Forget Nvidia (NVDA) — Focus on This Top AI Stock Instead in 2026

Nvidia (NVDA) has led the artificial intelligence (AI) boom for the past few years, powering everything from large language models to massive data centers. As we move into 2026, NVDA is still a powerhouse, but its explosive growth is slowing, and competition is picking up. Thus, investors are looking for the next big winner in AI, and that stock is Advanced Micro Devices (AMD).Claim 50% Off TipRanks Premium and Invest with Confidence Unlock hedge-fund level data and powerful investing tools designed to help you make smarter, sharper decisions Stay ahead of the market with the latest news and analysis so your portfolio is always positioned for maximum potential Why Look Beyond Nvidia? Nvidia is still the face of the AI boom, but its share price growth in 2025 has not been as rapid as in recent years. The stock has risen about 30% so far in 2025, which is solid but slower than the gains in other AI companies, which doubled over the same period. Meanwhile, demand for AI compute keeps climbing, and hyperscalers are searching for cheaper, high-performance alternatives. Consequently, rivals such as AMD, Intel (INTC), and custom chips from Amazon (AMZN), Google (GOOGL), and Microsoft (MSFT) are gaining ground. As more options enter the market, Nvidia's pricing power and market share could face pressure. Finally, NVDA stock makes up a large part of major stock indices, so even small drops in its price can drag the market down. Diversifying across other AI-related companies can help reduce that concentration risk. AMD Is Quietly Becoming a Major AI Winner AMD is becoming a major player in the AI market, with support from its open software ecosystem, fast-growing data center business, and several high-profile partnerships. Its data center business has become a key part of its AI strategy. In Q3 2025, the segment hit a record $4.3 billion in revenue, up 22% year-over-year. Importantly, AMD's hardware is now being deployed by major AI players, including Meta (META), Microsoft, OpenAI (PC:OPAIQ), and Oracle (ORCL). While Nvidia dominates AI training, AMD is focusing on the fast-growing AI inference market, which many analysts expect to become even larger than training workloads. AMD's Instinct GPUs are built to deliver strong performance at a lower total cost, making them especially attractive to cloud providers facing rising infrastructure expenses. Looking ahead, management expects AMD's revenue to grow over 35% annually over the next three to five years, a sharp acceleration from its past growth rate. On top of that, the company is gearing up to launch its next‑generation MI400 AI accelerators in 2026. This move could further challenge Nvidia's dominance in data center GPUs. Conclusion Nvidia will stay a major player in AI, but investors looking for other options should keep a close eye on AMD. With rising revenue, expanding market share, and a strong product roadmap heading into 2026, AMD seems to have strong upside potential. Is AMD a Buy or Sell Now? Turning to Wall Street, AMD stock has a Strong Buy consensus rating based on 29 Buys and nine Holds assigned in the last three months. At $279.94, the average AMD price target implies a 31.16% upside potential.