TLDR
- Advanced Micro Devices surged 20% after data-center sales jumped 57% year-over-year in Q1
- Super Micro Computer rallied 15% on a stronger-than-expected fiscal Q3 earnings beat
- Oil stocks fell sharply as U.S.-Iran peace talk progress pushed crude prices lower
- Cruise lines and Uber jumped as falling fuel costs and strong bookings lifted sentiment
- Disney rose 4.9% in its first earnings report under new CEO Josh D’Amaro
Advanced Micro Devices had a standout day on Wall Street, with shares jumping 20% after the chipmaker posted first-quarter earnings and revenue above analyst expectations.
Advanced Micro Devices, Inc., AMD
The company’s data-center segment was the main driver, with sales up 57% compared to the same period last year. AMD also gave strong guidance for the current quarter, pointing to continued demand from the artificial intelligence sector.
Intel got a lift from AMD’s results too, rising 6.3% on top of a 13% gain the session before. AMD’s CEO Lisa Su said the market for central processing units in AI data centers could grow 35% annually, reaching $120 billion by 2030. Intel and AMD are the two dominant players in that market.
Super Micro Computer jumped 15% after beating Wall Street estimates for fiscal third-quarter earnings. The company also issued a revenue outlook for the fourth quarter that came in higher than analysts had forecast.
Super Micro’s stock had fallen 77% from its March 2024 record high, weighed down by a series of controversies. The U.S. government charged a co-founder and two others over an alleged plan to smuggle U.S.-assembled servers to China. Super Micro was not named as a defendant and said it is cooperating with the government.
Oil Stocks Under Pressure
Occidental Petroleum fell 8.5%, while Chevron and Exxon dropped 5.1% and 4.4% respectively. The declines came as President Trump said the U.S. and Iran had made “great progress” in peace talks, raising expectations of a deal and pushing oil prices lower.
Falling oil prices helped cruise lines. Carnival gained 8.3%, Royal Caribbean added 7.6%, and Norwegian Cruise Line rose 6.4%.
Arista Networks dropped 9.2% despite beating first-quarter expectations. The networking company projected an adjusted operating margin of 46% to 47% for the current quarter, down from 48.8% a year ago, which disappointed investors.
Earnings Across Sectors
Walt Disney rose 4.9% in its first earnings report under new CEO Josh D’Amaro, with fiscal second-quarter revenue topping estimates. D’Amaro also said Disney remains open to partnerships with OpenAI and others after a previously announced deal with the ChatGPT maker fell through.
Uber jumped 9.3% after reporting higher quarterly revenue and gross bookings. Trip volumes and active users continued to grow, though revenue came in slightly below analyst estimates.
CVS Health gained 4.5% after posting first-quarter earnings above forecasts. The company’s Aetna insurance unit showed improving profitability, with its medical benefit ratio falling to 84.6% from 87.3% a year ago.
Novo Nordisk’s U.S.-listed shares rose 8% after the Danish drugmaker raised its full-year profit guidance. The company cited a surge in sales of its Wegovy weight-loss drug.
Compass surged 31% after reporting a surprise first-quarter profit. Revenue jumped 99% year-over-year to $2.7 billion, driven by its merger with rival Anywhere.
Apollo Global Management crossed $1 trillion in assets under management, sending its shares higher.
Lucid Group fell 3.5% after reporting a wider-than-expected loss for the first quarter. The electric vehicle maker’s stock is down 41% this year and 74% over the past 12 months.
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