AMD vs Intel in 2026: Which Stock to Buy Amid Market Dip?
A sharp selloff in semiconductor stocks has triggered a critical buying decision for investors. Both Advanced Micro Devices (AMD) and Intel (INTC) are down sharply, with AMD hit hardest, as the sector extends losses from last week. Despite the dip, both chip giants—each with major AI partnerships—are rated as buys, forcing a high-stakes choice for portfolios in 2026.
The Case for AMD
Advanced Micro Devices (AMD) stock hasn’t been doing well this year. Thus far, it has declined by 8% after what was a terrific performance in 2025, when it skyrocketed by 77%. Fortunately, the company has been showing signs of progress with its growth rate accelerating in recent years. There could be some catalysts in the latter part of the year that could spark a rally for AMD stock.
In the latter half of 2026, the company’s Helios artificial intelligence (AI) rack is expected to launch. The rack includes AMD’s latest chips and is designed for AI workloads. CEO Lisa Su also expects the company to generate revenue from its new MI450 as early as the third quarter, and for it to ramp up afterwards. This could provide a solid revenue stream to go with AMD’s already solid earnings of late, leading the stock to a solid rebound to match 2025.
Investors are cautious following AMD’s projected $9.8 billion in first-quarter sales, raising concerns about growth amidst broader tech valuation adjustments. However, currently trading at $195, AMD’s analysts remain mostly bullish. Wall Street shows a range of price targets from $200 to $325 for the stock. Stifel and Benchmark lead with strong Buy ratings, while CNN surveys reveal that none of the top firms covering AMD stock have given it a sell rating.
The Case for Intel
Meanwhile, Intel Corporation (INTC) is facing renewed scrutiny as concerns grow over its reliance on its traditional CPU business. The concerns particularly come as the broader PC market shows signs of weakness. Additionally, Intel is also experiencing more and more competition at the same time. Advanced Micro Devices is still gaining ground in server CPUs, and Arm-based designs are becoming more popular in both data centers and consumer devices.
However, many analysts are cutting the slack on INTC. After all, the semiconductor company was placed under new leadership last year and is still in a transitional phase. Intel’s foundry business is still the most positive thing about the company. Furthermore, its investments in new AI-focused firms show promise and could help fuel revenue and gains for Intel. Intel’s collaboration with CrowdStrike is pivotal for integrating AI security into its PC platforms, emphasizing the importance of AI workload protection.
On the Street, analysts are mixed on Intel, with varied price targets and ratings reflecting uncertainty. Analysts present a mixed outlook for Intel, with price targets ranging from $25 to $50, and recommendations spanning from Sell to Neutral.
The Final Call
After comparing both bull cases, AMD appears to be a better choice for alternative AI stock investors in 2026. AMD has shown consistency, while Intel (INTC) is still stabilizing from its new leadership. Further, stock experts appear much more optimistic about an AMD rebound than an INTC one. While this can change as 2026 progresses, right now Advanced Micro Devices is in the lead.
