10 Best Semiconductor Stocks to Buy Heading into 2026

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2. Advanced Micro Devices, Inc. (NASDAQ:AMD)

Number of Hedge Fund Holders: 115

Average Upside Potential: ~37%

Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the best Semiconductor Stocks to Buy Heading into 2026. On November 24, the company announced that Zyphra achieved a significant milestone in large-scale AI model training with the development of ZAYA1. This is the first large-scale Mixture-of-Experts (MoE) foundation model trained with the help of an AMD GPU and networking platform.

Notably, the results from Zyphra demonstrate that the model offers competitive or superior performance to leading open models throughout reasoning, mathematics, and coding benchmarks. This exhibits the scalability and efficiency of AMD Instinct GPUs for production-scale AI workloads.

In a different development, Advanced Micro Devices, Inc. (NASDAQ:AMD) highlighted that AMD Instinct™ MI350 Series GPUs demonstrate the fastest ramping product in its history. Over the upcoming 3 – 5 years, and considering the leadership product portfolio, Advanced Micro Devices, Inc. (NASDAQ:AMD) anticipates delivering over 60% revenue CAGR for its data center business and over 10% revenue CAGR throughout its Embedded and Client, and Gaming businesses.

Across Client and Gaming, the company has been strengthening its leadership, with the expansion of enterprise adoption as well as a growing portfolio of AMD Ryzen processors. Advanced Micro Devices, Inc. (NASDAQ:AMD) anticipates exceeding 40% client revenue market share while building on a base of over 1 billion AMD-based gaming devices and 3 generations of leadership consoles.

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