Advanced Micro Devices (AMD) and Qualcomm (QCOM) have very different growth outlooks in 2026, according to Wolfe Research. The firm remains bullish on AMD while taking a more cautious stance on Qualcomm, as AI demand continues to favor one over the other.
Claim 30% Off TipRanks
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Discover top-performing stock ideas and upgrade to a portfolio of market leaders with Smart Investor Picks
AMD Benefits from Strong AI Demand and Meta Tailwinds
Wolfe Research maintained an Outperform rating on AMD, citing strong momentum in its data center business. While near-term estimates remain largely unchanged, the firm raised its 2027 forecasts, now expecting revenue of $74 billion and EPS of $12.63, driven by rising AI demand.
A key driver is AMD’s growing relationship with Meta (META), which is expected to fuel a ramp-up in server GPU sales. The analyst also sees a major catalyst as AMD is expected to begin shipping its first “gigawatt-scale” GPU clusters in the second half of 2026, with potential follow-on orders from customers like Meta and OpenAI adding further upside.
There is also potential upside from a third hyperscale customer, which could add $2 to $3 in annual EPS. That said, some risks remain, as continued weakness in the PC market weighs on the client segment, even as server CPUs and GPUs perform strongly.
Weak Handset Demand Continues to Weigh on Qualcomm
In contrast, Wolfe Research maintained a Hold rating on Qualcomm, citing ongoing challenges in its core business. The firm flagged continued weakness in the handset segment, which remains Qualcomm’s biggest revenue driver. Slower demand and pricing pressures are expected to weigh on performance.
Analysts also warned that Qualcomm’s licensing revenue estimates may need to come down to reflect weaker market conditions.
While Qualcomm is expanding into areas like automotive, IoT, and AI compute, Wolfe remains uncertain whether these segments can grow fast enough to offset slowing smartphone-related revenue.
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 $285.67, implying about 2%–3% upside from current levels.
By contrast, Qualcomm has a Hold rating. Its average price target of $154.56 suggests roughly 13% upside, though analyst sentiment remains more cautious compared to AMD.
