AMD Shares Surge as New Year Trading Commences

Advanced Micro Devices (AMD) has entered 2026 with significant momentum, with its stock trading just shy of an all-time high. Investor focus, however, is not fixed on last year's gains but is instead shifting forward to Las Vegas, where CEO Dr. Lisa Su's keynote at the Consumer Electronics Show (CES) may outline the company's next strategic moves in its competition with industry leader Nvidia.

Fueled by persistent enthusiasm surrounding artificial intelligence, the semiconductor sector continues to experience robust demand. This positive sentiment, combined with a strong overall market, propelled AMD's share price upward by approximately 5% this past Friday, closing at $225.16. The stock now sits less than 1% below its 52-week peak. The primary driver behind this optimism remains the unwavering need for infrastructure supporting AI and high-performance computing applications.

Anticipation Builds for CES Keynote

A near-term focal point for markets is January 5. Dr. Su's scheduled opening address at CES is viewed by analysts, including those at Wedbush, as a potential catalyst for the equity. Market observers anticipate announcements that go beyond technical enhancements to the Ryzen processor line. Significant updates regarding the roadmap for AI accelerators are expected, with particular speculation centered on launch details for the MI450 GPU. This product is considered crucial for AMD's efforts to capture greater market share within the data center segment.

Should investors sell immediately? Or is it worth buying AMD?

Wall Street's Bullish Stance

Analyst sentiment for the coming year remains positive. TD Cowen has named AMD one of its "Best Ideas for 2026," reaffirming a price target of $290. The firm's researchers identify the anticipated mid-2026 launch of the MI450 products and Helios racks as a pivotal development. This introduction could position AMD as a more direct competitor to Nvidia in the hyperscaler market.
This view finds support in the broader analyst consensus. The average price target among covering firms stands at around $283, suggesting considerable upside potential from current trading levels.

The Road Ahead

AMD enters this period following an impressive third-quarter 2025 report, which featured revenue growth exceeding 35%. The challenge now is to validate that performance. The next critical test will arrive with the upcoming quarterly earnings release on February 3, 2026. In the interim, the developments and tone set at the CES presentation in Las Vegas are likely to be the dominant influence on near-term investor sentiment.