TD Cowen reiterates Buy rating on AMD stock ahead of Helios launch

Investing.com - TD Cowen has reiterated its Buy rating and $290.00 price target on AMD (NASDAQ:AMD) stock, naming it among its "Best Ideas 2026" as the company prepares for its Helios AI platform launch. The chipmaker’s shares currently trade at $222.95, having surged 81.94% year-to-date despite recent volatility.

The firm expressed confidence in AMD’s position in the artificial intelligence compute market despite recent stock price weakness, suggesting the current valuation presents "an attractive entry point" for investors ahead of significant product launches. With analyst targets ranging from $178 to $380, InvestingPro data shows AMD is trading above its calculated Fair Value, reflecting high market expectations for its AI initiatives.

TD Cowen acknowledged potential volatility in the AI sector but emphasized AMD’s hardware roadmap, progress in developing its ROCm software ecosystem, and customer wins as factors reinforcing its positive outlook on the company’s AI compute strategy. This optimism aligns with InvestingPro data showing 17 analysts have revised earnings upward for upcoming periods, with revenue growth at an impressive 31.83% over the last twelve months.

The research firm specifically highlighted the upcoming Helios rack and MI450 products as marking "a key inflection in AMD’s story beginning in mid-2026," recommending investors own the stock ahead of this anticipated growth phase.

TD Cowen projects AMD’s quarterly earnings per share will reach a run rate exceeding $10 by the fourth quarter of 2026, representing approximately double the year-over-year and quarter-over-quarter growth, with the stock currently trading at less than 10 times the firm’s estimated 2030 earnings per share.

In other recent news, Advanced Micro Devices (AMD) has been involved in several notable developments. Hewlett Packard Enterprise (HPE) will adopt AMD’s Helios rack-scale AI architecture, aiming to advance open, scalable AI infrastructure. This collaboration integrates AMD EPYC CPUs, Instinct GPUs, and Pensando networking, promising significant performance enhancements. Meanwhile, cloud infrastructure provider Vultr is set to deploy 24,000 AMD Instinct MI355X GPUs at its new data center in Springfield, Ohio, as part of its strategic partnership with AMD to expand AI capabilities.

Additionally, Zyphra has developed its first large-scale Mixture-of-Experts model, ZAYA1, entirely on AMD hardware, showcasing the capabilities of AMD’s GPUs and networking solutions. OpenAI has entered into a partnership with Thrive Holdings, taking an ownership stake to boost enterprise AI adoption, focusing on accounting and IT services. In terms of financial analysis, Raymond James has assumed coverage of AMD with an Outperform rating, recognizing the company’s leadership in CPUs, APUs, and GPUs across various markets. These recent developments highlight AMD’s active role in advancing AI technology and infrastructure.

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