Breakfast News: AMD Pops 17% On Chip Demand Surge

Breakfast News: AMD Pops 17% On Chip Demand Surge

May 6, 2026

Source: Image created by Jester AI.

1. AMD Lifted by AI-led Semiconductor Sales

Advanced Micro Devices (AMD +11.44%) 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 (META 1.16%) 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.

2. Arista Beats on Revenue, Suffers Cost Pressure

Arista Networks (ANET +0.07%) – 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.

3. Other Tuesday Updates You Might Have Missed

• PayPal (PYPL 1.84%) 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 (OXY 1.69%) cut its principal debt by a record $7.1 billion in Q1, a quarter which 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 (CPNG 1.25%) – 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.

4. Your Wednesday Earnings Selection

• Walt Disney (DIS 0.59%) – 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 (UBER 1.67%) – 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 (DASH 4.33%), 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.

5. Your Take

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