AMD reported a strong first quarter with $10.3 billion in revenue, driven by a 57% jump in its data center segment to $5.8 billion. The company's Client and Gaming segment also grew 23% to $3.6 billion, thanks to Ryzen CPUs and Radeon RX graphics cards. Looking ahead, AMD forecast second-quarter revenue of $11.2 billion, beating analyst estimates of $10.52 billion, and shares jumped as much as 20% to a record high. CEO Lisa Su said the server CPU market will grow over 35% annually and reach $120 billion by 2030, and noted deals to sell AI chips to Meta Platforms and OpenAI.
However, AMD executives warned that higher memory and component costs will slow PC and gaming hardware sales in the second half of 2026. CFO Jean Hu expects gaming revenue to fall more than 20% in the second half compared to the first half. The company faces a memory shortage that may slow PC shipments later this year. Meanwhile, electronics manufacturer Celestica, which won a contract to design and manufacture AMD's Helios rack-scale AI architecture, saw its stock soar 345% over the past year as its connectivity and cloud solutions business grew 76% in Q1.
In other AI developments, Nvidia launched the Ising AI model family to improve quantum computer calibration and error correction, performing error correction about 3 times more accurately and up to 2.5 times faster than traditional tools. IonQ stands to benefit as a key hardware partner in Nvidia's quantum ecosystem. Snowflake and Veeva partnered to bring agentic AI to life sciences, connecting Snowflake's AI Data Cloud with the Veeva Vault Platform to support analytics for clinical trials, safety monitoring, and regulatory compliance. Anthropic launched private-label financial AI agents for banks, and Charles Schwab announced AI-powered tools to help clients identify high portfolio activity.
Shopify shares fell 8% despite a strong quarter, with revenue jumping 34% to $3.17 billion. AI-driven traffic to Shopify stores increased eightfold and orders from AI searches grew nearly 13 times, but operating expenses rose over 20% due to AI investments. Apple reported $111.184 billion in revenue for its March quarter, up 16.6%, with iPhone and Services both setting records. Apple's strategy is to let competitors spend billions on AI infrastructure while focusing on being the device where AI is consumed. Zillow reported Q1 revenue up 18% to $750-765 million, with net income rising to $46 million from $8 million a year ago, as it embeds AI throughout its real estate experience.
In global markets, Hong Kong's Hang Seng Tech Index remains in a slump despite several blockbuster listings by Chinese AI firms, as its eligibility rules bar new AI players. Investor frustration is growing, with one social media comment drawing nearly 6,000 likes. The A$37 billion Australian pension fund Brighter Super is shifting its portfolio toward US stocks, driven by AI momentum. Argan directors sold portions of their stock holdings as the company's approximately $2.90 billion backlog is supported by AI and data center power demand, with analysts projecting $1.7 billion revenue by 2029.
Key Takeaways
- AMD reported Q1 revenue of $10.3 billion and forecast Q2 revenue of $11.2 billion, beating estimates of $10.52 billion, with shares jumping up to 20% to a record high.
- AMD's data center segment revenue jumped 57% to $5.8 billion in Q1, driven by AI chip demand from Meta Platforms and OpenAI.
- AMD warned that higher memory and component costs will slow PC and gaming hardware sales in the second half of 2026, with gaming revenue expected to fall more than 20%.
- Celestica's stock soared 345% over the past year, driven by AI data center demand, and it won a contract to design and manufacture AMD's Helios rack-scale AI architecture.
- Nvidia launched the Ising AI model family for quantum computer calibration and error correction, performing error correction about 3 times more accurately and up to 2.5 times faster.
- Snowflake and Veeva partnered to bring agentic AI to life sciences, connecting Snowflake's AI Data Cloud with the Veeva Vault Platform for clinical trials, safety monitoring, and regulatory compliance.
- Anthropic launched private-label financial AI agents for banks, and Charles Schwab announced AI-powered tools to help clients identify high portfolio activity.
- Shopify shares fell 8% despite Q1 revenue jumping 34% to $3.17 billion, as operating expenses rose over 20% due to AI investments.
- Apple reported $111.184 billion in revenue for its March quarter, up 16.6%, with iPhone and Services both setting records, and authorized another $100 billion in buybacks.
- Zillow reported Q1 revenue up 18% to $750-765 million, with net income rising to $46 million, as it rolled out AI-powered search and saw rentals revenue jump 42%.
AMD warns gamers may buy less hardware in 2026
AMD reported strong Q1 2026 earnings with $10.3 billion in revenue. The company's Client and Gaming segment grew 23% to $3.6 billion thanks to Ryzen CPUs and Radeon RX graphics cards. However, AMD executives warned that higher memory and component costs will slow PC and gaming hardware sales in the second half of 2026. CEO Lisa Su said demand for Ryzen CPUs will remain solid in Q2 but shipments will drop later. CFO Jean Hu expects gaming revenue to fall more than 20% in the second half compared to the first half.
AMD warns gamers may buy less hardware in 2026
AMD reported strong Q1 2026 earnings with $10.3 billion in revenue. The company's Client and Gaming segment grew 23% to $3.6 billion thanks to Ryzen CPUs and Radeon RX graphics cards. However, AMD executives warned that higher memory and component costs will slow PC and gaming hardware sales in the second half of 2026. CEO Lisa Su said demand for Ryzen CPUs will remain solid in Q2 but shipments will drop later. CFO Jean Hu expects gaming revenue to fall more than 20% in the second half compared to the first half.
AMD shares jump 12 percent on strong AI demand forecast
AMD forecast second-quarter revenue above Wall Street expectations, helped by strong demand for its data-center chips used in AI. The company expects quarterly revenue of $11.2 billion, beating estimates of $10.52 billion. Shares jumped 12% in extended trading. AMD's data center segment revenue jumped 57% to $5.8 billion in Q1. CEO Lisa Su said the server CPU market will grow over 35% annually and reach $120 billion by 2030. AMD also has deals to sell AI chips to Meta Platforms and OpenAI.
AMD stock hits record high on AI data center spending
AMD shares soared 20% to a record high after the company gave a strong sales forecast. Second-quarter revenue will be $11.2 billion, above analyst predictions of $10.5 billion. The company's data center business grew 57% to $5.8 billion in Q1. CEO Lisa Su said server CPU revenue will grow more than 70% in the current quarter. AMD expects the data center CPU market to reach over $120 billion by 2030. The company faces a memory shortage that may slow PC shipments in the second half of 2026.
Celestica stock soars 345 percent on AI data center demand
Celestica, an electronics manufacturing services company, has seen its stock soar 345% over the past year. The company's connectivity and cloud solutions business grew 76% in Q1, driving overall revenue up 53% to $4.05 billion. Celestica manufactures Ethernet switches for AI data centers and won a contract to design and manufacture AMD's Helios rack-scale AI architecture. The company raised its full-year revenue guidance to $19 billion and expects significantly higher growth in 2027. McKinsey estimates global data center spending could reach $7 trillion by 2030.
Nvidia quantum computing strategy could boost IonQ adoption
Nvidia launched the Ising AI model family in April to improve quantum computer calibration and error correction. The models perform error correction about 3 times more accurately and up to 2.5 times faster than traditional tools. Nvidia focuses on building software and infrastructure for quantum computing rather than making quantum hardware. IonQ stands to benefit as a key hardware partner in Nvidia's quantum ecosystem. IonQ's fifth-generation Tempo system achieved an algorithmic qubit score of 64. The company expects 2026 revenues between $225 million and $245 million.
Snowflake and Veeva partner to bring AI agents to life sciences
Snowflake and Veeva are partnering to bring agentic AI to the life sciences sector. The collaboration connects Snowflake's AI Data Cloud for Healthcare and Life Sciences with the Veeva Vault Platform. The new Snowflake Openflow Connector for Veeva Vault allows secure integration of read-only Veeva data into Snowflake. This supports analytics and AI applications for clinical trials, safety monitoring, regulatory submissions, quality control, and commercial operations. The partnership aims to break down data silos and enable faster cross-functional insights. It also automates data pipelines for regulatory compliance.
Anthropic launches private-label financial AI agents for banks
Anthropic, maker of the Claude AI model, launched a suite of private-label financial AI agents for financial institutions. The agents are built using skills, connectors, and subagents bundled into templates for sale. On the same day, Charles Schwab announced AI-powered tools to help clients identify high portfolio activity. Schwab shares rose 2.5% and Raymond James shares rose 3.5% on the news. The move is seen as a major development in using AI in the financial services industry.
Shopify shares fall 8 percent despite strong AI growth
Shopify shares fell 8% after the company gave a lukewarm sales forecast. The e-commerce company expects second-quarter sales and profit largely in line with estimates. Revenue jumped 34% to $3.17 billion in Q1, beating expectations. AI-driven traffic to Shopify stores increased eightfold and orders from AI searches grew nearly 13 times. However, operating expenses rose over 20% due to AI investments. Shopify's Sidekick assistant saw weekly active stores using it jump over four times in Q1.
Apple lets rivals build AI while focusing on consumer devices
Apple reported $111.184 billion in revenue for its March quarter, up 16.6% year over year. iPhone did $56.994 billion and Services did $30.976 billion, both records. Apple's strategy is to let competitors like Nvidia and Alphabet spend billions on AI infrastructure while Apple focuses on being the device where AI is consumed. The company has 2.5 billion active devices and a Services business with 76.7% gross margins. Apple authorized another $100 billion in buybacks and raised the dividend 4% to $0.27 per share.
Zillow uses AI to boost revenue 18 percent in flat housing market
Zillow Group reported Q1 revenue of $750 million to $765 million, up 18% year over year. Net income rose to $46 million from $8 million a year ago. The company is embedding AI throughout its real estate experience. Zillow rolled out AI-powered search to about 5% of its audience. Its Follow Up Boss CRM tool is becoming an AI-powered workflow engine with monthly active users up over 70%. Rentals revenue jumped 42% to $183 million. Zillow shares dropped about 6% in after-hours trading due to Q2 revenue guidance slightly below expectations.
Hong Kong tech index falls despite Chinese AI stock surge
Hong Kong has seen several blockbuster listings by Chinese AI firms recently, but the Hang Seng Tech Index remains in a slump. The index is dominated by tech conglomerates, electric vehicle makers, e-commerce platforms, and food delivery companies. Its eligibility rules have so far barred the inclusion of new AI players. Investor frustration is growing as the index fails to ride the AI boom. One user on social media commented "Please save Hang Seng Tech," drawing nearly 6,000 likes.
Australian pension fund shifts to US stocks on AI boom
Brighter Super, a A$37 billion Australian pension fund, is moving its portfolio away from local stocks toward global stocks. The shift is driven by the AI momentum in the US. Chief Investment Officer Damien Webb said the move is a modest, tactical play. The fund is trimming its domestic stock portfolio at the margins. Webb returned to Australia to join the fund after running Aware Super's international operations from London.
Argan insider sales reveal focus on AI-driven backlog
Argan directors Peter W. Getsinger and Lisa Larroque Alexander sold portions of their stock holdings in late April 2026. The company has an approximately $2.90 billion backlog supported by AI and data center power demand. Argan boosted its share repurchase authorization to $200 million and extended the program to 2030. Analysts project Argan could reach $1.7 billion revenue and $224.5 million earnings by 2029. The company's success depends on converting its AI-driven backlog into profitable projects while managing execution risk.
Sources
- AMD warns of gaming hardware sales slowdown in 2026 as Ai-induced demand spurs cost increases
- AMD warns of gaming hardware sales slowdown in 2026 as AI-induced demand spurs cost increases
- AMD forecasts revenue above expectations on strong AI demand, shares jump 12%
- AMD soars as AI demand fuels better-than-expected sales outlook
- This Super Artificial Intelligence (AI) Stock Has Soared by More Than 300%. Here's Proof That It Is Headed Even Higher.
- The Hidden Quantum Computing Play Inside Nvidia's AI Strategy That Most Investors Are Missing
- Snowflake, Veeva Push AI Agents in Life Sciences
- Anthropic launches private-label financial AI 'agents' on same day as Schwab enters artificial intelligence fray -- and its shares rise with LPL, Raymond James
- Shopify's AI pitch fails to lift shares after lukewarm forecast
- While Big Tech Spends $725 Billion Building AI, Apple Is Letting Them. And That May Be the Smartest Move in Tech
- Zillow Group leans into AI as revenue climbs 18% in flat housing market
- Chinese AI stocks are surging. So why is Hong Kong’s tech index still falling?
- Australian Pension Fund Tilts to US Over Local Stocks on AI Boom
- What Do Argan (AGX) Insider Sales Reveal About Its AI-Driven Backlog Strategy?
Comments
Please log in to post a comment.