U.S. Stocks Rally as Strong Earnings Lift Nasdaq 1.2%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 15 2026
0mins
Should l Buy AMD?
Source: Benzinga
- Semiconductor Surge: Taiwan Semiconductor's blockbuster earnings reignited enthusiasm, leading AMD and ASML shares to rise about 6% each, reflecting a robust recovery in the AI supply chain and boosting market confidence.
- Strong Financials: Goldman Sachs and Morgan Stanley saw their stocks rise by 4% and 5% respectively after reporting earnings, reassuring investors about the profitability of major financial institutions amid mixed sector results.
- Regional Bank Rebound: The SPDR S&P Regional Banking ETF's surge helped lift small-cap stocks, with the Russell 2000 index hitting record highs for the tenth consecutive session, pushing year-to-date gains above 7%, indicating optimism towards small businesses.
- Positive Economic Data: Initial jobless claims fell to 198,000, significantly below the forecast of 215,000, showcasing the resilience of the U.S. labor market and further bolstering investor confidence in economic recovery.
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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: 200.120
Low
210.00
Averages
289.13
High
377.00
Current: 200.120
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.
AMD Stock Pullback Presents Buying Opportunity
- Strong Quarterly Performance: Despite a more than 17% drop in AMD's stock following its Q4 2025 earnings report, the company achieved impressive revenue and earnings growth, projecting a 32% year-over-year increase in Q2 2026 to $9.8 billion, indicating robust market demand and business resilience.
- Margin Improvement: AMD anticipates a non-GAAP gross margin of 55% in the current quarter, up 2 percentage points from last year, primarily driven by the launch of its latest AI data center processors, reflecting successful positioning in high-margin product lines.
- Market Reaction Analysis: Although AMD's earnings and outlook exceeded Wall Street expectations, the stock fell 4.8% as investors took profits, creating an opportunity for new investors to enter at a relatively attractive valuation with a current P/E ratio of 31, indicating potential investment value.
- Future Growth Potential: Analysts forecast a 60% increase in AMD's earnings for both 2026 and 2027, significantly above the S&P 500 average, and if AMD trades at 22 times earnings in three years, its stock price could reach $309, representing a 51% increase from current levels, showcasing strong long-term growth potential.
See More
AMD's Future Outlook: New Opportunities in AI Market
- Major Deal Prospects: Following its agreement with OpenAI, AMD has signed a contract with Oracle to supply 50,000 GPUs, indicating its growing appeal in the AI market and the potential to attract more major clients, which could drive revenue growth.
- AI Powerhouse Emergence: Through its collaboration with Tata Consultancy Services, AMD's Helios architecture will be utilized in AI data centers, further solidifying its position in the AI space; while not yet at Nvidia's scale, it is becoming a significant contender.
- Stock Recovery Expectations: Despite facing market corrections, analysts predict AMD's stock could rebound to $288 per share by the end of 2026, nearly 40% above its current price, reflecting confidence in its future potential.
- Industry-Wide Impact: AMD's performance is influenced by the overall AI sector; although currently under pressure, its ongoing investments and partnerships in AI will lay the groundwork for future growth, enhancing market confidence in its stock.
See More
Recent Updates on AMD and AI Stocks
- AMD Stock Performance: On February 17, 2026, AMD's stock price rose by 1.54% in after-market trading, reflecting market optimism regarding its growth potential, particularly in the AI sector where it continues to invest and innovate.
- AI Stock Trends: The video highlights other AI stocks that are gaining attention, indicating strong investor interest in artificial intelligence technologies, which could drive up stock prices and impact the overall tech sector's performance.
- Market Reaction Analysis: As AI technologies advance, the demand for AMD and other AI companies is expected to continue growing, potentially leading to higher revenue expectations and increased investor confidence.
- Video Content Overview: The video provides an analysis of the latest updates on AMD and other AI stocks, encouraging viewers to subscribe for more information, showcasing the content creator's efforts in promoting audience engagement and market education.
See More
Meta Signs Multi-Billion Dollar Chip Deal with Nvidia, Strengthening AI Infrastructure
- Major Deal Signed: Meta has signed a new agreement with Nvidia to purchase millions of chips, including GPUs and CPUs, with the deal potentially worth tens of billions of dollars, highlighting Meta's strong reliance on Nvidia products and further solidifying Nvidia's leadership in the AI market.
- Data Center CPU Procurement: This deal marks a significant advancement for Nvidia in the data center CPU market, as Meta, despite developing its own chips, has chosen Nvidia as the backbone of its AI infrastructure, indicating its pursuit of high-performance products.
- Market Competition Landscape: Meta's move alleviates investor concerns about Nvidia losing market share, demonstrating that even amidst a diversified supply chain, Nvidia remains the preferred supplier in the AI space, boosting market optimism regarding Nvidia's upcoming chip launches.
- AI Strategic Focus: Meta's ongoing investment in AI and reliance on Nvidia reflect its strategic intent to drive superintelligence globally, enhancing its competitive edge in social media and advertising clients.
See More
Meta Signs Multi-Billion Dollar Chip Deal with Nvidia
- Massive Investment: Meta has invested billions in artificial intelligence, aiming to enhance its market competitiveness by building data centers and developing large language models, demonstrating its strategic commitment to AI technology and future growth.
- Partnership with Nvidia: Meta signed a new deal with Nvidia to purchase millions of chips, including GPUs and CPUs; while the deal's value remains undisclosed, analysts estimate it could be worth tens of billions, further solidifying Nvidia's leadership in the AI chip market.
- Market Reaction: This deal indicates that despite Meta's development of its own chips and potential sourcing from other suppliers, it has chosen Nvidia as the backbone of its AI infrastructure, boosting investor confidence in Nvidia's market share.
- Technological Edge: Nvidia maintains its market-leading position for GPUs due to its early focus on AI and ongoing technology updates, and this partnership with Meta will further expand its reach into the data center CPU market.
See More
Nvidia Plans $30 Billion Investment in OpenAI Amid Funding Round
- Massive Investment: Nvidia is in discussions to invest up to $30 billion in OpenAI, potentially valuing the AI startup at $730 billion, reflecting strong market confidence in AI technologies.
- Complex Investment Background: This investment is separate from the $100 billion infrastructure agreement announced in September, which involves Nvidia gradually investing in OpenAI to support the rollout of its supercomputing facilities over the coming years.
- Investment Uncertainty: Although Nvidia's $30 billion investment is not finalized and details are still subject to change, company executives have indicated a commitment to participate in OpenAI's next funding round, highlighting ongoing interest in the AI sector.
- Accelerated Fundraising Discussions: OpenAI is also engaging with other investors for fundraising discussions, with total funding potentially reaching $100 billion, indicating strong market interest and confidence in its future development.
See More
AMD Stock Pullback Presents Buying Opportunity
- Strong Quarterly Performance: Despite a more than 17% drop in AMD's stock following its Q4 2025 earnings report, the company achieved impressive revenue and earnings growth, projecting a 32% year-over-year increase in Q2 2026 to $9.8 billion, indicating robust market demand and business resilience.
- Margin Improvement: AMD anticipates a non-GAAP gross margin of 55% in the current quarter, up 2 percentage points from last year, primarily driven by the launch of its latest AI data center processors, reflecting successful positioning in high-margin product lines.
- Market Reaction Analysis: Although AMD's earnings and outlook exceeded Wall Street expectations, the stock fell 4.8% as investors took profits, creating an opportunity for new investors to enter at a relatively attractive valuation with a current P/E ratio of 31, indicating potential investment value.
- Future Growth Potential: Analysts forecast a 60% increase in AMD's earnings for both 2026 and 2027, significantly above the S&P 500 average, and if AMD trades at 22 times earnings in three years, its stock price could reach $309, representing a 51% increase from current levels, showcasing strong long-term growth potential.
See More
AMD's Future Outlook: New Opportunities in AI Market
- Major Deal Prospects: Following its agreement with OpenAI, AMD has signed a contract with Oracle to supply 50,000 GPUs, indicating its growing appeal in the AI market and the potential to attract more major clients, which could drive revenue growth.
- AI Powerhouse Emergence: Through its collaboration with Tata Consultancy Services, AMD's Helios architecture will be utilized in AI data centers, further solidifying its position in the AI space; while not yet at Nvidia's scale, it is becoming a significant contender.
- Stock Recovery Expectations: Despite facing market corrections, analysts predict AMD's stock could rebound to $288 per share by the end of 2026, nearly 40% above its current price, reflecting confidence in its future potential.
- Industry-Wide Impact: AMD's performance is influenced by the overall AI sector; although currently under pressure, its ongoing investments and partnerships in AI will lay the groundwork for future growth, enhancing market confidence in its stock.
See More
Recent Updates on AMD and AI Stocks
- AMD Stock Performance: On February 17, 2026, AMD's stock price rose by 1.54% in after-market trading, reflecting market optimism regarding its growth potential, particularly in the AI sector where it continues to invest and innovate.
- AI Stock Trends: The video highlights other AI stocks that are gaining attention, indicating strong investor interest in artificial intelligence technologies, which could drive up stock prices and impact the overall tech sector's performance.
- Market Reaction Analysis: As AI technologies advance, the demand for AMD and other AI companies is expected to continue growing, potentially leading to higher revenue expectations and increased investor confidence.
- Video Content Overview: The video provides an analysis of the latest updates on AMD and other AI stocks, encouraging viewers to subscribe for more information, showcasing the content creator's efforts in promoting audience engagement and market education.
See More
Meta Signs Multi-Billion Dollar Chip Deal with Nvidia, Strengthening AI Infrastructure
- Major Deal Signed: Meta has signed a new agreement with Nvidia to purchase millions of chips, including GPUs and CPUs, with the deal potentially worth tens of billions of dollars, highlighting Meta's strong reliance on Nvidia products and further solidifying Nvidia's leadership in the AI market.
- Data Center CPU Procurement: This deal marks a significant advancement for Nvidia in the data center CPU market, as Meta, despite developing its own chips, has chosen Nvidia as the backbone of its AI infrastructure, indicating its pursuit of high-performance products.
- Market Competition Landscape: Meta's move alleviates investor concerns about Nvidia losing market share, demonstrating that even amidst a diversified supply chain, Nvidia remains the preferred supplier in the AI space, boosting market optimism regarding Nvidia's upcoming chip launches.
- AI Strategic Focus: Meta's ongoing investment in AI and reliance on Nvidia reflect its strategic intent to drive superintelligence globally, enhancing its competitive edge in social media and advertising clients.
See More
Meta Signs Multi-Billion Dollar Chip Deal with Nvidia
- Massive Investment: Meta has invested billions in artificial intelligence, aiming to enhance its market competitiveness by building data centers and developing large language models, demonstrating its strategic commitment to AI technology and future growth.
- Partnership with Nvidia: Meta signed a new deal with Nvidia to purchase millions of chips, including GPUs and CPUs; while the deal's value remains undisclosed, analysts estimate it could be worth tens of billions, further solidifying Nvidia's leadership in the AI chip market.
- Market Reaction: This deal indicates that despite Meta's development of its own chips and potential sourcing from other suppliers, it has chosen Nvidia as the backbone of its AI infrastructure, boosting investor confidence in Nvidia's market share.
- Technological Edge: Nvidia maintains its market-leading position for GPUs due to its early focus on AI and ongoing technology updates, and this partnership with Meta will further expand its reach into the data center CPU market.
See More
Nvidia Plans $30 Billion Investment in OpenAI Amid Funding Round
- Massive Investment: Nvidia is in discussions to invest up to $30 billion in OpenAI, potentially valuing the AI startup at $730 billion, reflecting strong market confidence in AI technologies.
- Complex Investment Background: This investment is separate from the $100 billion infrastructure agreement announced in September, which involves Nvidia gradually investing in OpenAI to support the rollout of its supercomputing facilities over the coming years.
- Investment Uncertainty: Although Nvidia's $30 billion investment is not finalized and details are still subject to change, company executives have indicated a commitment to participate in OpenAI's next funding round, highlighting ongoing interest in the AI sector.
- Accelerated Fundraising Discussions: OpenAI is also engaging with other investors for fundraising discussions, with total funding potentially reaching $100 billion, indicating strong market interest and confidence in its future development.
See More
