Advanced Micro Devices (AMD) and Intel (INTC), two leading semiconductor companies, saw their price targets raised by Bernstein, reflecting improving trends in data centers and AI demand. Top Bernstein analyst Stacy Rasgon lifted the price target on AMD to $265 (from $235) and on Intel to $60 (from $36), while maintaining Market Perform ratings on both stocks.
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It is worth noting that Rasgon ranks 96th out of more than 12,000 analysts tracked by TipRanks. He has a success rate of 68%, with an average return per rating of 32.10% over a one-year timeframe.
Why Bernstein Is More Positive on AMD
For AMD, the analyst raised estimates mainly due to stronger server demand. Rasgon now expects EPYC server sales to grow about 50% year-over-year in 2026, supported by continued demand from cloud and AI workloads. He also included the impact of AMD’s recent deal with Meta Platforms (META), which he believes is not fully reflected in current market estimates.
As a result, Bernstein increased its 2026 revenue forecast to $45.8 billion, with AI contributing around $14.2 billion. For 2027, the firm now expects revenue to reach $76.7 billion, well above the consensus estimate.
However, the analyst remains cautious due to weaker expectations for the PC market and some uncertainty around how smoothly large AI programs will scale.
Intel Gets a Boost from Server Strength
Bernstein also turned more positive on Intel’s outlook, mainly due to improving demand in its data center business. The firm now expects Xeon server sales to grow about 36% year-over-year in 2026, supported by higher pricing and better product mix. This has also led to higher gross margin estimates.
For 2026, Bernstein expects Intel to generate $53.3 billion in revenue and $0.82 in earnings per share, with profits coming in above consensus estimates. Looking ahead to 2027, the firm sees further improvement, with earnings rising to $1.33 per share.
However, similar to AMD, the analyst lowered expectations for the PC segment, which continues to act as a drag on overall growth.
Which Chip Stock Is the Better Buy Right Now?
Turning to Wall Street, out of the two stocks mentioned above, AMD stands out with a Moderate Buy consensus from analysts. AMD stock carries an average price target of $284.42, implying roughly 10% upside from current levels.
By contrast, Intel has a Hold rating from analysts. INTC’s stock average price target of $52.90 suggests about 19% downside, pointing to more limited near-term upside compared with AMD.
