New York, Jan 14, 2026, 09:36 EST — Regular session
Shares of Advanced Micro Devices slipped 1.7% to $217.27 in early Wednesday trading, following a sharp 6.4% gain the day before. The stock had closed Tuesday at $220.97. 1
The pullback arrives as traders wrestle with this: did Tuesday’s upgrade-fueled rally already factor in much of 2026 data-center demand? AMD has turned into a crowded AI proxy, with the market now focusing on supply tightness—not just fresh chips—as the next big driver.
KeyBanc’s John Vinh upgraded AMD to “overweight,” setting a $270 price target. He pointed to stronger demand after concerns about a gap in accelerator product cycles. In his note, Vinh said AMD is close to “being completely sold out” of server CPUs and highlighted the possibility of a 10% to 15% price hike on server processors in Q1. 2
Vinh highlighted growing demand for AMD’s Instinct MI355 AI accelerators and noted the MI455 series, linked to the Helios rack-scale system — a setup combining a full rack of integrated servers and networking — is slated for release later this year. He projects AMD’s AI revenue could hit $14 billion to $15 billion by 2026. 2
KeyBanc’s note rippled through the chip sector. Analysts flagged that AMD and Intel have “largely sold out” their anticipated 2026 server CPU capacity for data centers and are weighing price hikes, as reported by Investopedia. 3
AMD and Tata Consultancy Services announced a strategic partnership focused on advancing enterprise AI projects beyond pilot stages into full production. AMD CEO Lisa Su remarked, “AI adoption is accelerating,” while TCS CEO K. Krithivasan described the move as “a significant step in scaling AI for the enterprise.” 4
The picture isn’t as solid as the green on the charts suggests. Barron’s noted that U.S. stock futures dipped in premarket trading, as investors kept an eye on rates, oil, and risk appetite — a combination that can quickly pressure high-multiple chip stocks when sentiment shifts. 5
In early trading, Nvidia shares edged up around 0.5%, while Intel surged close to 7% following Tuesday’s spate of upgrades.
The upside hinges on flawless execution: capacity checks often throw off signals, and raising prices risks resistance from major buyers. A stumble in AI accelerator production or a pullback in data-center investment would hit hard, particularly after the recent surge.
AMD will release its fiscal fourth-quarter and full-year 2025 results on Feb. 3 after the market closes, followed by a conference call at 5 p.m. EST. The focus will be on updates about server CPU pricing, availability of AI accelerators, and the outlook for demand heading into 2026.
