Shay Boloor, the Chief Market Strategist at Futurum Equities, has highlighted three key factors that could determine the success of Advanced Micro Devices Inc. (NASDAQ:AMD) in 2026.



In a post on X on Tuesday, Boloor began by emphasizing the importance of AMD’s CPUs, which he described as the company’s “cash engine.” He said that these data center CPUs will be a key growth driver for AMD, benefiting from tight supply, strong hyperscaler demand, possible price hikes, and over 50% server CPU growth, providing operating leverage as GPUs scale. 



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<blockquote>3 WAYS $AMD BECOME A SUCCESSFUL 2026 STORY 1. Data center CPUs do the heavy lifting The most underappreciated part of the story is CPUs which are AMD's cash engine. Tight supply, strong hyperscaler demand, potential price increases &amp; 50%+ server CPU growth create operating… pic.twitter.com/c1VwSdB31V— Shay Boloor (@StockSavvyShay) January 13, 2026</blockquote>
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Secondly, he pointed out that Helios, a shipment test using real customer deployments and sustained volumes, would determine whether AMD can move from a component supplier to a full platform vendor.



Lastly, the strategist says that AMD doesn't need to “beat” Nvidia (NASDAQ:NVDA); it needs major customers like Microsoft (NASDAQ:MSFT), Meta Platforms (NASDAQ:META), Oracle Corporation (NYSE:ORCL) and Tesla (NASDAQ:TSLA) to adopt procurement rules that avoid single-vendor AI infrastructure, making AMD part of the default architecture rather than a deal-by-deal competitor.



<h2>Trump Tariffs Hit AI Chips As AMD Pushes Ahead</h2>



Boloor’s post comes as President Donald Trump, on Wednesday, imposed a 25% tariff on select high-end AI chips from companies like Nvidia and AMD is part of a broader strategy to reduce U.S. dependence on foreign-made chips, posing economic and security risks.



Nevertheless, AMD has been actively taking on Nvidia in the AI hardware market. The company recently rolled out new chips and faster systems aimed at the data center market, challenging Nvidia’s dominance in the sector.



AMD’s CEO, Lisa Su, has also predicted a massive increase in global compute demand, far beyond data centers. She believes that the world is entering the “yottascale” era of computing, which will require an unprecedented expansion of global computing capacity.



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Benzinga's Edge Rankings place AMD in the 85th percentile for quality and the 91st percentile for momentum, reflecting its strong performance in both areas. Benzinga’s screener allows you to compare AMD’s performance with its peers.



Price Action: Over the past year, AMD stock climbed 86.40%, as per data from Benzinga Pro. On Wednesday, the stock edged 1.19% higher to close at $223.60.



Image via Shutterstock



Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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Shay Boloor, Chief Market Strategist at Futurum Equities, identifies three key factors for AMD's success in 2026: the importance of data center CPUs as a cash engine, the significance of Helios for transitioning to a full platform vendor, and the need for major customers to adopt AMD in their AI infrastructure. Despite a 25% tariff on AI chips, AMD continues to challenge Nvidia in the market, with a notable stock increase of 86.40% over the past year, closing at $223.60 recently.

- Shay Boloor, Chief Market Strategist at Futurum Equities, identifies three key factors for AMD's success in 2026, highlighting the critical role of data center CPUs as a growth driver.  
- He notes that AMD’s transition from component supplier to full platform vendor relies on the successful execution of the Helios shipment test and engagement with major customers to avoid single-vendor AI infrastructure.  
- Additionally, AMD is navigating challenges posed by Trump's new tariffs on AI chips while aiming to enhance its competitive standing against Nvidia in the data center market.

Top Analyst Says AMD's 2026 Success Depends On These 3 Factors— And It Doesn't 'Need To Beat' Nvidia