Advanced Micro Devices (AMD), a leading maker of high-performance chips, just earned a new upgrade from Wall Street as strong AI demand continues to lift its outlook. Top Erste Group analyst Hans Engel upgraded the stock from Hold to Buy, pointing to rising demand for data center CPUs and GPUs. He expects this strength to show up soon, with Q1 2026 revenue projected to grow by about 32% year-over-year.
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Trade NVDA with leverageWhy the Analyst Turned Bullish on AMD Stock
Engel believes AMD is well positioned to benefit from the surge in AI workloads, especially in data centers where demand for high-performance computing remains strong. He also highlighted improving operating margins, noting that AMD is now comparing well with peers. This suggests the company’s product lineup is gaining traction and delivering better profitability.
Looking ahead, the next key catalyst is the AMD Instinct MI450, expected in the second half of 2026. Built on advanced 2nm technology, it is set to compete with Nvidia (NVDA)’s upcoming Ruby architecture.
While Nvidia remains the market leader, AMD’s move to 2nm could give it an efficiency edge, which matters for cloud companies trying to cut power costs. The MI450 is also expected to offer higher memory capacity, a key need for training large AI models. This could help AMD win more customers and gain share in the fast-growing AI market.
Is AMD a Buy or Sell Now?
Turning to Wall Street, AMD stock has a Moderate Buy consensus rating based on 21 Buys and eight Holds assigned in the last three months. At $285.16, the average AMD price target implies a 31.11% upside potential.
