An analyst at Seeking Alpha has downgraded Advanced Micro Devices, Inc. (AMD) to a 'Hold' rating, citing the stock's massive 165% rally in 2026. While acknowledging the company's strong fundamentals, including a 50% year-over-year revenue growth in the second quarter driven by a 107% surge in data center sales, the analyst believes the current valuation has priced in much of the expected future growth. The report suggests that the risk/reward profile is no longer attractive for new buyers at the current price levels.
This downgrade comes after AMD's market capitalization crossed the $1 trillion threshold for the first time on September 21, 2026. The stock's significant appreciation has been fueled by strong demand for its AI accelerators and data center products. The success of Meta's AI agent, Muse, which utilizes AMD processors, has been a recent catalyst for the stock's performance.