Why the Second Half of 2026 Could Be Huge for AMD Stock

By David Jagielski, CPA – Mar 30, 2026 at 4:00PM ESTKey PointsCEO Lisa Su says revenue for its MI450 chip will ramp up later this year.An acceleration of its growth rate could be key to AMD's stock rallying higher.Currently, it's trading at a bit of a hefty premium.Advanced Micro Devices (AMD 2.87%) stock hasn't been doing well this year. Thus far, it has declined by 8% after what was a terrific performance in 2025, when it skyrocketed by 77%. Investor excitement has cooled, as AMD's growth rate remains high at more than 30%, but perhaps not enough to justify its valuation. Currently, its market cap is around $320 billion. The company has been showing signs of progress with its growth rate accelerating in recent years, but it may need to do more to continue to win over growth investors. The good news is that there could be some catalysts in the latter part of the year, which could spark a rally. Here's why the stock may be able to turn things around in the second half. Image source: Getty Images. Why AMD's growth rate could improve as the year goes on There will be plenty of developments and news items for AMD to watch for in the latter half of 2026. That's when the company's Helios artificial intelligence (AI) rack is expected to launch, which includes its latest chips and is designed for AI workloads. CEO Lisa Su also expects the company to generate revenue from its new MI450 as early as the third quarter, and for it to ramp up afterwards. Any positive signs that the company's advanced chips are doing well out of the gate are likely to result in investors loading up on AMD stock in anticipation of stronger results ahead. The name of the game in the chip wars is growth, and if AMD can show that it can take market share away from its larger rival, Nvidia, that could be what sends the tech stock on a more prolonged rally. ExpandNASDAQ: AMDAdvanced Micro DevicesToday's Change(-2.87%) $-5.80Current Price$196.19Key Data PointsMarket Cap$329BDay's Range$192.88 - $208.2852wk Range$76.48 - $267.08Volume1.6MAvg Vol37MGross Margin45.99% Is AMD's stock a good buy today? AMD has some exciting growth opportunities ahead as a result of its AI chips. The company's revenue grew by 34% last year, which was a solid improvement from the 14% growth it achieved in the prior year. If the company can continue building off these numbers and convince investors that its growth rate may remain high for the foreseeable future, it could result in sizable returns for investors. Currently, the stock trades at a forward price-to-earnings multiple of 30, which is a bit high. But if its growth rate increases and margins strengthen, then its valuation could begin to look more attractive as analysts upgrade their expectations. Growth, however, is one thing; margins can be an entirely different story. That's why, for now, I'd take a wait-and-see approach with AMD to see how strong its margins are as it rolls out its new chips. If both earnings and sales rise at high rates, that's a good sign that the business is going in the right direction and that AMD's valuation is likely to be more attractive -- but that's by no means a sure thing.Read NextMar 30, 2026 •By Jack CaporalThe AI Stocks Hedge Funds Love the MostMar 25, 2026 •By Eric TrieStock Market Today, March 25: Advanced Micro Devices Rises After Reports of CPU Price IncreasesMar 25, 2026 •By Chris NeigerWhy Advanced Micro Devices Stock is Gaining TodayMar 25, 2026 •By Geoffrey Seiler1 Tech Stock I'm Adding to My Portfolio While Everyone Is PanickingMar 23, 2026 •By Matt Frankel, CFPPrediction: This Unstoppable Growth Stock Will Be Worth $2 Trillion in the Next 7 YearsMar 21, 2026 •By Geoffrey SeilerI Just Put More Than $10,000 Into These 3 Tech Stocks. Here's Why.About the AuthorDavid Jagielski, CPA, has been a contributing Motley Fool stock market analyst covering healthcare, consumer staples, consumer discretionary, and technology stocks since 2017. David has more than 10 years of experience in finance roles across businesses of different sizes and sectors. He holds a Certified Public Accountant designation in Canada.TMFdjagielskiStocks MentionedAdvanced Micro DevicesNASDAQ: AMD$196.19(-2.87%)-$5.80NvidiaNASDAQ: NVDA$165.18(-1.40%)-$2.34*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.