Where Will AMD Be in 2028?
Key Points
Shares of Advanced Micro Devices may not have moved much by the time 2028 arrives.
AMD will need to post strong growth for the foreseeable future to justify its stock price.
- 10 stocks we like better than Advanced Micro Devices ›
Advanced Micro Devices (NASDAQ: AMD) has delivered strong returns this year, but unless you've held over the past 10 months, you haven't gained anything. The bigger risk lies in what's ahead for AMD, as that will determine future returns.
AMD has to continue proving itself to the market quarter after quarter, as there is a lot of skepticism about its positioning compared to other industry giants. By 2028, I think this will be clear, but where will the stock be? I think it will be in the exact same spot. Here's why.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
Image source: The Motley Fool.
AMD's growth has already been pulled ahead
For most of AMD's life, it has always been viewed as an alternative product line, rather than the industry standard. This has hurt it on more than one occasion, and the AI build-out is no different. Nvidia is seen as the industry standard, with AMD as a solid alternative. But it's not the first choice.
However, AMD's products are starting to be used in more applications, and this has caused its data center revenue growth rate to spike. In Q2, its data center revenue rose 107% year over year, so clearly it's starting to become a more popular choice. AMD will need to continue that performance for the foreseeable future, as there is a ton of growth already priced into the stock.
Currently, AMD's shares trade at a very expensive 136 times trailing earnings. To make matters worse, it was over 160 just a few days ago.
AMD PE Ratio data by YCharts
That's a very optimistic price tag, and it indicates there is a lot of expected growth that has been pulled forward. If you value the stock based on 2027 earnings, this is confirmed.
AMD PE Ratio (Forward 1y) data by YCharts
AMD's stock trades for 33.5 times next year's earnings, not this year's. That's a huge premium, and I think it's a bit absurd. For comparison, the industry standard is Nvidia. It trades at 27 times earnings right now. So, there is well over a year and a half worth of growth already priced into the stock.
By the beginning of 2028, I think AMD's stock will not have budged much. It needs to go through a year or so of lackluster stock growth so that business results can catch up to the stock price. The stock is well in front of the business right now, which can cause poor future returns. If you're sitting on big AMD gains, now may be the time to sell and find a different stock. If you haven't bought any, now probably isn't the best time to get in.
Should you buy stock in Advanced Micro Devices right now?
Before you buy stock in Advanced Micro Devices, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Advanced Micro Devices wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $350,756!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,363,905!*
Now, it’s worth noting Stock Advisor’s total average return is 922% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of October 22, 2026.
Keithen Drury has positions in Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices and Nvidia. The Motley Fool has a disclosure policy.
