New York, January 16, 2026, 09:33 ET — Regular session
Advanced Micro Devices (AMD) shares climbed about 2% to $227.92 in early Friday trading, lifted by strength in the semiconductor sector. The rally came after contract chipmaker TSMC reported a record quarterly profit and forecasted a nearly 30% jump in 2026 revenue, backed by a hefty $52 billion to $56 billion capital-spending plan this year. “While the likes of Nvidia, Broadcom and AMD fight it out for chip supremacy, TSMC ultimately benefits as the key manufacturer of all their chips,” said Ben Barringer, head of technology research at Quilter Cheviot. (Reuters)
The jump matters because AMD has turned into a go-to play for gauging data-center spending, with markets heavily focused on supply-chain cues to forecast the next move in chips. There’s little tolerance for weak demand chatter, especially as earnings season ramps up.
TSMC’s outlook usually carries weight. When the world’s largest contract chipmaker highlights strong orders linked to AI hardware, investors often see it as a signal for U.S. designers who produce the final processors.
AMD makes chips for PCs and servers and sells “accelerators” — specialized processors that power AI model training and operation — to data centers. This positions its stock right in the crossfire between robust AI demand and typical late-cycle concerns over budgets and inventory levels.
Chipmakers were already gaining ground heading into Friday. U.S. stocks climbed Thursday, buoyed by a semiconductor rally following TSMC’s earnings. One strategist noted the Taiwan report helped calm valuation worries in tech. “That’s been kind of squashed … with the news from Taiwan Semiconductor,” said Alan Lancz, president of Alan B. Lancz & Associates. (Reuters)
Policy risk is back on the radar. President Donald Trump slapped a 25% tariff on certain AI chips — including Nvidia’s H200 and AMD’s MI325X — citing national security concerns. The White House clarified the tariffs won’t affect chips and related gear imported for U.S. data centers and select other uses. AMD responded, saying, “We comply with all U.S. export control laws and policies.” (Reuters)
Traders are focused on whether the tariff list remains limited or expands, weighing the potential hit to supply chains and prices. The risk is straightforward: buyers hold off on orders, or companies quickly reroute shipments to sidestep the tariffs rather than face them head-on.
AMD remains in Nvidia’s shadow when it comes to data-center graphics, while investors watch Intel’s efforts to regain server market share. Even if the news isn’t directly about AMD, any signal from competitors on demand or pricing can move AMD’s stock sharply.
Right now, the tape signals that “AI demand is intact,” pushing many stocks higher in unison. But that mood can reverse quickly if the macro outlook shifts.
Next on the agenda: U.S. industrial production figures due Friday, plus speeches from Fed governors Michelle Bowman and Philip Jefferson. The upcoming week is slim on volume with a holiday, but Intel’s earnings will grab attention. Investors are also eyeing the Federal Reserve’s policy meeting on January 27-28, following a volatile run in risk appetite. (Reuters)
