AMD Stock Soars 300% in a Year, but Motley Fool Sees Better Value in Nvidia (NVDA)

Advanced Micro Devices (AMD) shares have surged nearly 300% over the past 12 months, but analysts at The Motley Fool now say the rally has left the stock overvalued and recommend rotating into Nvidia (NVDA). AMD currently trades at 63 times forward earnings, a premium that may limit further upside despite solid growth. AMD announced late 2025 a five-year plan targeting a 35% overall compound annual growth rate, driven by a 60% CAGR in data center revenue. First-quarter 2026 results largely met these goals: data center revenue rose 57% year-over-year, client and gaming climbed 23%, and embedded gained 6%. However, the post-earnings rally pushed valuations to levels the Fool deems unsustainable. By comparison, Nvidia reported revenue growth of 85% and carries a forward P/E of just 24. The Fool argues Nvidia offers superior growth and a more attractive valuation. It suggests AMD shareholders consider taking profits and shifting into Nvidia, noting that AMD's heavier exposure to consumer markets adds cyclical risk.