TD Cowen Names Advanced Micro Devices (AMD) One of its Best Ideas for 2026

Advanced Micro Devices, Inc. (NASDAQ:AMD) ranks among the best AI stocks to buy according to analysts. On December 2, TD Cowen restated its Buy rating and $290 price target for Advanced Micro Devices, Inc. (NASDAQ:AMD), naming it one of its “Best Ideas 2026” as the company prepares to unveil its Helios AI platform. Despite recent share price decline, the firm expressed optimism about AMD’s position in the artificial intelligence computing industry, stating that the current prices offer “an attractive entry point” for investors ahead of key product launches.

While acknowledging the potential of instability in the AI industry, TD Cowen highlighted AMD’s hardware roadmap, advancements in building its ROCm software ecosystem, and client successes as factors supporting its optimistic view of the company’s AI computing approach.

The firm particularly emphasized that the future Helios rack and MI450 products represent “a key inflection in AMD’s story beginning in mid-2026,” and it advised investors to buy the stock before this expected period of growth.

At the same time, AMD is intensifying its MI300 accelerators and preliminary work on the MI400 line. Over the coming years, both chip families are anticipated to be crucial to the company’s AI progress. Demand, according to management, is expanding beyond early showcase clients, with interests ranging from cloud providers to businesses.

Advanced Micro Devices, Inc. (NASDAQ:AMD) designs and builds high-performance computing, graphics, and AI technologies used across data centers, PCs, and emerging AI workloads.

While we acknowledge the potential of AMD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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