There are no shortage of stock market winners for investors to choose from looking forward to 2026.
Advanced Micro Devices NASDAQ: AMD appears to be one of the most compelling AI setups for 2026, due to the company's position in the GPU market and the expected launch of its MI450 line, which has the potential to impact revenue and earnings.
Advanced Micro Devices is rapidly gaining share in the AI accelerator market, with 2024 data center revenue nearly doubling to $12.6B. The MI350 series, launching mid-2025 with 35x inference performance improvement and 288GB HBM3E memory, has secured deployment commitments from Microsoft, Meta, and OpenAI. Tier-one customer wins (Microsoft, Meta, OpenAI and Oracle) validate AMD's competitive positioning, while ROCm software progress narrows the ecosystem gap with Nvidia.
Advanced Micro Devices, Inc. has robust growth metrics but you have to question its valuation with seemingly rich multiples. AMD's Q3 delivered 36% revenue growth, margin expansion, and strong performance in data center, client, and gaming segments, offsetting embedded segment weakness, and more to come. If shares retrace, AMD stock could be incredibly attractively valued given our projections for EPS growth for 2026.
Heading into the new year, Advanced Micro Devices, Inc.'s stock is entrenched in a double-digit percentage drawdown, despite a sharp uptick in consensus revenue and EPS estimates for the 2025-2030 period. Given GenAI ROI uncertainties and OpenAI reliance, I understand the skepticism around AMD's business projections and stock volatility. However, Lisa Su & Co. have a long-standing track record of sandbagging guidance, and hence, I am happy to take their business outlook at face value.
It may have been a wilder ride for the semiconductor stocks and the broader AI trade in 2025.
Advanced Micro (AMD) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
AMD (NASDAQ:AMD) had a pretty solid 2025. The stock gained close to 80% through the year amid optimism about the company's AI business with compelling product launches and notable contract wins.
Wall Street will be watching to see if the chip maker's upcoming AI accelerators and first rack-scale offering will bring it closer in competition with Nvidia
Advanced Micro Devices is poised for a major rebound in AI GPU sales to China, highlighted by a potential $675M Alibaba order. AMD's MI308 chips, designed for China, are regaining lost market share, signaling strong demand versus domestic alternatives. The chip company supported projected EPS growth from under $4 in 2025 to over $24 by 2030 at the 2025 Financial Analyst Day.
AMD set strong fundamentals for long-term growth following the OpenAI deal and the upbeat third-quarter results of 2025. Team Red is switching to the N2 process and a new D2D interconnect technology, which entails hidden benefits for the upcoming AI roadmap. I am bullish on AMD prospects, with expectations of at least 15% upside potential until the Helios racks weigh in.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?