Advanced Micro Devices: Can AI-Fueled Rally Continue?

Advanced Micro Devices ( (AMD) ) has been popular among investors this week. Here is a recap of the key news on this stock.

Advanced Micro Devices has started 2026 riding strong momentum from last year’s artificial intelligence boom, after its stock surged roughly 70%–77% in 2025. Shares now trade around $214, nearly 20% below their October 2025 high, yet Wall Street remains broadly optimistic. On TipRanks, AMD carries a Strong Buy consensus, with around 30 Buy ratings and fewer than 10 Holds. The average analyst price target sits near $282–$283, implying roughly 27%–32% upside over the next 12 months, and some of the most bullish calls go much higher: Raymond James’ Simon Leopold sees the stock reaching $377, suggesting more than 70% further upside. Even the most cautious top analyst, Bernstein’s Stacy Rasgon, rates the stock a Hold with only modest downside to a $200 target, underscoring how rare outright bearish views have become.

The bullish thesis centers on Advanced Micro Devices’ growing role in AI and high-performance computing, especially its EPYC data‑center chips, Ryzen CPUs, and AI accelerators that compete with Nvidia in the GPU market. Top analysts at Truist, Bank of America, and Cantor Fitzgerald argue that AMD is well positioned to benefit from what they see as an 8‑to‑10‑year AI infrastructure upgrade cycle, with 2026 as a key middle phase. They expect continued strength in data‑center demand, large language model training, and AI “factories,” even as they flag risks from macroeconomic weakness, geopolitics, and intense pricing pressure in semiconductors. Valuation remains a key talking point: AMD trades at a price‑to‑sales multiple of about 7.9x, far below Nvidia’s 22x, which some investors view as a relative bargain if the AI spending boom persists and avoids a bubble-style collapse.