Analyst Backs AMD for 2026 as AI Demand Lifts Revenue 40%
Updated
Updated · The Motley Fool · Aug 4
Analyst Backs AMD for 2026 as AI Demand Lifts Revenue 40%
3 articles · Updated · The Motley Fool · Aug 4
Summary
AMD is the preferred 2026 chip stock in the comparison, with analysts projecting $49.6 billion in sales and $8.7 billion in net income as AI demand accelerates.
34.6 billion dollars of 2025 revenue and 34% growth give AMD a stronger base than Intel, which posted $52.9 billion of revenue but still logged a $267 million net loss and negative $4.9 billion free cash flow.
OpenAI and Anthropic deployments, a late-2025 OpenAI supply deal potentially worth billions, and the ZT Systems design acquisition underpin AMD's push in AI accelerators and infrastructure.
Intel is still drawing optimism from foundry and AI partnerships with Tesla, SpaceX, Nvidia and Google, but 2026 forecasts still point to an $11 billion net loss despite expected 19% sales growth to $62.3 billion.
Export controls on advanced AI chips to China remain a key risk for AMD, while Intel faces shareholder lawsuits and the heavy cost of remaking itself around U.S. chip manufacturing and AI silicon.