Shares of Advanced Micro Devices (AMD +3.42%) were advancing this morning after investors regained some of their optimism that the tech sector will recover from its months-long decline. That sentiment was likely spurred by semiconductor manufacturer Taiwan Semiconductor reporting strong first-quarter sales growth.
AMD shares were up by 6.4% as of 10:58 a.m. ET.
Image source: Getty Images.
Rising tides lift all boats
Taiwan Semiconductor, or TSMC, is the world's leading semiconductor manufacturer, and the company said this morning that its sales jumped 35% to $35.6 billion in the first quarter. That's a very good indication that demand for AI processors is still very high, which is great news for AMD's business.
AMD's data center business performed very well in Q4 2025, with revenue rising 39% to a record $5.4 billion.
The company will report its Q1 2026 results on May 5, and investors are hoping that TSMC's growth means that AMD's data center sales will benefit from the same AI demand its peers are experiencing.
Additionally, investors appear to be remaining somewhat optimistic that the current ceasefire between Iran and the U.S. could lead to further de-escalation. Vice President Vance is traveling to Pakistan this weekend for negotiations with Iran.
The war has caused energy prices to soar, resulting in higher inflation in the U.S. and putting pressure on consumer sentiment.
NASDAQ: AMD
Key Data Points
A clearer picture of chip demand
AMD shareholders will get a clearer picture of semiconductor demand when AMD reports Q1 results at the beginning of May. Management expects total revenue of $9.8 billion at the midpoint, a 32% increase from the year-ago quarter.
With TSMC's results indicating that the semiconductor market remains strong, AMD shareholders may have more to look forward to in the coming weeks.
