New York, May 5, 2026, 19:01 EDT
U.S. stocks finished Tuesday at fresh records as enthusiasm for artificial intelligence spilled into the after-hours session. Advanced Micro Devices surged 12% post-close, boosted by a revenue forecast that topped expectations. The S&P 500 and Nasdaq wrapped up at all-time highs, with AMD’s gains coming as shares traded after the 4 p.m. New York bell.
The rally faces a real-time test now, with earnings rolling in from companies most exposed to AI spending. Investors have shrugged off war-driven oil spikes and rising bond yields—as long as profits keep rising.
The S&P 500 closed up 0.81% at 7,259.22. The Nasdaq jumped 1.03% to 25,326.13, while the Dow Jones Industrial Average moved 0.73% higher to 49,298.25. Every S&P 500 sector finished in positive territory, with materials and information technology leading the way.
“Markets are following fundamentals,” said Tom Hainlin, investment strategist at U.S. Bank Wealth Management, speaking to Reuters. He highlighted robust earnings and business spending that remains healthy. S&P 500 companies are pacing for 28% first-quarter earnings growth from a year ago—marking the biggest profit jump since 2021, according to Tajinder Dhillon, LSEG’s head of earnings research. Reuters
AMD is projecting revenue of roughly $11.2 billion for the second quarter, give or take $300 million, beating the $10.52 billion analysts had penciled in. That’s fueled by robust demand for data-center chips powering AI applications. Graphics processing units (GPUs) are the workhorses for AI model training and inference, while central processing units (CPUs) take care of general server workloads.
AMD reported a 38% jump in first-quarter revenue, reaching $10.3 billion, with adjusted earnings at $1.37 per share. “We delivered an outstanding first quarter, driven by accelerating demand for AI infrastructure,” said CEO Lisa Su. She pointed out that data centers have become AMD’s primary growth engine for both revenue and earnings. Advanced Micro Devices, Inc.
The rivalry is clear-cut. AMD’s chasing Nvidia for a bigger piece of the AI chip pie, while Intel fights to regain ground in both server CPUs and manufacturing. “Insatiable AI compute demand” is driving AMD, Jake Behan of Direxion noted, but he also pointed out that investors are now zeroed in on just how much of that demand actually converts to high-margin sales. Reuters
Intel shares spiked 13% on news from Bloomberg that Apple might tap the company’s chip manufacturing. The PHLX semiconductor index shot up 4.2% to hit an all-time high, now up 55% for the year—a move that underscores just how tightly investor excitement is zeroing in on semiconductor and AI infrastructure names.
Super Micro Computer delivered another sharp move post-close. Shares jumped 17% in late trading after the server company projected fourth-quarter revenue between $11 billion and $12.5 billion—topping the $11.07 billion consensus from LSEG.
Charles Liang, founder and CEO of Super Micro, pointed to the company’s ramp-up as a “total datacenter infrastructure provider,” saying momentum is picking up. Fresh manufacturing capacity in Silicon Valley, according to Liang, puts Super Micro in a prime spot to capture AI and enterprise demand. Third-quarter net sales hit $10.2 billion—jumping from $4.6 billion last year, though down from $12.7 billion in the previous quarter. Supermicro
Oil’s retreat offered stocks a breather. Brent crude slid 4% to $109.87 a barrel, retreating after a short-lived surge past $115 on Monday. U.S. officials maintained the Iran ceasefire was still holding, even as new tensions flared near the Strait of Hormuz. The 10-year Treasury yield dipped to 4.42%—still significantly higher than prewar marks.
The rally’s foundations look shaky in places. AMD’s leadership warned that pricier memory and components might drag down PC shipments in the back half, adding they’re bracing for gaming revenue to drop over 20% compared with the first half. Over at Super Micro, an independent probe into export-control matters could disrupt both their forecasts and previous results.
Wednesday brings a straightforward setup, if not an easy one: indexes are at records, chips continue to run hot, and AI earnings have a tougher hurdle to clear. After hours, AMD and Super Micro drew buyers—momentum for the theme is holding. Now, though, it comes down to whether guidance from the sector can keep these valuations in line.
