Cathie Wood is doubling down on Advanced Micro Devices (AMD) as the chipmaker’s AI story gains momentum. On Friday, January 16, Wood’s ARK Invest funds bought 4,844 shares of AMD, valued at about $1.10 million. The move comes as AMD stock has rallied about 90% over the past year, driven by optimism around its new AI GPUs (graphics processing units) and key strategic deals, including a partnership with OpenAI to deploy 6 GW of GPU capacity.
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Beyond AI, AMD continues to gain market share in the CPU (central processing unit) space, reinforcing its competitive position. Overall, Wall Street remains bullish on AMD stock and sees solid upside potential heading into 2026, suggesting the shares could still appeal to long-term investors despite recent gains.
Analysts Remain Upbeat About AMD Stock
Recently, top Wells Fargo analyst Aaron Rakers reiterated a Buy rating on AMD stock with a $345 price target, implying about 49% upside from current levels. Rakers expects 2026 to deliver continued “insatiable” data center compute demand, benefiting chipmakers like AMD. He also highlighted AMD’s strong and growing CPU market share, along with the upside potential from its Helios server rack system and AI GPUs.
Likewise, Jefferies analyst Blayne Curtis struck a constructive tone on AMD, forecasting strong GPU server growth driven by the expanding AI market and potential share gains. Curtis added that AMD could benefit as customers seek alternatives in the AI chip space, especially as demand broadens beyond a single supplier.
Also, top KeyBanc Capital Markets analyst John Vinh upgraded AMD from Sector Weight to Overweight and raised his price target to $270, citing strong demand from data center and cloud customers. He also lifted earnings forecasts to $4.01 per share for 2025 and $7.93 for 2026. While cloud processor deployments were flat month over month and memory shortages continue to cloud some end markets, Vinh sees AMD as a key winner from long-term growth in cloud and AI spending.
Is AMD Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for AMD is Strong Buy, based on 24 Buy and eight Hold ratings over the past three months. With that comes an average AMD stock price target of $284.07, representing a potential 22.53% upside for the shares.
