AMD Stock Outperformed Nvidia. Is It Still a Buy?

Advanced Micro Devices (AMD) stock is on a solid run, rewarding investors with gains that have outpaced those of its much larger rival, Nvidia (NVDA). AMD shares have climbed more than 104% over the last 12 months, reflecting enthusiasm around artificial intelligence (AI).

This rally is particularly notable given the persistent skepticism surrounding AMD’s ability to compete head-to-head with Nvidia in the high-end graphics processing unit (GPU) market. Nvidia remains the dominant player in advanced GPUs, yet AMD’s stock performance suggests that investors are increasingly confident in the company’s broader growth strategy, execution, and long-term positioning.

The momentum has carried into 2026. As of Jan. 21, AMD shares were up 16.6% year-to-date (YTD), while NVDA stock was trading lower. The contrast becomes even more pronounced over longer periods. Over the past six months, AMD stock has surged more than 59%, far exceeding Nvidia’s roughly 7% gain over the same timeframe. Looking back over the full year, AMD has more than doubled, while NVDA has risen just over 30%.

What’s Behind the Rally in AMD Stock?

AMD stock has moved sharply higher following the company’s latest Financial Analyst Day, where management provided a solid growth outlook. Accelerating AI demand and product innovation is likely to give a significant boost to AMD’s…