Both Intel (INTC) stock and Advanced Micro Devices (AMD) stock have become healthy rivals to the dominant Nvidia (NVDA) in the AI stock market race. INTC stock is up 80% since the beginning of the year, and AMD is up 78%, both significantly outpacing Nvidia’s gains. Although the latter’s stock is still at a much higher premium than INTC, Intel and AMD still appear to be good choices for investments in 2026. Which would be a better bet?
Intel has appointed an ambitious new CEO while garnering huge investments from the US government, SoftBank (SFTBY), and Nvidia itself. These developments have driven the stock higher this year, outperforming an impressive group of seven stocks. AMD has had similar success, but Intel’s recent investment wins have made the company’s stock even more interesting in the new year.
Additionally, AMD faces headwinds as a broad range of technology stocks decline due to concerns about Oracle’s funding issues. As a result, stock prices have fallen recently. However, the ongoing AI boom has increased demand for AMD’s AI-focused data center components such as CPUs and graphics cards. This boom is expected to continue into 2025, pushing AMD’s stock price even higher.
Which stocks do you expect to rise in 2026?
Both AMD and INTC stocks are likely to continue their bull run into 2026, but there is no doubt that one of the stocks will perform better. The expected growth of the AI chip market highlights the importance of AI technology to Intel and AMD. Going into the new year, both sides have contrasting predictions that could paint a picture of a clear winner.
The analyst consensus for INTC is Bearish, as reflected in its price target and rating. Loop Capital has the better price target accuracy (99.65), but Rosenblatt and JPMorgan also have modest targets of $25 and $30, respectively. Company B of A Securities recently upgraded its rating, but still maintains a conservative price target of $34. Trust Securities has independently set a somewhat optimistic price target of $39.
On the contrary, many analysts recommend acquiring AMD with a target price above the current market price. Stifel has the highest price target accuracy ever (97) and a $280 target. Benchmark, which has a lower overall score, has a target of $325. Raymond James has set a low price target of $200, indicating a cautious stance. The accuracy of Stifel’s price predictions suggests confidence in the target for AMD stock, making AMD a better investment choice than Intel for 2026 at this point.
