New York, Feb 6, 2026, 10:38 EST — Regular session.
- After a sharp midweek drop hitting chip and AI stocks, AMD shares bounced back on Friday.
- Reuters reported that AMD and Intel have alerted their China customers to expect longer delays for server CPUs
- The spotlight turns to whether AI infrastructure demand remains strong — plus Nvidia’s results due Feb. 25
Shares of Advanced Micro Devices jumped roughly 7% on Friday, clawing back part of the week’s steep declines. The chip sector found footing, boosted by a Reuters report highlighting tight supply of server processors in China.
This shift is significant as the market has been slashing valuations on anything linked to the “AI trade,” concerned that costs are outpacing returns. Yet, clear evidence of genuine demand for the infrastructure — specifically, the chips powering data centers — can still shake up the tape.
AMD faces challenges on two key fronts: central processing units (CPUs), which power servers, and graphics processing units (GPUs), the heavy lifters for many AI tasks. Investors remain jittery over demand and supply as major clients continue to be selective.
Reuters reported that AMD and Intel have informed customers in China about longer waits for certain server CPUs, with delivery “lead times” — the gap between order and shipment — extending. Intel warned some clients of delays as long as six months. Meanwhile, a source indicated AMD’s lead times for some products stretched to eight to 10 weeks. AMD, however, remains confident it can meet global demand, pointing to supplier agreements and its partnership with Taiwan Semiconductor Manufacturing Co. 1
AMD bounced back following a rough patch that dragged chipmakers down alongside a wider tech selloff this week, triggered by jitters moving from software stocks to semiconductors and mega-caps. Reuters’ Morning Bid column highlighted AMD’s sharp mid-week drop as a key moment in the downturn. 2
Friday saw a quieter market, as Wall Street’s major indexes bounced back following three days of losses. Investors remained focused on Big Tech’s growing capital expenditure plans, though. “There’s almost unabashed enthusiasm and then there’s a period of greater discernment,” said Kristina Hooper, chief market strategist at Man Group. 3
AMD projected first-quarter revenue around $9.8 billion, give or take $300 million, earlier this week. That’s a dip from the previous quarter, raising questions about how fast AI demand will boost growth. Bernstein analyst Stacy Rasgon noted that near-term AI figures “are not really inflecting,” whereas CEO Lisa Su expects demand for next-gen AI servers to “accelerate sharply” in the latter half. 4
Shortages work both ways for the stock. While tight supply may point to strong demand, it can also lead to shipment delays, rising costs, and unhappy buyers — particularly if memory and other server components remain scarce.
Competition poses a significant challenge. Nvidia still leads the AI accelerator market, with Intel scrambling to defend its grip on server CPUs. Meanwhile, custom chips from major cloud providers continue to ramp up pressure on the margins.
The next major milestone for the group arrives on Feb. 25, when Nvidia reports its fourth-quarter earnings. Investors are keen to see what the data-center demand looks like and whether the AI spending surge is translating into actual orders benefiting suppliers such as AMD. 5
