.png){kind=logo}
Shares of Advanced Micro Devices, Inc. (AMD) rose sharply on Wednesday and extended gains after hours. The AMD stock jump came as investors weighed analyst updates, new artificial intelligence (AI) catalysts, and easing geopolitical pressure tied to Greenland.
AMD closed up 7.71% at $249.80 and added 1.27% to $252.97 in after-hours trading as of 1:51 a.m. Eastern time. The broader rally lifted the Dow Jones Industrial Average 588.64 points, or 1.21%, to 49,077.23, while the NASDAQ Composite gained 1.18% and the S&P 500 advanced 1.16%.
The market rebound followed a shift in US President Donald Trump’s stance on tariffs linked to Greenland. Markets fell on Tuesday, January 20, after Trump threatened 10% tariffs on European allies opposing his bid to acquire Greenland.
However, Trump later posted on Truth Social that he had held a “very productive meeting” with North Atlantic Treaty Organization (NATO) Secretary General Mark Rutte. Trump said the discussions formed a framework for a future deal on Greenland and the broader Arctic region.
Consequently, Trump said he would not impose tariffs scheduled to take effect on February 1, citing the emerging understanding. He also said Vice President JD Vance, Secretary of State Marco Rubio, Special Envoy Steve Witkoff, and other officials would lead talks and report directly to him.
Wall Street commentary added fuel to the AMD stock jump. KeyBanc analyst John Vinh, along with analysts at Wedbush and Bank of America, upgraded AMD or reaffirmed bullish views.
Several firms lifted price targets into a $250 to $310 range, citing improved revenue visibility into 2026 and 2027. Their notes highlighted growing demand for AI accelerators and continued data center share gains.
In addition, Bernstein analyst Stacy Rasgon raised AMD’s price target to $225 from $200 while keeping a Market Perform rating. Rasgon pointed to progress in AMD’s AI efforts and said OpenAI remains the only major announced customer for AMD’s Helios chips so far.
Investors also focused on AMD’s core server central processing unit (CPU) business, where analysts cited momentum for EPYC ‘Turin’ processors. The commentary linked AMD’s traction among cloud providers and enterprise customers to ongoing manufacturing and execution challenges at Intel (INTC).
KeyBanc’s Vinh said robust demand for Turin data center CPUs could support an earnings beat when AMD reports fourth-quarter results on February 3. He also said AMD may be nearly sold out of server CPUs for 2026, a dynamic that could enable price increases of as much as 15%.
Meanwhile, AI infrastructure demand helped lift sentiment across chip stocks after comments from NVIDIA (NVDA) Chief Executive Officer Jensen Huang at the World Economic Forum (WEF) in Davos. Huang told BlackRock (BLK) Chief Executive Officer Larry Fink that the AI boom has driven the “largest infrastructure buildout in history,” and he said trillions of dollars still need to be built.
Meanwhile, the rally also followed a new focus on AMD’s large AI partnerships. OpenAI plans to deploy AMD graphics processing units (GPUs) to support up to 6 gigawatts of computing capacity for ChatGPT and future models announced later in 2025. Oracle (ORCL) disclosed plans to build AI ‘superclusters’ using about 50,000 Instinct MI450 GPUs.
Furthermore, AMD added a PC Catalyst at CES 2026, where it unveiled the Ryzen AI 400 Series for ‘AI PC’ designs. Major original equipment manufacturers (OEMs), including Acer, ASUS, and Dell, plan to ship systems in the first quarter of 2026, supporting an AI PC upgrade cycle narrative even as broader PC demand moderates.
Looking ahead, attention now turns to AMD’s Feb. 3 earnings report for fourth-quarter 2025 results.
Also Read: NVDA vs AMD vs INTC: Stock Market Outlook Amid AI Growth
