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BofA Maintains Buy on AMD, Views 2026 as the Midpoint of a Decade-Long AI Infrastructure Cycle

Advanced Micro Devices Inc. (NASDAQ:AMD) is one of the best growth stocks to buy in 2026. On December 16, Bank of America lowered the firm’s price target on AMD to $260 from $300 and maintained a Buy rating on the shares. This sentiment was posted as BofA revised its targets for US semiconductor stocks, identifying 2026 as the midpoint of a decade-long transition toward AI-optimized IT infrastructure. While the firm warns of near-term volatility as investors scrutinize AI returns and hyperscaler spending, it expects this pressure to be mitigated by the expansion of AI factories and LLM development.

In other news, on December 2, AMD and Hewlett Packard Enterprise Co. (NYSE:HPE) announced an expanded collaboration to develop the next generation of open, scalable AI infrastructure. A central component of this partnership is the AMD Helios architecture, an open, full-stack, rack-scale AI platform. HPE will be among the first system providers to adopt this architecture, which is engineered to simplify the deployment of massive AI clusters for research, cloud, and enterprise environments.

The Helios platform is built on the OCP Open Rack Wide design and integrates a comprehensive suite of AMD technologies. This includes next-generation AMD EPYC Venice CPUs, AMD Instinct MI455X GPUs, and AMD Pensando Vulcano NICs for scale-out networking. By utilizing the open ROCm software stack, a single Helios rack can deliver up to 2.9 exaFLOPS of FP4 performance.

To ensure high-bandwidth and low-latency connectivity, HPE is contributing a purpose-built HPE Juniper Networking scale-up switch, developed in collaboration with Broadcom, which utilizes the Ultra Accelerator Link over Ethernet/UALoE standard. HPE plans to offer the AMD Helios architecture globally starting in 2026.

Advanced Micro Devices Inc. (NASDAQ:AMD) operates as a semiconductor company worldwide. It operates in three segments: Data Center, Client and Gaming, and Embedded.

While we acknowledge the potential of AMD to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AMD and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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