MI450 AI Accelerator to Power Advanced Micro Devices' (AMD) 2026 Returns

Advanced Micro Devices (NASDAQ:AMD) is one of the 10 best NASDAQ growth stocks to buy for the next 10 years. On January 29, Susquehanna analyst Christopher Rolland reiterated his Buy rating on Advanced Micro Devices (NASDAQ:AMD) stock, along with a price target of $300. This represents a 19% upside from the current price.

The reasons for the above upgrade are twofold. First, AMD’s fundamentals are improving according to the analyst. AMD’s EPYC Server CPUs have a strong demand, with certain configurations sold out already for a major part of 2026. The Windows 10 end-of-life has also spurred PC demand, though memory constraints are likely going to keep the growth in check for now.

The other positive, according to Christopher Roland, is the AI demand. He believes Q4 results should come in strong thanks to robust data center demand, especially the MI350 GPU sales. AMD is expected to benefit from the launch of the MI450 accelerator in the second half of the year as large-scale AI deployments kick in.

AMD’s new Ryzen 7 chip, announced at CES 2026, is also receiving positive user feedback. According to a report on hardware website Tom’s Hardware, the Ryzen 7 9850X3D chip shows a 7% performance increase over the prior 9800X3D chip. Moreover, it achieves this without needing a significant upgrade on the memory front. This shows how AMD’s product upgrades continue to impress its users, a positive sign for any company’s R&D efforts.

Advanced Micro Devices (NASDAQ:AMD) is a semiconductor company known for its Ryzen CPUs, Radeon graphics cards, EPYC server processors, and, more recently, AI inference accelerators. The company is led by Dr. Lisa Su and is headquartered in Santa Clara, California.

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.