Advanced Micro Devices (NASDAQ: AMD) has a potent role in tech, supplying its chips to companies across the industry. Its hardware powers everything, from video game consoles to cloud platforms, consumer-built personal computers, laptops, and AI models. As a result, AMD formed lucrative partnerships with companies like Microsoft (NASDAQ: MSFT), Sony, and Meta Platforms.

AMD's success over the years saw its revenue and operating income increase by 224% and 45%, relatively, since 2019. Meanwhile, its stock climbed by 384% in the last five years. The company boasts a long growth history and has a solid outlook as it expands into high-growth sectors like AI.

However, a rally over the last year and a business that has only recently begun seeing returns on its significant investment in AI means its stock isn't exactly a bargain.

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Source Fool.com