AMD's AI Leap: TD Cowen Sees 2026 Growth

Advanced Micro Devices (AMD) is positioned for significant growth in the AI sector by 2026, according to TD Cowen. The investment firm has placed AMD on its coveted Best Ideas list, asserting that the chipmaker's potential is currently overlooked. TD Cowen's optimism is fueled by upcoming product releases, including the Helios platform and MI450 accelerator, slated for mid-2026, which are projected to double AMD's earnings by the fourth quarter of that year.

TD Cowen projects AMD's AI accelerator business alone could achieve $89 billion in sales by 2030, expanding at a remarkable 67% annual rate. This forward-looking assessment comes despite AMD's stock being down 18% from its all-time high as of 2025. The firm maintains a "Buy" rating on AMD stock, with a $290 price target, viewing current market weakness as an opportune entry point before anticipated product ramp-ups.

The company recently revealed ambitious plans to grow its data center business by 60% annually and aims for double-digit market share in AI accelerators by 2030. Key to this strategy are the mid-2026 launches of the MI450 GPU series and Helios system. Furthermore, AMD's significant partnership with OpenAI for six gigawatts of computing capacity over five years underscores its growing influence, though the company emphasizes this is just one part of its broader expansion strategy with multiple hyperscale customers.