AMD Stock Projected to Soar 60% in 2026 Under Trump’s Influence
Advanced Micro Devices (AMD) is positioned for significant growth in 2026, particularly following recent policy changes by the Trump administration. This strategic shift is expected to reopen vital markets for AMD’s advanced AI chips, boosting revenue and stock value. The stock has already shown impressive gains, increasing by 78% throughout 2025.
Current Stock Performance
As of now, AMD’s stock has experienced a decline of 19% since reaching a 52-week high on October 29. This drop may present a buying opportunity for investors interested in capitalizing on a company benefitting from the growing artificial intelligence sector.
Financial Background
For 2025, AMD is on track to generate approximately $34 billion in revenue, reflecting a 31% increase from the previous year. However, the imposition of export controls in April 2023, designed to limit sales of advanced AI chips to China, resulted in AMD taking an $800 million inventory charge.
- Revenue for 2024: $25.8 billion
- Loss of Chinese Revenue: Nearly $6.2 billion
- 2025 Earnings Estimate: $3.97 per share
- Projected 2026 Earnings: $6.46 per share
Impact of Trump’s Administration Announcement
President Trump’s recent announcement indicates that companies like AMD, Nvidia, and Intel can resume selling advanced chips to Chinese markets. This policy reversal could offer AMD a substantial advantage, potentially allowing it to recover lost revenue in 2026.
Potential Financial Growth
Analysts predict AMD’s revenue could climb by 31% in 2026, reaching approximately $44.6 billion. If sales in China rebound to previous levels, revenue could top $51 billion. Currently, projections do not fully account for the gains expected from the policy changes.
| Year | Projected Revenue | Market Cap Projection |
|---|---|---|
| 2025 | $34 billion | Est. $350 billion |
| 2026 | $51 billion | Est. $561 billion |
Investment Outlook
With a price-to-sales ratio poised at 11, AMD’s market capitalization could surge significantly in the upcoming year. Investors considering AMD stock may find this an opportune moment to enter, especially as its trajectory points towards a potential 60% increase in value by 2026.
AMD’s prospects are strong, especially with the expected market revival in China. Strategic investments now might yield substantial returns as the semiconductor giant leverages new market openings under the influence of the Trump administration’s recent directives.
