Advanced Micro Devices (AMD) shares are extending gains on Thursday morning amid a broader sector-wide rally on positive spillover from Taiwan Semiconductor’s (TSM) strong Q1 earnings.
Meanwhile, hopes of a Pakistan-brokered de-escalation between the U.S. and Iran are fueling risk-on sentiment, further adding momentum to the AMD stock price rally.
At the time of writing, AMD is trading at a year-to-date high of about $175, up more than 45% versus its March low.
Why TSMC Earnings Are Bullish for AMD Stock?
TSMC’s stellar report signals robust global demand for high-performance chips that AMD designs.
As the primary manufacturer of AMD chips, Taiwan Semiconductor’s sales momentum and upbeat guidance reinforce that supply chain bottlenecks are easing and AI infrastructure spending remains aggressive.
Its release is positive for AMD stock as it reassures investors that the broader semiconductor cycle is accelerating, directly benefitting major fabless partners as they scale next-gen hardware.
Note that Advanced Micro Devices itself is scheduled to report its Q1 financials in early March. Consensus is for it to earn $1.04 per share, a 33% increase on a year-over-year basis.
What Could Drive AMD Shares Higher in 2026?
AMD shares have rallied over 35% this month, representing compressed momentum that typically signals a sustained re-rating, not just a temporary spike.
In fact, multiple Wall Street firms, including Bernstein, have raised their price objectives on AMD ahead of its earnings, citing the company’s underappreciated Meta Platforms (META) deal.
According to analysts, AMD’s upcoming MI400 series AI chips and its ROCm 7.0 software stack will help significantly expand its market share in the fast-growing enterprise AI market.
Even from a technical perspective, Advanced Micro Devices currently sits decisively above its key moving averages (MAs), reinforcing that bulls are firmly in control across multiple timeframes.
AMD Remains Buy-Rated Among Wall Street Firms
Despite its meteoric run in the training 12 months, Wall Street continues to see significant further upside in AMD stock through the remainder of 2026.
The consensus rating on Advanced Micro Devices sits at “Strong Buy” currently, with price targets as high as $380, indicating potential upside of more than 35% from here.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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