The tech world is buzzing with AI developments as the Consumer Electronics Show (CES) kicks off, driving significant market movements and strategic partnerships. Advanced Micro Devices (AMD) stock jumped 4.3% in premarket trading on January 5, 2026, fueled by strong demand signals for AI hardware and anticipation of CEO Lisa Su's keynote speech at CES, where she will detail AMD's AI solutions for data centers and devices. Foxconn, a major server manufacturer for Nvidia, reported record sales, further boosting confidence in the AI chip market. Nvidia, despite a slight 0.5% dip in shares, made a substantial move by licensing Groq's AI inference technology in a deal reportedly worth $20 billion. This strategic acquisition, which includes Groq's founder and key team members joining Nvidia, aims to enhance Nvidia's AI inference capabilities and compiler technology, an area where its chips seek greater dominance. Meanwhile, Broadcom Inc. shares dropped about 2%, as the company previously warned that lower-margin custom AI processors could impact its profits. Beyond hardware, the AI software and services sector also sees major activity. Samsung plans a significant increase in its "Galaxy AI" devices this year, powered by Google's Gemini. OpenAI, valued at $500 billion, remains private but offers investment exposure through companies like Microsoft, which holds a 27% stake and provides cloud infrastructure, and Nvidia, a critical chip supplier. Analysts are also highlighting other promising AI and cloud stocks such as C3.ai, Snowflake, and Palantir Technologies for their enterprise AI platforms and data management solutions. Amazon stands out as a top AI growth stock, with Amazon Web Services (AWS) sales increasing 20% in the third quarter, largely driven by AI demand. Internationally, Shanghai-based AI company MiniMax priced its Hong Kong IPO at the top of its range, HK$165 per share, signaling strong investor interest in Chinese AI firms. However, Bridgewater founder Ray Dalio cautioned that the AI boom shows signs of an early bubble, and investors are expected to diversify into small-cap stocks, gold, healthcare, and emerging markets in 2026 as the AI stock rally matures.
Key Takeaways
- AMD stock surged 4.3% on January 5, 2026, driven by strong AI demand signals and anticipation of CEO Lisa Su's CES keynote on AI solutions.
- Nvidia licensed Groq's AI inference technology and compiler tech for $20 billion, with Groq's founder joining Nvidia, to boost its AI inference capabilities.
- Foxconn, a major server maker for Nvidia, reported record fourth-quarter revenue due to high demand for AI products.
- Samsung plans to significantly increase its "Galaxy AI" devices this year, utilizing Google's Gemini technology.
- OpenAI, valued at $500 billion, offers investment exposure through Microsoft (27% stake) and Nvidia, a key chip supplier.
- Broadcom shares fell, partly due to concerns that lower-margin custom AI processors could negatively impact its profits.
- Analysts recommend AI and cloud stocks like C3.ai (enterprise AI), Snowflake (cloud data warehousing), and Palantir (data analysis software) for growth potential.
- Amazon Web Services (AWS) sales grew 20% in Q3, driven by AI demand, positioning Amazon as a leading AI growth stock.
- Shanghai-based AI company MiniMax priced its Hong Kong IPO at HK$165 per share, the top of its range, due to strong investor demand.
- Investors are expected to diversify beyond AI in 2026 into small-cap stocks, gold, healthcare, and emerging markets, amid warnings of an early AI bubble.
Broadcom Stock Falls While Chip ETFs Rise
Broadcom Inc shares dropped about 2% to $340.71 on Monday, even as other chip exchange-traded funds saw gains. Investors are closely watching the Consumer Electronics Show (CES) for news on AI hardware demand and a Friday jobs report. Broadcom previously warned that lower-margin custom AI processors could hurt its profits. The company's next earnings report is due after March 4.
AMD Stock Jumps on Strong AI Demand Signals
Advanced Micro Devices stock rose 4.3% in premarket trading on Monday, January 5, 2026. This jump happened as the CES technology show began in Las Vegas, where investors seek updates on AI hardware. Foxconn, a major server maker for Nvidia, reported record sales due to high AI product demand. Samsung also plans to greatly increase its "Galaxy AI" devices this year, using Google's Gemini. AMD CEO Lisa Su will give a keynote speech at CES.
AMD Stock Climbs Before CEO Lisa Su's CES AI Keynote
Advanced Micro Devices stock increased 2.8% in premarket trading on Monday, January 5, 2026. This rise happened as investors looked forward to CEO Lisa Su's keynote speech at the Consumer Electronics Show (CES). Her speech will focus on AMD's plans for AI solutions in data centers and devices. Foxconn's strong sales of AI-related products also boosted confidence in the chip market. Investors are also watching for upcoming U.S. economic reports.
Nvidia Stock Dips Before CEO Huang's CES Speech
Nvidia shares dropped 0.5% on Monday as investors waited for CEO Jensen Huang's press conference at CES in Las Vegas. Foxconn, a major server maker for Nvidia, announced record fourth-quarter revenue, driven by strong demand for AI products. However, Bridgewater founder Ray Dalio warned that the AI boom is showing signs of an early bubble. Investors are also looking for updates on Nvidia's new graphics processing units and how competition might affect demand.
Nvidia Boosts AI Inference Power with Groq Deal
Nvidia is strengthening its AI capabilities by licensing Groq's inference technology in a deal reportedly worth $20 billion. Groq's founder and key team members will also join Nvidia. This move helps Nvidia improve its performance in AI inference, an area where its chips are not as dominant as they are in AI training. Analysts from Citigroup and UBS view this as a positive step, expecting significant stock gains for Nvidia. They believe Groq's specialized LPU technology will help Nvidia handle high-speed AI applications more efficiently.
Nvidia Spends $20 Billion for Groq AI Compiler Tech
Nvidia has signed a $20 billion licensing deal with Groq, an AI company known for its LPU chips designed for inference. Analysts believe Nvidia is primarily interested in Groq's advanced compiler technology, which moves complex tasks from hardware to software. This acquisition helps Nvidia quickly improve its AI inference capabilities without years of internal development. Groq's founder, president, and other key staff will join Nvidia to further develop this technology. Groq will continue to operate as a separate company.
Investors Seek New Opportunities Beyond AI in 2026
Global investors are expected to look for undervalued assets in 2026 as the AI stock rally matures. Experts suggest focusing on small-cap stocks, gold, healthcare, and financial sectors. Small-cap stocks may benefit from lower interest rates and improved earnings. Gold prices are predicted to reach $5,000 per ounce, supported by central bank purchases. The U.S. dollar may weaken, boosting emerging market currencies and commodity-linked currencies. Emerging markets are also expected to see strong investment inflows.
MiniMax IPO Prices High in Hong Kong Amid AI Excitement
Shanghai-based AI company MiniMax plans to price its Hong Kong IPO at HK$165 per share, the top of its range. Strong investor demand, including from sovereign wealth funds, led to institutional orders closing a day early. MiniMax, backed by Tencent, is expected to start trading on Friday. This IPO marks one of the first "Chinese AI dragons" to list, alongside rival Zhipu, as AI-related companies are set to drive Hong Kong's share sales in 2026.
How to Invest in OpenAI Before Its IPO
OpenAI, the creator of ChatGPT, is valued at $500 billion but is currently a private company. While a public offering might happen in 2026 or 2027, investors can still gain exposure. One way is by investing in companies like Microsoft, which holds a 27% stake in OpenAI and provides its cloud infrastructure. Another option is Nvidia, a critical supplier of AI chips to OpenAI. Retail investors can also consider venture capital funds like the Fundrise Innovation Fund, which includes OpenAI in its portfolio.
US IPOs Lagged S&P 500 in 2025
U.S. initial public offerings (IPOs) did not perform as well as the S&P 500 index in 2025. Shares of companies that went public rose by 13.9% on average, while the S&P 500 gained 16%. Market volatility and closer examination of crypto and AI companies affected many high-profile listings. Experts noted that investors became more selective, requiring companies to have stronger business plans. Medium-sized IPOs performed worse than larger ones.
Top AI and Cloud Stocks Analysts Recommend
Analysts are highlighting three promising AI and cloud stocks beyond the biggest tech companies. C3.ai offers an enterprise AI platform and is gaining larger contracts. Snowflake provides a vital cloud-based data warehousing platform for managing vast amounts of data needed by AI applications. Palantir Technologies offers powerful software for data analysis, helping government and business clients make complex decisions using AI. These companies are seen as key enablers of the AI revolution and have strong growth potential.
Gorilla Technology Invests in Astrikos AI for Global Expansion
Astrikos AI received a strategic investment from Gorilla Technology Group to boost its global growth. This partnership will help Astrikos AI expand its Smart Interop Analytical Platform into key markets like the United Arab Emirates, USA, and India. Astrikos AI specializes in real-time monitoring and optimization for critical systems in smart cities and data centers. Gorilla Technology's expertise in edge computing and cybersecurity will enhance Astrikos AI's offerings, especially as the smart cities market is expected to double by 2030.
Amazon Stands Out as a Top AI Growth Stock
Amazon is highlighted as a leading AI growth stock due to accelerating growth in its Amazon Web Services (AWS) and advertising businesses. AWS sales increased 20% in the third quarter, driven significantly by AI demand. Amazon's CEO, Andy Jassy, noted this growth rate is the highest since 2022. The company is making large investments in AI, believing it offers a huge opportunity for long-term returns. Despite heavy spending, Amazon's strong cash flow and diverse business make it an attractive investment.
Sources
- Broadcom stock drops as chip ETFs rise; traders parse CES AI cues and Friday jobs report
- AMD stock jumps in premarket as CES 2026 and fresh AI demand signals reset the trade
- AMD stock rises in premarket as Lisa Su’s CES keynote puts AI chips in focus
- Nvidia stock slips ahead of CES 2026 keynote as Foxconn AI sales jump and Dalio flags bubble risk
- Citigroup, UBS Size Up Nvidia Stock as AI Inference Ramps Up
- Here’s why Nvidia is dropping $20B on Groq’s AI tech
- Investors may go value hunting in 2026 as AI rally matures
- MiniMax Is Said to Plan Pricing Hong Kong IPO at Top on AI Fervor
- 5 Ways to Invest in OpenAI (ChatGPT)
- US IPO Performance Lags S&P 500 in 2025 as Crypto, AI Deals Sink
- 3 AI and Cloud Stocks With Analyst Conviction and Long Runways
- Astrikos AI Secures Strategic Investment from Gorilla Technology Group to Accelerate Global Growth
- Here's My Top AI Growth Stock to Buy in January
Comments
Please log in to post a comment.