TLDR
- AMD shares rocketed 20% higher following a 57% year-over-year surge in data-center revenue during Q1
- Super Micro Computer climbed 15% after delivering fiscal Q3 results that exceeded Wall Street expectations
- Energy sector stocks tumbled as diplomatic breakthrough between U.S. and Iran sent crude oil prices downward
- Uber and cruise line operators rallied on declining fuel expenses and robust consumer demand
- Disney stock advanced 4.9% following its inaugural earnings report with Josh D’Amaro as CEO
Advanced Micro Devices delivered one of the session’s most impressive performances, with the stock soaring 20% following better-than-anticipated first-quarter financial results.
Advanced Micro Devices, Inc., AMD
The chipmaker’s data-center division emerged as the primary catalyst, reporting a 57% revenue increase versus the prior-year period. Management issued optimistic projections for the ongoing quarter, underscoring persistent strength in artificial intelligence chip demand.
Intel shares benefited from AMD’s positive report, climbing 6.3% following a previous session’s 13% advance. AMD Chief Executive Lisa Su highlighted that the central processing unit market for AI data centers could expand at a 35% annual rate, potentially reaching $120 billion by decade’s end. The CPU market remains dominated by Intel and AMD.
Super Micro Computer shares surged 15% after the company reported fiscal third-quarter earnings that exceeded analyst projections. The server manufacturer also provided fourth-quarter revenue guidance above consensus estimates.
The stock had previously plummeted 77% from its March 2024 peak amid multiple controversies. Federal authorities filed charges against a company co-founder and two associates related to an alleged scheme involving unauthorized server shipments to China. Super Micro was not listed as a defendant and stated it is fully cooperating with investigators.
Oil Stocks Under Pressure
Occidental Petroleum shares declined 8.5%, while Chevron and Exxon retreated 5.1% and 4.4% respectively. The sell-off materialized after President Trump announced substantial advancement in negotiations with Iran, fueling speculation about a potential agreement that sent crude oil prices lower.
The pullback in energy costs provided a boost to cruise operators. Carnival shares climbed 8.3%, Royal Caribbean advanced 7.6%, and Norwegian Cruise Line gained 6.4%.
Arista Networks tumbled 9.2% despite surpassing first-quarter forecasts. The networking equipment provider forecast an adjusted operating margin of 46% to 47% for the current period, representing a compression from the prior year’s 48.8%, disappointing market participants.
Earnings Across Sectors
Walt Disney shares rose 4.9% following the entertainment giant’s first quarterly report under newly appointed CEO Josh D’Amaro, with fiscal second-quarter revenue exceeding projections. D’Amaro indicated the company continues exploring collaboration opportunities with OpenAI and similar firms after a previously announced ChatGPT partnership dissolved.
Uber shares jumped 9.3% after the ride-sharing platform disclosed increased quarterly revenue and gross bookings. The company reported continued expansion in trip volumes and active user counts, although total revenue fell marginally short of analyst forecasts.
CVS Health advanced 4.5% following first-quarter earnings that beat expectations. The healthcare company’s Aetna insurance division demonstrated enhanced profitability, with its medical benefit ratio improving to 84.6% from the previous year’s 87.3%.
Novo Nordisk’s U.S.-traded shares gained 8% after the pharmaceutical company elevated its full-year profit forecast. The Danish drugmaker attributed the revision to accelerating sales of Wegovy, its weight-loss treatment.
Compass shares exploded 31% higher after the real estate brokerage delivered an unexpected first-quarter profit. Revenue nearly doubled year-over-year to $2.7 billion, propelled by its combination with competitor Anywhere.
Apollo Global Management surpassed $1 trillion in assets under management, lifting its share price.
Lucid Group dropped 3.5% after the electric vehicle manufacturer posted a quarterly loss exceeding analyst estimates. The stock has declined 41% year-to-date and 74% over the trailing twelve-month period.
