Advanced Micro Devices (AMD) stock ripped further up on Sept. 21, helping the company’s market cap exceed $1 trillion for the first time. As of this writing, AMD sits decisively above its key moving averages (MAs), with an RSI in the early 70s indicating intense buying pressure.
At the time of writing, AMD shares are trading at about 3x their price at the start of this year.
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www.barchart.comWhat’s Behind AMD Stock’s 2026 Rally?
AMD’s sensational 2026 rally is premised on accelerated demand across the artificial intelligence (AI) landscape and expanding data center market share.
The company’s latest generation of Instinct AI accelerators and EPYC server processors are seeing explosive enterprise adoption, reinforcing it as a co-leader alongside Nvidia (NVDA) in powering next-gen AI infrastructure.
Robust hyperscaler orders, expanding software ecosystem compatibility, and notable custom chip partnerships helped AMD consistently deliver beat-and-raise quarters in 2026.
Coupled with a significant rebound in PC sales and solid demand for embedded solutions, broad-based operational execution has fueled massive institutional buying, cementing AMD’s elite status in the semiconductor industry.
Options Sentiment Remains Bullish for AMD Shares
Despite massive year-to-date outperformance, options traders believe AMD shares’ rally is not at all out of steam just yet.
According to Barchart, the put-to-call ratio on contracts expiring mid-October sits at 0.64x currently, indicating a strong bullish skew (a reading below 1.00 is typically interpreted as constructive). Data also pegs the upper price on those contracts at $669, signaling potential for another 10% rally in the weeks ahead.
That said, valuation demands some caution in playing Advanced Micro Devices at current levels, given it’s going for roughly 87x forward earnings, which makes it much more expensive to own than Nvidia. Unlike NVDA, the Nasdaq-listed firm does not currently pay a dividend.
How Wall Street Recommends Playing AMD
Wall Street analysts also seem to believe that AMD stock has baked in a lot of positives already.
While the consensus rating on Advanced Micro Devices remains at “Strong Buy,” the mean price target of about $623 is roughly in line with the price at which it’s trading at writing.
www.barchart.com On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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