AMD has room to run higher over the long run, even after delivering healthy gains to investors in 2026.
AMD has room to run higher over the long run, even after delivering healthy gains to investors in 2026.
Advanced Micro Devices (AMD +2.21%) stock has been a standout performer on the market in 2026, with shares of the company rising by an impressive 147% as of this writing, well above the 57% gains clocked by the PHLX Semiconductor Sector index this year.
The impressive rally in AMD stock has been driven by the healthy demand for the company's server central processing units (CPUs) and graphics cards, which are deployed in artificial intelligence (AI) data centers. Moreover, the company has been doing well in the personal computer (PC) market, even though the industry has been under severe pressure due to high component costs.
But are AMD's catalysts and opportunities strong enough to send the stock soaring over the long run? We will closely examine AMD's growth drivers and see if it is worth investing $5,000 in this semiconductor stock through 2032.
AMD has diversified catalysts that could fuel its growth over the next six years
AMD currently gets the majority of its revenue from the data center segment. In Q2, the data center segment produced 58% of AMD's top line. The segment's revenue increased by 107% year over year to $6.7 billion, which isn't surprising as the company is seeing strong demand for its AI chips.
AMD Advanced Micro Devices
$540.44+$11.69 (+2.21%)
NASDAQ · As of 2:59 PM ET 10/19/26
So, the data center business will play a central role in dictating where AMD stock could be in 2032. The good news for AMD investors is that it expects AI chip demand to remain solid through the end of the decade. Management noted on AMD's recent earnings call that the total addressable market (TAM) for AI data center accelerators is poised to grow at a 45% compound annual growth rate (CAGR) through 2030, generating $1.4 trillion in revenue by the end of the decade.
Averytin News Financial update.