Missed Nvidia in 2009? This Rare Signal Is Flashing Again.\u00a0In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia.\u00a0For the first time in years, that same “Total Conviction” signal is flashing for a company 1\/100th the size of Nvidia.\u00a0Continue \u00bb<\/a> <\/p>\n Is it just the beginning? <\/p>\n AMD’s shares have gained 279% over the past year. But the company’s current Wall Street average price target (according to Yahoo! Finance) is $525.40, implying a downside of about 5% from current levels. To Wall Street’s credit, AMD looks expensive by at least some valuation metrics. The company is trading at 79.4x forward earnings, compared to an average of just 21.4x for information technology stocks. However, there are also good reasons to be bullish on the stock. <\/p>\n AMD is a leader in the server CPU (Central Processing Unit) market, putting it in a strong position to profit from the agentic AI boom. AI agents are autonomous systems that can perform a range of tasks without direct human input. Some voices within the industry believe AI agents will take over. Nvidia’s (NASDAQ: NVDA) CEO, Jensen Huang, thinks there will eventually be billions of them. <\/p>\n Since AI agents run on CPUs, demand for AMD’s market-leading processors could soar. This could be the start of a sustained run for the company that might, to some extent, mirror Nvidia’s performance over the past few years. And it’s worth remembering that some investors and analysts thought Nvidia was overvalued the entire time. Yet the semiconductor specialist<\/a> managed to defy expectations, as the AI market proved much larger than many had anticipated. <\/p>\n Something similar (though likely not quite as impressive) could happen with AMD, given that the company has gained market share in the server CPU industry in recent quarters, boasts a wide moat<\/a> from its deep expertise and high switching costs, and could tap into an opportunity worth more than $120 billion by 2030, expanding at a compound annual growth rate (CAGR) of 35% through then, according to management. <\/p>\n Perhaps the most impressive thing about this projection is that in November 2025, AMD had estimated that the market would register a CAGR of 18% through the next three to five years. The company was forced to almost double that forecast six months later, strongly suggesting that demand for its products is accelerating. That’s why, in my view, AMD stock is still a buy. <\/p>\n Should you buy stock in Advanced Micro Devices right now? <\/p>\n Before you buy stock in\u00a0Advanced Micro Devices, consider this: <\/p>\n The Motley Fool\u00a0Stock Advisor\u00a0analyst team just identified what they believe are the\u00a010 best stocks<\/a>\u00a0for investors to buy now\u2026 and\u00a0Advanced Micro Devices\u00a0wasn’t one of them.\u00a0The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. <\/p>\n Consider when\u00a0Netflix\u00a0made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation,\u00a0you’d have $398,160!*\u00a0Or\u00a0when\u00a0Nvidia\u00a0made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation,\u00a0you’d have $1,249,202!* <\/p>\n That performance is why people listen. With a track record of\u00a0beating the S&P 500 by 4x,\u00a0Stock Advisor\u00a0offers a distinct advantage. Don’t miss the latest top 10 list, available with\u00a0Stock Advisor, and join an investing community built for the long haul. <\/p>\n See the 10 stocks \u00bb<\/a> <\/p>\n *Stock Advisor returns as of July 15, 2026. <\/p>\n Prosper Junior Bakiny<\/a> has positions in Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices and Nvidia. The Motley Fool has a disclosure policy<\/a>. <\/p>\n