Advanced Micro Devices (AMD) enters 2026 with high expectations after its stock surged 78% in 2025. The company aims to significantly challenge Nvidia’s dominance in the AI chip market. AMD secured major AI deals with partners including OpenAI and Oracle, establishing itself as a primary competitor. This momentum makes 2026 a crucial year for executing its ambitious goals.
Wall Street focuses on the rollout of AMD’s Instinct MI450 series of AI accelerators. This product, expected in the second half of 2026, represents the company's first direct competition against Nvidia’s rack-scale solutions.
Management set aggressive targets for the year. AMD seeks over 60% annual growth in data-center sales and targets over 80% annual growth in AI revenue. While analysts remain broadly optimistic, they note the stock’s current valuation already reflects these high expectations, leaving little margin for error in product execution and market share capture.