AMD's projected high earnings growth justifies its current valuation; holding through year-end could yield ~55% return if estimates are met.

Now, here's Advanced Micro Devices. I was asked about it. I have been showing you the company's history so far, but let's look at its future. If this company grows by 73% over the next two years and a quarter as analysts predict, I want to make an important point. Analysts have significantly raised their estimates for this company for each of the years shown in this chart. As you can see, profits rose from $4.17 in 2025, grew by 80% to reach $765 by 2026, and are expected to double in the next year, 2027 , and then grow by another 43% . Therefore, given this diminishing accumulation, if you buy this stock today and hold it until the end of the year, and the company achieves the expected earnings growth , you will get an average annual return of approximately 55%. This is less than the company's expected growth rate, because technically, with the price above the orange line, you would have paid extra for the share. However, one thing I've emphasized in previous videos over the years is that you really can't pay an exorbitant amount for an excellent growth stock if it's already growing at high rates.