U.S. Stocks Rally as Strong Earnings Lift Nasdaq 1.2%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 15 2026
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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 over the next 12 months. According to Wall Street analysts, the average 1-year price target for AMD is 284.10 USD with a low forecast of 200.00 USD and a high forecast of 377.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
36 Analyst Rating
27 Buy
9 Hold
0 Sell
Strong Buy
Current: 252.740
Low
200.00
Averages
284.10
High
377.00
Current: 252.740
Low
200.00
Averages
284.10
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 Doubles as AI Compute Demand Soars
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- New Product Launch: AMD's upcoming Helios rack system will feature 72 graphics processing units (GPUs) integrated with EPYC central processing units (CPUs) and networking components, aiming to enhance margins by consolidating multiple products to meet the rising AI compute demand.
- Competitive Market Advantage: Despite competition from larger chip companies, AMD's shift to rack-scale systems is likely to attract data center operators looking to reduce costs and dependence on a single supplier, thereby strengthening its market position and customer appeal.
- Revenue Growth Expectations: Wall Street analysts project AMD's revenue will increase from $25 billion in 2024 to $62 billion by 2027, which is expected to drive earnings growth and deliver attractive returns for investors.
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Intel Faces Crucial Turning Point in Chip Manufacturing
- Market Share Decline: Between 2018 and 2025, Intel's share of the desktop x86 CPU market plummeted from 87% to 66.4%, while AMD's surged from 13% to 33.6%, indicating a significant loss of competitive edge that has forced Intel to reassess its strategies.
- Strategic Investment Shift: Intel's new CEO, Lip Bu-Tan, took office in March 2025 and committed to reclaiming its manufacturing lead by investing in ASML's high-NA extreme ultraviolet (EUV) systems, although this transformation requires substantial capital outlay.
- Future Profit Expectations: Analysts predict Intel's net loss will widen to $400 million in 2026, marking its third consecutive year of losses, but expect a turnaround in 2027 with a net profit of $2.3 billion, surging to $4.1 billion in 2028, reflecting optimism about its technology investments.
- Critical Year Outlook: 2026 is seen as a pivotal year for Intel, as it must stabilize its high-NA EUV process to prepare for risk production of 14A chips in 2027; successfully launching these chips could allow it to surpass TSMC in the process race, although high manufacturing costs may hinder its market performance.
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