AMD Stock Is Soaring This Morning. Here's Why Investors Are Excited
Key Points
Taiwan Semiconductor, a leading processor manufacturer, reported impressive Q1 sales.
Investors took that to mean that AMD could soon report impressive first-quarter results of its own.
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Shares of Advanced Micro Devices (NASDAQ: AMD) were advancing this morning after investors regained some of their optimism that the tech sector will recover from its months-long decline. That sentiment was likely spurred by semiconductor manufacturer Taiwan Semiconductor reporting strong first-quarter sales growth.
AMD shares were up by 6.4% as of 10:58 a.m. ET.
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Rising tides lift all boats
Taiwan Semiconductor, or TSMC, is the world's leading semiconductor manufacturer, and the company said this morning that its sales jumped 35% to $35.6 billion in the first quarter. That's a very good indication that demand for AI processors is still very high, which is great news for AMD's business.
AMD's data center business performed very well in Q4 2025, with revenue rising 39% to a record $5.4 billion.
The company will report its Q1 2026 results on May 5, and investors are hoping that TSMC's growth means that AMD's data center sales will benefit from the same AI demand its peers are experiencing.
Additionally, investors appear to be remaining somewhat optimistic that the current ceasefire between Iran and the U.S. could lead to further de-escalation. Vice President Vance is traveling to Pakistan this weekend for negotiations with Iran.
The war has caused energy prices to soar, resulting in higher inflation in the U.S. and putting pressure on consumer sentiment.
A clearer picture of chip demand
AMD shareholders will get a clearer picture of semiconductor demand when AMD reports Q1 results at the beginning of May. Management expects total revenue of $9.8 billion at the midpoint, a 32% increase from the year-ago quarter.
With TSMC's results indicating that the semiconductor market remains strong, AMD shareholders may have more to look forward to in the coming weeks.
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Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.
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