NEW YORK — Advanced Micro Devices Inc. (NASDAQ: AMD) shares pulled back sharply Tuesday, dropping more than 5% to around $434 as investors took profits after a strong run driven by artificial intelligence demand. The decline raises the familiar question for investors: Is AMD stock a buy or sell in 2026? Wall Street's consensus leans heavily toward buy, with analysts citing explosive data center growth, market share gains and a compelling long-term AI roadmap even as valuations remain elevated.

AMD reported standout first-quarter 2026 results in early May, with revenue climbing 38% year-over-year to $10.3 billion and adjusted earnings per share of $1.37, beating estimates. Data center revenue surged 57% to a record $5.8 billion, fueled by strong demand for EPYC CPUs and Instinct MI300 series accelerators. The company raised its full-year outlook and guided second-quarter revenue to approximately $11.2 billion, well above expectations.

CEO Lisa Su highlighted accelerating server growth and strong customer engagement around next-generation MI350 and MI400 series products. Management expressed increasing confidence in reaching tens of billions of dollars in data center AI revenue in 2026 and beyond, targeting long-term growth well above 80% in key segments.

Analyst Consensus: Strong Buy with Rising Targets

As of mid-May 2026, 44........

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