Stock Market Today, May 6: AMD Surges After Q1 Beat and Strong Q2 Data Center Outlook
Advanced Micro Devices (NASDAQ:AMD), a leading CPU and GPU provider for PCs and data centers, closed Wednesday at $421.39, rising 18.61%. The stock moved higher after a Q1 2026 earnings beat and stronger Q2 guidance that underscored robust AI and data center demand. Investors will watching closley on how sustained AI infrastructure spending will support future revenue growth.
The company’s trading volume reached 85.2 million shares, which is about 113% above compared with its three-month average of 40 million shares.
How the markets moved today
The S&P 500 (SNPINDEX:^GSPC) climbed 1.46% to 7,365.12, while the Nasdaq Composite (NASDAQINDEX:^IXIC) advanced 2.02% to finish at 25,839. Within semiconductors, industry peers Nvidia (NASDAQ:NVDA) closed at $207.83, up 5.77%, and Intel (NASDAQ:INTC) finished at $113.01, rising 4.49% as investors responded to the AI-focused chip rally.
What this means for investors
AMD shares rose sharply after first-quarter results demonstrated strong AI-driven revenue, highlighted by a 57% increase in data center sales. The company reported total revenue of $10.3 billion, up 38% year-over-year, and non-GAAP earnings of $1.37 per share. Guidance for approximately $11.2 billion in second-quarter revenue further signaled robust demand for server CPUs and AI accelerators.
These results prompted Wall Street to reevaluate AMD’s position in AI computing. Goldman Sachs raised its price target to $450 and emphasized AMD’s potential in enterprise agentic AI. The key question is whether AMD can maintain its second-quarter revenue outlook and continue data center growth, especially as Nvidia sets the pace in GPUs and Intel remains a key competitor for server workloads.
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Eric Trie has positions in Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Goldman Sachs Group, Intel, and Nvidia. The Motley Fool has a disclosure policy.
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