BofA Maintains Buy on AMD, Views 2026 as the Midpoint of a Decade-Long AI Infrastructure Cycle

Advanced Micro Devices Inc. (NASDAQ:AMD) is 1 of the best maturation stocks to bargain successful 2026. On December 16, Bank of America lowered the firm’s terms people connected AMD to $260 from $300 and maintained a Buy standing connected the shares. This sentiment was posted arsenic BofA revised its targets for US semiconductor stocks, identifying 2026 arsenic the midpoint of a decade-long modulation toward AI-optimized IT infrastructure. While the steadfast warns of near-term volatility arsenic investors scrutinize AI returns and hyperscaler spending, it expects this unit to beryllium mitigated by the enlargement of AI factories and LLM development.

In different news, connected December 2, AMD and Hewlett Packard Enterprise Co. (NYSE:HPE) announced an expanded collaboration to make the adjacent procreation of open, scalable AI infrastructure. A cardinal constituent of this concern is the AMD Helios architecture, an open, full-stack, rack-scale AI platform. HPE volition beryllium among the archetypal strategy providers to follow this architecture, which is engineered to simplify the deployment of monolithic AI clusters for research, cloud, and endeavor environments.

The Helios level is built connected the OCP Open Rack Wide plan and integrates a broad suite of AMD technologies. This includes next-generation AMD EPYC Venice CPUs, AMD Instinct MI455X GPUs, and AMD Pensando Vulcano NICs for scale-out networking. By utilizing the unfastened ROCm bundle stack, a azygous Helios rack tin present up to 2.9 exaFLOPS of FP4 performance.

To guarantee high-bandwidth and low-latency connectivity, HPE is contributing a purpose-built HPE Juniper Networking scale-up switch, developed successful collaboration with Broadcom, which utilizes the Ultra Accelerator Link implicit Ethernet/UALoE standard. HPE plans to connection the AMD Helios architecture globally starting successful 2026.

Advanced Micro Devices Inc. (NASDAQ:AMD) operates arsenic a semiconductor institution worldwide. It operates successful 3 segments: Data Center, Client and Gaming, and Embedded.

While we admit the imaginable of AMD arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you’re looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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Disclosure: None. This nonfiction is primitively published at Insider Monkey.