This Top Tech Stock Can Keep Crushing the Market After Doubling in the Past Year
Advanced Micro Devices (NASDAQ: AMD) has been on an incredible run over the past year with shares of the chipmaker nearly doubling thanks to its gains across the CPU (central processing unit) and GPU (graphics processing unit) markets against formidable rivals Intel (NASDAQ: INTC) and NVIDIA (NASDAQ: NVDA).
AMD has done well to shake Intel's dominance in both PC CPUs and server processors thanks to an advanced manufacturing process. Meanwhile, NVIDIA has also felt the pain from AMD's strategy of providing performance at attractive price points in the discrete graphics cards space.
However, AMD stock seems priced for perfection. It has a trailing price-to-earnings (P/E) ratio of nearly 125, while the forward P/E multiple of 47 does not scream value, either. The expensive valuation means that AMD's growth is already priced into its shares. It will have to consistently outperform Wall Street's ambitious expectations to justify the same and remain a top growth stock.
Source Fool.com
