Market Movers Today: AMD (AMD) Soars 20%, Oil Stocks Tumble on Iran Deal Optimism

Quick Summary

• Advanced Micro Devices climbed 20% following a 57% year-over-year surge in data-center revenue during the first quarter
• Super Micro Computer gained 15% after delivering fiscal third-quarter results that exceeded Wall Street’s projections
• Energy sector stocks declined as diplomatic progress between the U.S. and Iran sent crude oil prices lower
• Uber and cruise operators benefited from declining fuel expenses and robust demand indicators
• Disney shares increased 4.9% following the company’s maiden earnings release under CEO Josh D’Amaro

Advanced Micro Devices captured investor attention with an impressive 20% stock surge after delivering first-quarter financial results that exceeded analyst forecasts across both revenue and profit metrics.

Advanced Micro Devices, Inc., AMD

The semiconductor manufacturer’s data-center division powered the performance, registering a 57% increase in sales versus the prior-year period. The company’s forward-looking guidance for the second quarter also impressed investors, signaling sustained momentum from artificial intelligence infrastructure spending.

Intel benefited from AMD’s positive momentum, advancing 6.3% following a 13% climb in the previous trading session. AMD CEO Lisa Su highlighted that the central processing unit market for AI data centers could expand at a 35% compound annual growth rate, potentially reaching $120 billion by the end of the decade. Both Intel and AMD command the majority share of this expanding market segment.

Super Micro Computer rallied 15% after reporting fiscal third-quarter earnings that surpassed Wall Street expectations. The server manufacturer also provided fourth-quarter revenue projections that topped analyst consensus estimates.

The company’s shares had plummeted 77% from their March 2024 peak amid several controversies. Federal authorities filed charges against a co-founder and two additional individuals for allegedly orchestrating a scheme to illegally export U.S.-manufactured servers to China. Super Micro was not identified as a defendant and has stated it is working with authorities.

Energy Sector Faces Headwinds

Occidental Petroleum tumbled 8.5%, while Chevron and Exxon declined 5.1% and 4.4% respectively. The selloff occurred after President Trump announced “great progress” in diplomatic negotiations with Iran, raising market expectations for a potential agreement that would ease oil prices.

The decline in crude prices provided a boost to cruise line operators. Carnival climbed 8.3%, Royal Caribbean advanced 7.6%, and Norwegian Cruise Line gained 6.4%.

Arista Networks fell 9.2% despite reporting first-quarter results that beat expectations. The network equipment provider forecast an adjusted operating margin between 46% and 47% for the ongoing quarter, representing a decline from the 48.8% margin recorded in the year-ago period, which concerned investors.

Corporate Earnings Highlights

Walt Disney climbed 4.9% in its inaugural earnings announcement under newly appointed CEO Josh D’Amaro, with fiscal second-quarter sales exceeding projections. D’Amaro indicated the entertainment giant continues exploring collaborative opportunities with OpenAI and similar companies following the collapse of a previously announced agreement with the ChatGPT developer.

Uber soared 9.3% after delivering increased quarterly revenue and total bookings. The ride-sharing platform continued seeing expansion in trip volumes and active platform users, although revenue fell marginally short of analyst projections.

CVS Health advanced 4.5% following first-quarter earnings that topped forecasts. The company’s Aetna insurance division demonstrated enhanced profitability, with its medical benefit ratio declining to 84.6% from 87.3% in the comparable year-earlier period.

Novo Nordisk’s American depositary receipts jumped 8% after the Danish pharmaceutical company elevated its full-year earnings outlook. Management attributed the revision to booming demand for its Wegovy obesity treatment.

Compass skyrocketed 31% after announcing an unexpected first-quarter profit. The real estate brokerage reported revenue that nearly doubled year-over-year to $2.7 billion, fueled by its combination with competitor Anywhere.

Apollo Global Management surpassed the $1 trillion milestone in assets under management, lifting its share price.

Lucid Group dropped 3.5% after posting a first-quarter loss that exceeded analyst estimates. The electric vehicle manufacturer’s stock has declined 41% year-to-date and 74% over the trailing twelve months.

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