Can Advanced Micro Devices (AMD) Gain Ground in the AI Chip Race?

2026-02-23 18:06:20

Advanced Micro Devices (AMD) is facing increased scrutiny in the AI chip race, with its Q4 2025 results and Q1 2026 guidance falling short of elevated analyst expectations despite strong growth. While investors were initially disappointed by the stock’s 17% decline post-earnings, the company expects significant growth in the latter half of 2026 with the release of new powerful AI accelerators like the MI450. Analysts remain largely bullish on AMD, with a consensus price target suggesting a 41% upside.

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