1 Must-Have AI ETF to Invest in Now for $70 by 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 13 2025
0mins
Should l Buy AMD?
Source: NASDAQ.COM
AI's Impact on Stock Market: Artificial intelligence has significantly driven stock market returns in 2025, and this trend is expected to continue into 2026, making it crucial for investors to adjust their portfolios accordingly.
Roundhill Generative AI and Technology ETF: The Roundhill ETF, which focuses on top AI stocks, has shown impressive returns, outperforming the S&P 500, but it carries high volatility and management fees that investors should consider.
Top Holdings and Performance: The ETF's top five holdings, including Alphabet and Nvidia, have delivered substantial returns, but investors should also explore other promising AI stocks within the ETF for potential gains.
Investment Recommendations: While the Roundhill ETF has performed well, analysts suggest considering other stocks identified by the Motley Fool Stock Advisor for potentially higher returns, emphasizing the importance of diversification in investment strategies.
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Analyst Views on AMD
Wall Street analysts forecast AMD stock price to rise
33 Analyst Rating
25 Buy
8 Hold
0 Sell
Strong Buy
Current: 198.620
Low
210.00
Averages
289.13
High
377.00
Current: 198.620
Low
210.00
Averages
289.13
High
377.00
About AMD
Advanced Micro Devices, Inc. is a global semiconductor company. The Company is focused on high-performance computing, graphics and visualization technologies. Its segments include Data Center, Client and Gaming, and Embedded. Data Center segment includes artificial intelligence (AI) accelerators, microprocessors (CPUs) for servers, graphics processing units (GPUs), accelerated processing units (APUs), data processing units (DPUs), Field Programmable Gate Arrays (FPGAs), smart network interface Cards (SmartNICs) and Adaptive system-on-Chip (SoC) products for data centers. Client and Gaming segment includes CPUs, APUs, chipsets for desktops and notebooks, discrete GPUs, and semi-custom SoC products and development services. Embedded segment includes embedded CPUs, GPUs, APUs, FPGAs, system on modules (SOMs), and Adaptive SoC products. It markets and sells its products under the AMD trademark. Its products include AMD EPYC, AMD Ryzen, AMD Ryzen PRO, Virtex UltraScale+, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Global Stock Markets Plunge as Oil Prices Surge Amid Iran Conflict
- Stock Market Decline: The S&P 500 index fell by 2.18%, reaching a 3.25-month low, indicating market concerns over the Iran conflict that may lead to decreased investor confidence and increased volatility.
- Surge in Oil Prices: WTI crude oil prices rose over 8% to an 8.5-month high due to Iran's threats to close the Strait of Hormuz, potentially causing long-term disruptions in global energy markets and raising inflation expectations.
- Rising Bond Yields: The 10-year German bund yield climbed to a 2.5-week high of 2.814%, reflecting market worries about future inflation, which may prompt investors to shift towards bonds for safety.
- Economic Data Focus: This week, the market will focus on U.S. employment data and economic indicators, with the ADP employment change expected to rise by 40,000 and the ISM services index anticipated to slip slightly, indicating potential economic slowdown.
See More
Meta Increases AI Spending, Benefiting AMD and Dell
- Surge in Meta's Investment: Meta's capital spending is set to reach $135 billion in 2026, nearly double that of 2025, which will drive demand for top chip and server suppliers, particularly benefiting AMD and Dell.
- AMD Partnership Opportunity: The new agreement between Meta and AMD to deploy AMD's Instinct GPUs and Venice EPYC CPUs in the second half of 2026 not only validates AMD's innovation in data center chips but also positions it at the center of the global AI buildout.
- Dell's Server Demand: The increase in Meta's capital spending will boost the demand for computing hardware, with Dell, as the world's leading server provider, expected to directly benefit from Meta's infrastructure expansion, particularly in AI infrastructure spending.
- Infrastructure Growth Potential: Dell's infrastructure solutions revenue grew 24% year-over-year in the latest quarter, with servers and networking up 37%, and an AI server order backlog hitting $12.3 billion, showcasing its competitive edge in high-performance server customization and timely delivery.
See More
Global Stock Markets Plunge as Oil Prices Surge Amid Iran Conflict
- Market Decline: The S&P 500 index fell by 1.82%, the Dow Jones Industrial Average dropped by 2.07%, and the Nasdaq 100 decreased by 1.78%, marking a 2.5-month low for the S&P 500, indicating growing concerns about the global economic outlook.
- Surging Oil Prices: WTI crude oil prices surged over 7% to an 8.5-month high due to escalating conflict in Iran, raising fears of energy supply disruptions and increasing inflation expectations, which negatively impact stock market performance.
- Rising Bond Yields: The 10-year German bund yield reached a 2.5-week high of 2.814%, while the 10-year UK gilt yield climbed to a 3-week high of 4.536%, reflecting market concerns over future inflation, further pressuring stock prices.
- Earnings Outlook: Despite market volatility, 73% of S&P 500 companies exceeded earnings expectations, with Q4 earnings growth projected at 8.4%, indicating strong corporate fundamentals, yet market sentiment remains subdued.
See More
February's Most Searched Stock Rankings Shift
- Stock Ranking Changes: In February, stocks like Palantir, AMD, and Amazon re-entered the top ten, indicating sustained market interest, particularly as Palantir rebounded to fourth place after not ranking in the top 12 in January, reflecting investor confidence in its growth potential.
- Micron and SanDisk Rise: Micron jumped from 11th to 4th place, while SanDisk moved from 12th to 10th, showcasing strong market interest in the semiconductor sector, especially against a backdrop of robust tech stock performance, which may further drive investment enthusiasm.
- Nvidia's Upward Trend: Nvidia's search ranking increased by two spots in February, demonstrating investor recognition of its technological innovations and market performance, despite a year-to-date return of -3.4%, its one-year return stands at 60%, indicating continued favor for its long-term growth potential.
- iShares Silver Trust Decline: Although the iShares Silver Trust remained in the top five in February, it dropped two places, reflecting market sensitivity to silver price fluctuations, as investors may be seeking assets with greater growth potential.
See More
AMD Strengthens Domestic Market Position Amid Sector Volatility
- Momentum Score Increase: AMD's momentum score rose from 88.93 to 90.84, placing it in the top 10% of the market, indicating steady progress in securing critical infrastructure and product milestones despite broader sector volatility.
- Robust Fundamentals: While the stock is down 7.26% year-to-date, AMD boasts an impressive quality score of 93.86, reflecting superior operational efficiency and financial health compared to peers, which bolsters investor confidence.
- AI Capacity Expansion: AMD recently launched the Ryzen AI 400 Series, the world's first desktop processors designed for Copilot+ experiences, marking a significant advancement in the company's artificial intelligence capabilities and expected to drive future market demand.
- Stock Price Analysis: Despite a 7.26% decline year-to-date, AMD's stock has risen 22.36% over the past six months and 98.90% over the year, indicating a positive long-term trend, although it faces some short-term pressures.
See More
Nvidia Invests $4 Billion to Advance AI Infrastructure
- Major Investment: Nvidia has announced a $4 billion investment in optical networking companies to support R&D and future capacity expansion for AI infrastructure, demonstrating its strong commitment to the AI sector.
- Partnership Agreements: The agreements with Lumentum and Coherent include multibillion-dollar purchase commitments, ensuring supply for future laser and optical networking components, which reduces expansion risks and enhances data transfer efficiency in data centers.
- 6G Strategic Initiative: Nvidia is partnering with telecom and technology firms to advance AI-native 6G network designs, planning to build future wireless systems around software-based architectures that enhance network intelligence and update capabilities.
- Market Reaction: Despite Nvidia's strong earnings failing to prevent declines in semiconductor and tech stocks, shares of Lumentum and Coherent rose significantly, with Lumentum climbing 11% and Coherent reaching a record high following the announcement.
See More
Global Stock Markets Plunge as Oil Prices Surge Amid Iran Conflict
- Stock Market Decline: The S&P 500 index fell by 2.18%, reaching a 3.25-month low, indicating market concerns over the Iran conflict that may lead to decreased investor confidence and increased volatility.
- Surge in Oil Prices: WTI crude oil prices rose over 8% to an 8.5-month high due to Iran's threats to close the Strait of Hormuz, potentially causing long-term disruptions in global energy markets and raising inflation expectations.
- Rising Bond Yields: The 10-year German bund yield climbed to a 2.5-week high of 2.814%, reflecting market worries about future inflation, which may prompt investors to shift towards bonds for safety.
- Economic Data Focus: This week, the market will focus on U.S. employment data and economic indicators, with the ADP employment change expected to rise by 40,000 and the ISM services index anticipated to slip slightly, indicating potential economic slowdown.
See More
Meta Increases AI Spending, Benefiting AMD and Dell
- Surge in Meta's Investment: Meta's capital spending is set to reach $135 billion in 2026, nearly double that of 2025, which will drive demand for top chip and server suppliers, particularly benefiting AMD and Dell.
- AMD Partnership Opportunity: The new agreement between Meta and AMD to deploy AMD's Instinct GPUs and Venice EPYC CPUs in the second half of 2026 not only validates AMD's innovation in data center chips but also positions it at the center of the global AI buildout.
- Dell's Server Demand: The increase in Meta's capital spending will boost the demand for computing hardware, with Dell, as the world's leading server provider, expected to directly benefit from Meta's infrastructure expansion, particularly in AI infrastructure spending.
- Infrastructure Growth Potential: Dell's infrastructure solutions revenue grew 24% year-over-year in the latest quarter, with servers and networking up 37%, and an AI server order backlog hitting $12.3 billion, showcasing its competitive edge in high-performance server customization and timely delivery.
See More
Global Stock Markets Plunge as Oil Prices Surge Amid Iran Conflict
- Market Decline: The S&P 500 index fell by 1.82%, the Dow Jones Industrial Average dropped by 2.07%, and the Nasdaq 100 decreased by 1.78%, marking a 2.5-month low for the S&P 500, indicating growing concerns about the global economic outlook.
- Surging Oil Prices: WTI crude oil prices surged over 7% to an 8.5-month high due to escalating conflict in Iran, raising fears of energy supply disruptions and increasing inflation expectations, which negatively impact stock market performance.
- Rising Bond Yields: The 10-year German bund yield reached a 2.5-week high of 2.814%, while the 10-year UK gilt yield climbed to a 3-week high of 4.536%, reflecting market concerns over future inflation, further pressuring stock prices.
- Earnings Outlook: Despite market volatility, 73% of S&P 500 companies exceeded earnings expectations, with Q4 earnings growth projected at 8.4%, indicating strong corporate fundamentals, yet market sentiment remains subdued.
See More
February's Most Searched Stock Rankings Shift
- Stock Ranking Changes: In February, stocks like Palantir, AMD, and Amazon re-entered the top ten, indicating sustained market interest, particularly as Palantir rebounded to fourth place after not ranking in the top 12 in January, reflecting investor confidence in its growth potential.
- Micron and SanDisk Rise: Micron jumped from 11th to 4th place, while SanDisk moved from 12th to 10th, showcasing strong market interest in the semiconductor sector, especially against a backdrop of robust tech stock performance, which may further drive investment enthusiasm.
- Nvidia's Upward Trend: Nvidia's search ranking increased by two spots in February, demonstrating investor recognition of its technological innovations and market performance, despite a year-to-date return of -3.4%, its one-year return stands at 60%, indicating continued favor for its long-term growth potential.
- iShares Silver Trust Decline: Although the iShares Silver Trust remained in the top five in February, it dropped two places, reflecting market sensitivity to silver price fluctuations, as investors may be seeking assets with greater growth potential.
See More
AMD Strengthens Domestic Market Position Amid Sector Volatility
- Momentum Score Increase: AMD's momentum score rose from 88.93 to 90.84, placing it in the top 10% of the market, indicating steady progress in securing critical infrastructure and product milestones despite broader sector volatility.
- Robust Fundamentals: While the stock is down 7.26% year-to-date, AMD boasts an impressive quality score of 93.86, reflecting superior operational efficiency and financial health compared to peers, which bolsters investor confidence.
- AI Capacity Expansion: AMD recently launched the Ryzen AI 400 Series, the world's first desktop processors designed for Copilot+ experiences, marking a significant advancement in the company's artificial intelligence capabilities and expected to drive future market demand.
- Stock Price Analysis: Despite a 7.26% decline year-to-date, AMD's stock has risen 22.36% over the past six months and 98.90% over the year, indicating a positive long-term trend, although it faces some short-term pressures.
See More
Nvidia Invests $4 Billion to Advance AI Infrastructure
- Major Investment: Nvidia has announced a $4 billion investment in optical networking companies to support R&D and future capacity expansion for AI infrastructure, demonstrating its strong commitment to the AI sector.
- Partnership Agreements: The agreements with Lumentum and Coherent include multibillion-dollar purchase commitments, ensuring supply for future laser and optical networking components, which reduces expansion risks and enhances data transfer efficiency in data centers.
- 6G Strategic Initiative: Nvidia is partnering with telecom and technology firms to advance AI-native 6G network designs, planning to build future wireless systems around software-based architectures that enhance network intelligence and update capabilities.
- Market Reaction: Despite Nvidia's strong earnings failing to prevent declines in semiconductor and tech stocks, shares of Lumentum and Coherent rose significantly, with Lumentum climbing 11% and Coherent reaching a record high following the announcement.
See More
