AI Chip Boom Lifts Intel, AMD and Sector Peers

January 14, 2026 at 07:19 UTC

6 min read

AI chip sector rally with Intel and AMD stock surge amid high demand and supply constraints

Key Points

KeyBanc upgrades spark sharp rallies in Intel and AMD as 2026 AI server CPU capacity nears sell-out
Analysts see Intel’s 18A process and foundry push as key to a multi‑year turnaround
Nvidia, Broadcom, TSMC and Applied Materials draw fresh bullish calls tied to AI infrastructure demand
Micron’s high‑bandwidth memory surge and Nvidia’s China export approvals highlight supply constraints

Intel and AMD Jump on AI Server Demand and Upgrades

Intel and Advanced Micro Devices led semiconductor gains on Jan. 13 after KeyBanc analysts upgraded both stocks to “overweight,” citing stronger-than-expected demand for their artificial intelligence server products. Intel shares closed at $47.29, up 7.33%, with trading volume about 82% above its three‑month average. AMD finished at $220.97, up 6.39%, on volume roughly 25% above its recent average. KeyBanc’s research indicated that both companies have “largely sold out” of their expected 2026 capacity for server CPUs used in data centers and are considering price increases of 10% to 15% amid overwhelming demand. For Intel, the upgrade came with a Street‑high $60 price target and helped reframe the company as a 2026 turnaround story driven by AI and data‑center CPUs. Separately, Bank of America said it expects Intel’s fourth‑quarter 2025 sales and margins to come in in‑line or better, supported by healthy server demand, even as it maintained an “underperform” rating and a $40 target. For AMD, KeyBanc’s $270 target followed supply‑chain checks showing intense hyperscaler demand and server CPUs that are almost sold out for 2026. Bank of America also projected that AMD would beat consensus revenue estimates in the fourth quarter and first quarter, helped by ramping MI355X accelerators and a strong server market.

Broader Market Reaction and AI Chip Stock Momentum

The rallies in Intel and AMD came on a day when the S&P 500 slipped about 0.2% and the Nasdaq Composite eased 0.1%, underscoring how AI‑linked chipmakers are diverging from the broader market. A separate market wrap noted that AMD and Intel strength helped offset weakness in banking and some large software names. Another daily recap highlighted that both stocks surged on analyst optimism around AI chips and servers, even as some commentators questioned whether the AI rally could lose steam. Despite short‑term volatility, AMD is up 77% over the past year and trades at 34 times forward earnings, while Intel has risen more than 80% in 2025, according to one TSMC‑focused article. Analysts at Investopedia pointed out that KeyBanc is currently the only firm tracked by Visible Alpha with a buy‑equivalent rating on Intel, compared with a mix of hold and sell views elsewhere, while AMD enjoys a broader base of buy ratings. The same analysis said KeyBanc’s evaluation of Intel’s 18A production method suggested it could credibly become the number‑two foundry supplier behind Taiwan Semiconductor Manufacturing.

Nvidia’s AI Push, China Uncertainty and Competitive Landscape

Nvidia remains central to the AI hardware story, but recent developments highlight both growth and uncertainty. On Jan. 13, Nvidia shares closed at $185.81, up 0.47%, after Reuters reported that the U.S. government had authorized exports of its H200 chips to China, while Chinese authorities said only certain local companies would be allowed to purchase the chips. Nvidia must put H200 units through U.S. third‑party testing before any exports, and Chinese officials will restrict eligible buyers. CEO Jensen Huang recently told investors that Beijing is unlikely to set a formal quota for H200 shipments, with individual purchase orders determining revenue from China. CFO Colette Kress said Nvidia had sought approval to sell H200s but was still awaiting a decision earlier in January. Separately, Nvidia used CES 2026 to expand beyond GPUs, unveiling its Vera Rubin next‑generation AI data‑center architecture and Alpamayo, a family of models and tools aimed at “reasoning‑based” autonomous driving. The Alpamayo package includes a vision‑language‑action model for long‑tail driving scenarios, a simulation framework, and open datasets, and is expected to appear in Mercedes‑Benz vehicles. At the same time, articles noted rising competition from AMD and custom chips developed by major cloud customers, as well as export controls and tariffs that could weigh on Nvidia’s China‑related margins.

Foundry and Infrastructure Winners: TSMC, Broadcom and Applied Materials

AI demand is also flowing through to foundries and infrastructure suppliers. Taiwan Semiconductor reported a 20% year‑over‑year jump in fourth‑quarter revenue to about NT$1.046 trillion (roughly $33.1 billion), beating expectations, with management citing surging AI chip demand offsetting weaker consumer electronics. JPMorgan raised its TSMC price target to NT$2,100 and forecast 30% U.S.‑dollar revenue growth in 2026, driven by rising 3‑nanometer demand, an accelerating 2‑nanometer ramp, stronger advanced packaging and higher average selling prices. Analysts also expect more than 20% revenue growth in 2027, supported by leading‑edge capacity and sustained AI‑driven capital spending. In custom accelerators, Bernstein reiterated an “Outperform” rating on Broadcom with a $475 target, arguing that fears about AI competition and customer‑owned tooling are overblown. The firm highlighted Broadcom’s leadership in AI ASICs, citing advantages in 3D chip stacking, 400G serdes, substrate manufacturing and potential interposer‑less techniques. On the equipment side, Applied Materials has drawn multiple upgrades. Susquehanna raised its rating to “Positive” with a $400 target, citing industry checks pointing to roughly $120 billion in wafer‑fab equipment spending, while Bernstein lifted its target to $325 and maintained a market‑perform view. Another Bernstein report called Applied a favored 2026 pick despite elevated valuation, noting its role as the largest supplier of semiconductor manufacturing tools and its strong share‑price performance over the past year.

Memory and Component Suppliers Ride AI High-Bandwidth Demand

Memory and component makers are also benefiting from AI infrastructure build‑outs. Micron Technology shares have more than tripled in 2025, supported by strong demand for high‑bandwidth memory (HBM) used in AI workloads. For its fiscal first quarter of 2026, Micron reported revenue of $13.64 billion, up 56.8% year over year and ahead of expectations, with its cloud memory business nearly doubling to $5.28 billion. Non‑GAAP net income reached $5.48 billion, or $4.78 per diluted share, above analyst forecasts. Micron guided for second‑quarter 2026 revenue between $18.3 billion and $19.1 billion and projected earnings per share of $8.22 to $8.62, citing ongoing HBM shortages amid the AI boom. Another article noted that Micron’s strong cash flow and positioning in a memory market expected to grow at a double‑digit compound rate underpin its recent share‑price gains. Elsewhere in the supply chain, Microchip Technology has been identified by Mizuho as a key outperformer for 2026, helped by AI‑driven demand and products such as a 3‑nanometer PCIe Gen6 switch chip and custom firmware for Nvidia’s DGX Spark AI supercomputers. These developments underscore how AI spending is lifting not only headline GPU and CPU vendors but also foundries, equipment makers, memory suppliers and embedded component providers.

Key Takeaways

Analyst upgrades tied to sold‑out 2026 server CPU capacity have repositioned Intel and AMD as central beneficiaries of AI data‑center spending.
Nvidia remains a core AI supplier but now faces a mix of China export constraints, customer competition and diversification into full AI stacks and autonomy tools.
Foundries, equipment vendors and memory makers such as TSMC, Applied Materials, Broadcom and Micron are capturing significant AI‑driven demand across the chip supply chain.