TD Cowen has named AMD one of its “Best Ideas 2026,” arguing that the upcoming Helios rack-scale platform will “ignite AMD’s AI business” and mark a major turning point for the chipmaker. 

The firm’s analyst Joshua Buchalter reiterated a Buy rating and a $290 price target on the stock, calling the recent sell-off an “attractive entry point.”

According to TD Cowen, “AI compute spending will prove durable and AMD has cemented itself as a winner,” despite rising competitive scrutiny and ongoing debate about an “AI bubble.” 

The analyst stated that AMD is being judged more harshly than rivals, writing that the company “has garnered more bearish sentiment than deserved and than peers.”

Central to their bullish view is the mid-2026 rollout of AMD’s Helios rack and MI450 accelerator. 

TD Cowen argues these products “will mark a key inflection in AMD’s story,” with 4Q26 EPS expected to reach “a >$10 run-rate, or up ~2x… Y/Y and Q/Q.” 

The firm models $89 billion in Instinct sales by 2030, representing a 67% CAGR, adding that even this forecast “falls below AMD’s guided >80% CAGR.”

On investor concerns surrounding AMD’s OpenAI exposure, TD Cowen says the chipmaker is being “unfairly punished,” noting its expected revenue tied to OpenAI in 2027 is “roughly the same” as peers.

Buchalter also points to AMD’s overlooked server and PC businesses, arguing they “remain an important part of AMD’s core business” and will benefit as AI drives demand for real-time inference.