Shares of chipmaker Advanced Micro Devices (AMD +4.42%) have been on a tear in 2026. As of this writing, the stock has more than doubled year to date and nearly quadrupled over the past 12 months.

The latest leg of the rally followed AMD’s first-quarter earnings report in early May, when revenue growth accelerated and free cash flow more than tripled year over year. Additionally, management’s guidance for the current period was impressive.

With shares now near record highs, the question is whether new money should still go to work here. After all, the business is firing on all cylinders, with surging demand for artificial intelligence (AI) infrastructure pushing the company’s data center business to new highs. But the stock’s valuation…