TLDR
- Advanced Micro Devices climbed 20% following a 57% year-over-year surge in data-center revenue during Q1
- Super Micro Computer gained 15% after delivering fiscal Q3 earnings that exceeded Wall Street projections
- Energy sector stocks declined as diplomatic progress between the U.S. and Iran sent crude oil prices downward
- Cruise operators and Uber saw significant gains thanks to lower fuel expenses and robust demand trends
- Disney advanced 4.9% following its inaugural earnings release with Josh D’Amaro serving as CEO
Advanced Micro Devices delivered one of the session’s most impressive performances, with shares climbing 20% following the release of first-quarter financial results that surpassed analyst forecasts for both earnings and revenue.
Advanced Micro Devices, Inc., AMD
The chipmaker’s data-center division led the charge, generating revenue that increased 57% versus the comparable quarter from the previous year. AMD’s management team provided optimistic projections for the upcoming quarter, indicating sustained momentum from artificial intelligence applications.
Intel shares benefited from AMD’s positive performance, advancing 6.3% after already posting a 13% increase during the prior trading session. AMD CEO Lisa Su projected that the central processing unit market serving AI data centers could expand at a 35% compound annual growth rate, potentially reaching $120 billion by the end of the decade. Intel and AMD hold dominant positions within this rapidly growing market segment.
Super Micro Computer rallied 15% after delivering fiscal third-quarter earnings that topped analyst expectations. The server manufacturer also provided fourth-quarter revenue guidance that exceeded consensus estimates from Wall Street researchers.
Super Micro’s shares had experienced a 77% decline from their March 2024 peak, pressured by several controversies. Federal authorities charged a company co-founder and two additional individuals in connection with an alleged scheme to illegally export U.S.-manufactured servers to China. Super Micro was not identified as a defendant in the case and stated it is providing full cooperation with government investigators.
Oil Stocks Under Pressure
Occidental Petroleum retreated 8.5%, while Chevron and Exxon declined 5.1% and 4.4% respectively. The selloff occurred after President Trump announced that negotiations between the U.S. and Iran had achieved “great progress,” fueling optimism about a potential agreement and driving oil prices downward.
The drop in oil prices provided a tailwind for cruise line operators. Carnival advanced 8.3%, Royal Caribbean climbed 7.6%, and Norwegian Cruise Line increased 6.4%.
Arista Networks slid 9.2% despite surpassing first-quarter analyst expectations. The networking equipment manufacturer guided toward an adjusted operating margin of 46% to 47% for the current quarter, representing a decline from the 48.8% margin achieved during the same period last year, which left investors disappointed.
Earnings Across Sectors
Walt Disney climbed 4.9% following its inaugural earnings announcement with Josh D’Amaro as CEO, with fiscal second-quarter revenue exceeding analyst projections. D’Amaro indicated that Disney continues to explore potential collaborations with OpenAI and other technology firms following the collapse of a previously announced partnership with the ChatGPT developer.
Uber surged 9.3% after disclosing higher quarterly revenue and gross bookings figures. The ride-sharing platform reported ongoing expansion in trip volumes and active user counts, although revenue fell marginally short of analyst consensus estimates.
CVS Health rose 4.5% after announcing first-quarter earnings that beat forecasts. The healthcare company’s Aetna insurance division demonstrated enhanced profitability, with its medical benefit ratio improving to 84.6% from 87.3% during the year-ago period.
Novo Nordisk’s U.S.-listed shares advanced 8% following the Danish pharmaceutical manufacturer’s decision to increase its full-year profit outlook. The company attributed the revision to accelerating sales of its Wegovy obesity treatment medication.
Compass skyrocketed 31% after delivering an unexpected first-quarter profit. Revenue surged 99% year-over-year to $2.7 billion, powered by the real estate brokerage’s combination with competitor Anywhere.
Apollo Global Management surpassed the $1 trillion milestone in assets under management, propelling its shares higher.
Lucid Group dropped 3.5% after announcing a first-quarter loss that exceeded analyst projections. The electric vehicle manufacturer’s stock has fallen 41% year-to-date and 74% over the trailing twelve-month period.
