Strong Analyst Sentiment on Advanced Micro Devices (AMD) Amid CES AI Processor Launches Despite Nvidia Competition

Advanced Micro Devices, Inc. (NASDAQ:AMD) is included in our list of the best stocks to buy right now.

Strong Analyst Sentiment on Advanced Micro Devices (AMD) Amid CES AI Processor Launches Despite Nvidia Competition

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As of January 12, 2026, 75% of analysts are bullish on Advanced Micro Devices, Inc. (NASDAQ:AMD). The consensus price target of $281.50 implies a 38.60% upside. Recent analyst commentaries reinforce the positive trend, with Jefferies reiterating a ‘Buy’ on January 4, 2026, and Truist Financial maintaining a ‘Buy’ rating on December 19, 2025, with a $277 target.

Positive analyst sentiment reflects the company’s ongoing AI hardware push, which was unveiled at CES on January 5, 2026. The MI455 AI processors for data center server racks were presented, which are sold to key customers like OpenAI. Additionally, the MI440X, optimized for enterprise on-premise deployments, was also presented. The MI500, previewed for 2027, is expected to deliver 1,000x performance gains over the previous generation. This positions Advanced Micro Devices, Inc. (NASDAQ:AMD) for substantial growth in AI compute infrastructure. Furthermore, the company emphasized its partnership with Generative Bionics on the GENE.01 humanoid robot, scheduled for commercial production in H2 2026. This reflects the company’s growing capabilities in physical AI applications.

Despite its strengths, analysts warn investors that Nvidia’s dominance is unlikely to be dethroned by Advanced Micro Devices, Inc. (NASDAQ:AMD). The analysts acknowledge that AMD’s OpenAI deal has the potential to generate billions in revenue, strengthening the company’s foothold in high-performance AI.

Advanced Micro Devices, Inc. (NASDAQ:AMD) focuses on developing CPUs, GPUs, AI accelerators, and embedded solutions across the Data Center, Client, Gaming, and Embedded segments.

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.

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