Barron’s Doubles Down: Hold AMD and Growth Stocks on Momentum, History

Barron’s afternoon commentary on May 11 reinforces a bullish hold on growth stocks like AMD, highlighting persistent AI-driven momentum in semiconductors and software. The Vanguard S&P 500 Growth ETF surged ~13% in the past month—outpacing value’s ~4%—fueled by upgraded earnings estimates for AI data centers and cloud spending rebounds. Analysts project 21% earnings growth for growth in 2027 (vs. 12% for value), with growth at ~22x forward P/E versus value’s ~18x. Historical Dow Jones data indicates another ~10 percentage point outperformance over the next year after a 10-point monthly gap. Risks include slower data-center buildouts or tech demand slowdowns curbing multiples.