Advanced Micro Devices (AMD 3.37%) shares have risen sharply in the last six months, but it's way too early to take profits. I continue to hold this stock, as AMD is well positioned to benefit from growing chip demand across several markets -- not just data centers.
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More than 120 Ryzen artificial intelligence (AI)-powered PC designs are shipping in 2026, positioning AMD to continue growing its client segment. AMD has been executing extremely well in the PC market, with client segment revenue up 46% year over year in the third quarter. This makes up about 30% of AMD's total revenue.
NASDAQ: AMD
Key Data Points
AMD is also positioning for growing demand in edge computing, where AI runs on local devices close to the end user. This will be crucial for future space missions. Blue Origin is using AMD's Versal 2, an adaptive system-on-chip (SoC) platform. This will run on Blue Origin's Mark 2 lunar lander that will send astronauts to the moon in 2028.
AMD is not just a one-trick pony. It has expertise in designing multiple chips for PCs, data centers, and the edge AI market. Analysts expect the company's revenue to reach $62 billion by 2027, with earnings growing at a 45% annualized rate. This is enough growth to justify the stock's forward price-to-earnings ratio of 38, leaving substantial upside for investors.
