Both Intel (INTC) and Advanced Micro Devices (AMD) stocks became healthy rivals to the dominant Nvidia (NVDA) in the AI stock market race. INTC shares are up 80% YTD while AMD is up 78%, both starkly outperforming Nvidia’s gains. While the latter’s share price remains far more premium than INTC, Intel, and AMD are still looking like better options for investments in 2026. Which will be the better bet?
Intel appointed a new, ambitious CEO while winning massive investments from the US government, SoftBank (SFTBY), and Nvidia itself. Those developments helped push the stock higher this year, even outperforming the magnificent-7 stock grouping. While AMD has seen the same success, Intel’s recent investment wins make its stock a more popular story entering the new year.
Additionally, AMD is facing headwinds amid a broader tech selloff influenced by concerns over Oracle’s funding issues. As a result, its stock has been declining recently. However, the ongoing AI boom has increased the demand for data center components, such as AMD’s AI-focused CPUs and graphics cards. The boom is expected to continue in 2025, sending AMD even higher.
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Which Stock is Forecasted to Move Higher in 2026?
While both AMD and INTC stock will likely continue their bullish runs in 2026, one stock is bound to perform better. The AI chip market’s expected growth underscores the importance of AI technologies for Intel and AMD. Entering the new year, both have contrasting forecasts that could paint the picture of a clear winner.
The consensus among analysts for INTC leans bearish, as reflected in the price targets and ratings. Loop Capital excels in price target accuracy (99.65), while Rosenblatt and JP Morgan also provide conservative targets of $25 and $30, respectively. B of A Securities has recently upgraded its rating but still offers a cautious $34 target. Truist Securities stands alone with a slightly optimistic $39 target.
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On the flip side, most analysts recommend buying AMD, with price targets above the current market price. Stifel, with the highest historical price target accuracy (97), targets $280. Benchmark, with a lower overall score, aims for $325. Raymond James has a lower price target of $200, showing caution. Stifel’s accuracy in price predictions suggests confidence in their target for AMD stock, making it, as of now, the better choice over Intel to invest in heading into 2026.