MU vs. AMD: Which AI Hardware Stock Has More Room to Run in 2026?

AMD Rides the AI Compute Supercycle

AMD has spent the past two years turning itself into a major force in AI accelerators. Its MI300 and MI355X chips have gained ground among cloud providers looking for alternatives to Nvidia (NVDA). Further, its EPYC CPUs now play a key role in the rise of “agentic AI” systems that need strong GPU and CPU power working together.

The company’s upside potential is driven by strong data center growth and rising demand for its AI accelerators. Also, the launch of new products, including next‑gen EPYC chips and MI‑series accelerators, should support momentum into the next year.

Wall Street analysts are bullish about AMD stock’s growth potential. It has a Strong Buy consensus rating on TipRanks, based on 28 Buys and seven Holds assigned in the past three months. After a stellar year-to-date rally of about 139%, the average AMD price target of $489.00 per share implies 4.41% downside risk.

Micron Remains the Memory Powerhouse Behind the AI Boom