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Market Data Table

Breakfast News: AMD Pops 17% On Chip Demand Surge

May 6, 2026

Tuesday's Markets
S&P 500 7,259 (+0.81%)
Nasdaq 25,326 (+1.03%)
Dow 49,298 (+0.73%)
Bitcoin $81,619 (+2.00%)

Chart comparing Advanced Micro Devices' market performance over the past three years to that of the S&P 500, with AMD up 274% and the S&P 500 up 75%.

1) AMD Lifted by AI-led Semiconductor Sales

Advanced Micro Devices (NASDAQ:AMD) jumped 17% in pre-market trading after beating expectations in the first quarter of fiscal 2026 -- on a day when chip stocks pushed the S&P 500 and Nasdaq to new record highs. The chipmaker -- beating the S&P 500 by 55% since its 2024 Stock Advisor recommendation by Team Rule Breakers -- saw revenue surge 38% in the quarter year over year (YOY), with non-GAAP earnings per share (EPS) up 43%.

"Accelerating demand for AI infrastructure across our portfolio": CEO Lisa Su spoke of the driving force behind AMD's stunning start to the year, describing the quarter as "a clear inflection in our growth trajectory and a structural shift in our business." AMD's partnership with Meta (NASDAQ:META) should see the deployment of 6 gigawatts of Instinct graphics processing units (GPUs).
Guidance for Q2 revenue to reach $11.2 billion: Management predicts a 9% revenue rise between this quarter and the next, which would mean a YOY increase of 46% in Q2.

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2) Arista Beats on Revenue, Suffers Cost Pressure

Arista Networks (NYSE:ANET) -- recommended by both Team Hidden Gems and Team Rule Breakers -- beat its own Q1 revenue guidance with a 35% YOY increase, with non-GAAP EPS up 32%. Operating cash flow in the period soared 164% YOY to reach $1.69 billion. How did the market react to such a solid quarter? With a 9% fall in early trading.

Memory prices climbing: Looking forward, the same factors helping push AMD profits higher lay behind a note of caution from Arista's management. Supply chain constraints and rising costs -- for memory chips in particular -- could continue to put pressure on margins.
"2026 will more than double AI revenue to $3.25 billion": At Q4 results time, Fool analyst Seth Jayson noted the company's projection, pointing out that "current AI-sales were just 1/6 of the total." As Arista's sales mix shifted further toward AI networking builds this time, investors need to keep an eye out.

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3) Other Tuesday Updates You Might Have Missed

PayPal (NASDAQ:PYPL) saw total payment volume in its first quarter increase 11%, though the company expects full-year EPS to come in flat or dip modestly. Recommended by both Team Hidden Gems and Team Rule Breakers, PayPal fell 7.8% by market close.
Occidental (NYSE:OXY) cut its principal debt by a record $7.1 billion in Q1, a quarter that saw the sale of its OxyChem chemical business. Focus is on core oil and gas operations but also on low-carbon business -- though management gave us no new financial guidance. The stock declined 3% in an early trading response.
Coupang (NYSE:CPNG) -- recommended in SA by Team Rule Breakers -- dipped 7% overnight despite an 8% revenue rise in fiscal Q1. That's a welcome step in the company's recovery following 2025's data incident. But cost pressures driven by expansion into new business lines turned profits negative in the quarter.

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4) Your Wednesday Earnings Selection

Walt Disney (NYSE:DIS) -- recommended in SA by Team Rule Breakers -- reported a 7% YOY rise in Q2 revenue before the opening bell, modestly ahead of guidance, with non-GAAP EPS up 8.3%. Management guided for full-year EPS growth of approximately 12% (excluding the 53rd week impact). The stock responded with an early 7% jump.
Uber (NYSE:UBER) -- 157% ahead of the S&P 500 since a 2022 Rule Breakers rec -- reported a 20% rise in Q1 trips this morning, with gross bookings up 21%, both YOY. In the words of CEO Dara Khosrowshahi, "Reaching 50 million Uber One members is an exciting milestone." The stock jumped 10% in response.
DoorDash (NASDAQ:DASH), recommended in SA by Team Hidden Gems, saw net income jump 51% in Q4 YOY from revenue up 38%. Management expects further growth this time but cautioned of high near-term costs as it integrates new platforms.

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5) Your Take

What's one investing habit or discipline you want to focus on this month?

Discuss with friends and family, or become a member to hear what your fellow Fools are saying!

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