A Once-in-a-Decade Investment Opportunity: The Best Artificial Intelligence (AI) Stock to Buy in February 2026

By Harsh Chauhan – Feb 12, 2026 at 9:00AM ESTKey PointsAMD stock fell despite delivering stronger-than-expected growth and guidance.The company's strong earnings growth potential suggests it could become a multibagger by 2030.These 10 Stocks Could Mint the Next Wave of Millionaires ›NASDAQ: AMDAdvanced Micro DevicesMarket Cap$348BToday's Changeangle-down(-0.88%) $1.89Current Price$211.69Price as of February 12, 2026 at 10:50 AM ETThis artificial intelligence (AI) stock fell hard following its latest quarterly report, giving savvy investors a great opportunity to buy before it starts soaring.Spending on artificial intelligence (AI) infrastructure is poised to remain robust in the coming years, with McKinsey estimating a whopping $7 trillion will be spent on data centers by 2030 to build enough computing power to support workloads in the cloud. There are several ways you can take advantage of the massive AI infrastructure opportunity during this decade. From Nvidia to Broadcom to Micron Technology, investors are spoilt for choice to capitalize on booming AI spending on data centers. However, now is a good time to take a closer look at Advanced Micro Devices (AMD 0.88%), an emerging force in the AI chip market that seems like a terrific buy this month. Image source: AMD AMD's latest pullback is a buying opportunity AMD released its fourth-quarter 2025 results on Feb. 3. Surprisingly, AMD stock fell a whopping 17% the following day despite the company's better-than-expected results and guidance. ExpandNASDAQ: AMDAdvanced Micro DevicesToday's Change(-0.88%) $-1.89Current Price$211.69Key Data PointsMarket Cap$348BDay's Range$211.02 - $218.4052wk Range$76.48 - $267.08Volume381KAvg Vol39MGross Margin45.99% This seems like a great opportunity for investors to buy AMD stock on the cheap to take advantage of the massive AI infrastructure opportunity. After all, AMD is forecasting a 32% year-over-year increase in revenue in the current quarter, along with a non-GAAP (generally accepted accounting principles) gross margin of 55%, an increase of one point from the prior year. The chip designer's adjusted earnings increased by 26% in 2025 to $4.17 per share. So, the Q1 guidance indicates that it is on track to clock a bigger earnings jump in 2026, driven by healthy growth in revenue and an uptick in the margin. Not surprisingly, analysts are bullish regarding AMD's earnings growth for the next three years. AMD EPS Estimates for Current Fiscal Year data by YCharts Importantly, the company can sustain this terrific momentum beyond 2028. That's because it stands to gain from AI adoption on multiple fronts -- data centers, personal computers (PCs), and embedded processors deployed in networking, storage, industrial, automotive, and other applications. What's more, AMD designs not just graphics cards but also central processing units (CPUs) that go into these applications. AMD sees its data center addressable opportunity growing from $200 billion last year to a whopping $1 trillion in 2030. As a result, the company anticipates its revenue to grow at an annual rate of more than 35% through 2030, while earnings per share could jump to more than $20 during this time frame. The stock could be a multibagger by the end of the decade AMD is trading at just over $200 per share following its latest slide. It trades at a price/earnings-to-growth ratio (PEG ratio) of 0.65, according to Yahoo! Finance, which means it's undervalued with respect to the annual earnings growth it can deliver over the next five years. We have already seen that analysts are expecting impressive growth in AMD's bottom line through 2028. Even if it clocks a slower earnings growth rate of 20% in 2029 and 2030, its bottom line could indeed hit $20 per share by the end of the decade (in line with the company's expectations). Multiplying the projected earnings in 2030 by the tech-laden Nasdaq-100 index's forward earnings multiple of 26 suggests this semiconductor stock could jump past $500. So, AMD stock can become a multibagger, which is why investors should consider buying it following its steep decline.Read NextFeb 10, 2026 •By Robert IzquierdoBetter Artificial Intelligence Stock: AMD vs. AlphabetFeb 10, 2026 •By Will HealyPrediction: This Artificial Intelligence (AI) Stock Will Recover Faster Than ExpectedFeb 9, 2026 •By David Jagielski, CPAAMD's Growth Rate is Declining.

Should Investors Be Worried?Feb 8, 2026 •By Adria CiminoCathie Wood Goes AI Bargain Hunting: She Just Bought a Stock That Crashed 17% in 1 Trading Session and a Stock That's Dropped 50% From Its Peak.Feb 8, 2026 •By Anthony Di PizioAdvanced Micro Devices (AMD) Stock Just Plunged. Buy the Dip, or Run for the Hills?Feb 7, 2026 •By Geoffrey SeilerAMD Shares Slide Despite Strong Growth.

Is It Time to Buy the Stock on the Dip?About the AuthorHarsh Chauhan is a contributing Motley Fool technology analyst covering semiconductors, consumer electronics, artificial intelligence, and software. Harsh previously worked as a journalist for CCN Markets covering crypto and macroeconomics, a contributor at Capital 10x covering metals, mining, and industrial stocks, and a research associate at Zacks Investment Research. He holds a bachelor’s degree in commerce from St. Xavier’s College in Kolkata, India.TMFTechJunk13X@techjunk13Stocks MentionedAdvanced Micro DevicesNASDAQ: AMD$211.69 (0.88%) $1.89*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.