TLDR
- TSMC reported Q1 2026 sales of $35.6 billion, up 35% year-on-year, signalling strong chip demand
- AMD stock jumped as much as 6.4% on Friday morning before settling around 3.6â3.8% higher
- Investors read TSMC’s strong chip orders as a positive signal for AMD’s upcoming Q1 results
- AMD is due to report its own Q1 2026 earnings on May 5, with management guiding for $9.8 billion in revenue
- Wall Street analysts have a Moderate Buy consensus on AMD with an average price target of $284.68
Advanced Micro Devices (AMD) stock climbed sharply on Friday after Taiwan Semiconductor Manufacturing Company reported blowout first-quarter results, giving the broader chip sector a lift.
Advanced Micro Devices, Inc., AMD
TSMC said its Q1 2026 revenue jumped 35% to $35.6 billion. That number caught the market’s attention fast.
Investors took the report as a strong signal that AI chip demand is holding up well. AMD, which makes CPUs and GPUs used in AI data centers, was seen as a direct beneficiary.
AMD stock was up as much as 6.4% on the day before settling to a gain of around 3.6â3.8% by late afternoon. Trading volume came in at roughly 20 million shares on the day, below its three-month daily average of 33.17 million.
The stock is now up nearly 15% year-to-date and has gained around 153% over the past 12 months.
AMD’s Own Earnings Are Coming
AMD will report its Q1 2026 results on May 5. Management has guided for revenue of $9.8 billion at the midpoint, which would represent a 32% increase from the same quarter a year ago.
In Q4 2025, AMD’s data center segment posted revenue of $5.4 billion, up 39% year-on-year â a record at the time. Investors are now hoping Q1 keeps that momentum going.
TSMC’s strong orders suggest CPU and GPU demand remained solid through the first quarter. That is encouraging for AMD, which relies heavily on TSMC to manufacture its chips.
There is also a broader macro backdrop at play. A ceasefire between Iran and the U.S. has lifted some investor sentiment. Vice President Vance is traveling to Pakistan this weekend for further negotiations, and markets appear to be factoring in some hope of further de-escalation.
What Wall Street Thinks
Analysts on Wall Street hold a Moderate Buy consensus on AMD. That rating is based on 21 Buy ratings and eight Hold ratings filed over the past three months.
The average price target sits at $284.68, implying roughly 16% upside from current levels.
AMD’s current price is $245.17, with a 52-week range of $83.75 to $267.08 and a market cap of around $386 billion.
The day’s trading range was $238.98 to $249.56.
The next major catalyst for AMD will be its May 5 earnings call, where investors will be looking closely at data center revenue figures and any update to full-year guidance.
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