Chip designer Advanced Micro Devices (NASDAQ: AMD) is on a roll. The stock is up by 68% year to date, having nearly doubled from last October's multiyear lows.

The company has become a credible rival to sector giant Intel (NASDAQ: INTC) in processors for desktops, notebooks, and even server systems of late. At the same time, AMD is nipping at the heels of graphics processing unit (GPU) leader Nvidia (NASDAQ: NVDA) at a time when GPUs hold the key to the booming artificial intelligence (AI) kingdom.

But many investors worry that the time to buy AMD may have passed. If the stock has doubled in a year and trades at a lofty 95 times free cash flows, where is the room for future gains?

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Source Fool.com