New York, Jan 26, 2026, 17:37 EST — After-hours
- AMD dropped roughly 3% on Monday, ending a nine-day winning run
- Despite a Piper Sandler analyst lifting AMD’s price target to $300, the stock slipped
- Traders are gearing up for the Fed’s decision on Jan. 28 and AMD’s earnings report on Feb. 3
Advanced Micro Devices shares slipped roughly 3.3% to $251.31 in after-hours trading Monday, after trading between $259.12 and $250.31 during the session. The decline snapped the chipmaker’s stock’s nine-day winning streak.
The pullback comes as investors wrestle with how long the AI-driven spending surge can last before it morphs into a bubble. Bridgewater Associates’ co-chief investment officers warned in a client note Monday that when one company ramps up AI capital expenditure, it can force competitors to do the same.
Risk assets face a busy week, as traders eye major tech earnings and a Federal Reserve decision known for jolting richly valued growth stocks. On Monday, U.S. stocks pushed higher ahead of those events.
AMD is gearing up to reveal its fiscal fourth-quarter and full-year 2025 earnings on Tuesday, Feb. 3, after the market closes. The company will follow up with a conference call at 5:00 p.m. EST.
Piper Sandler analyst Harsh Kumar boosted AMD’s price target to $300 from $280 and kept an Overweight rating, a report on Monday showed.
On Monday, the AI hardware story took another turn as Microsoft rolled out Maia 200, the second-gen version of its custom AI chip, alongside new software designed to challenge Nvidia’s dominance with its CUDA platform, Reuters reported. The ongoing push by cloud giants to develop their own silicon keeps investors watching closely—tracking who gains market share and who stands to lose pricing power as the cycle evolves.
Macro factors could steer the near-term direction. Bond investors are gearing up for the Fed to hit pause on rate cuts, with the central bank widely expected to keep its benchmark rate steady after its two-day meeting wraps up Wednesday. “A pause makes a lot of sense,” said Tony Rodriguez, head of fixed income strategy at Nuveen, in comments to Reuters. Reuters
Though no policy changes are anticipated, the press conference might still rattle forecasts on the timing of rate cuts. Oxford Economics chief U.S. economist Michael Pearce remarked in a note last week that “the near-term outlook is benign,” but warned that external developments could disrupt the committee’s trajectory. Reuters
AMD investors face a key moment: will Monday’s drop prove a routine profit-taking move after January’s rally, or the onset of a sharper pullback before earnings?
The downside is clear. Should hyperscalers push further into their own chips, or if skepticism grows around AI returns amid prolonged higher rates, AMD’s upcoming guidance could carry more weight than its actual quarterly results.
Keep an eye on the Fed’s decision coming up Wednesday, Jan. 28, and AMD’s earnings report set for after the close on Tuesday, Feb. 3.
