Advanced Micro Devices stock is on a tear this year, and there could be more upside ahead.

Advanced Micro Devices ( AMD 0.17% ) is one of the world's largest suppliers of semiconductors. Its chips can be found in popular consumer products like Sony 's PlayStation 5, Microsoft 's Xbox, and even the infotainment systems inside Tesla 's electric vehicles.

However, AMD's biggest opportunity right now is in the data center. The company is planning to launch a new lineup of graphics processing units (GPUs) for AI development in 2026, which could blow the competition -- including Nvidia ( NVDA 1.05% ) -- out of the water.

AMD stock is up 34% in 2025 already, but it's still below its all-time high just north of $200, which was set last year. Should investors scoop it up whi

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