Should You Buy Advanced Micro Devices (AMD) Stock After Its 12-Month Return of 200%?

Advanced Micro Devices has become one of Nvidia's fiercest competitors in the market for artificial intelligence data center chips.

The company's data center revenue more than doubled during the 2026 second quarter.

Whether investors should buy AMD stock might depend entirely on their time horizon.

Advanced Micro Devices (NASDAQ: AMD) is one of the world's leading suppliers of graphics processing units (GPUs) for data centers, which are the primary chips used in artificial intelligence (AI) training and inference workloads. In fact, it has become one of the most formidable competitors to the industry leader, Nvidia .

On Aug. 4, AMD released its operating results for the 2026 second quarter, and they revealed substantial revenue and earnings growth led by its data center business. But considering its stock is up 200% during the past 12 months, is most of that growth already priced in? The answer might depend on how long an investor plans to hold the stock, and I'll explain why.

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AMD was on the back foot when it entered the AI data center race in 2023. Its MI300X GPU was designed to compete with Nvidia's industry-leading H100, but that company was already in the process of launching its Blackwell architecture, which extended its dominance.

AMD is closing the gap, though, and it has since captured some of Nvidia's top customers, including Oracle , Microsoft , and OpenAI. AMD's new MI450 series GPUs are widely expected to be a comparable alternative to Nvidia's new Vera Rubin chips when they start shipping during the next few months, which should significantly increase the company's market share.