AMD reported a blowout first-quarter 2026 with revenue jumping 38% to $10.25 billion and earnings per share rising 43% to $1.37. Data center revenue grew 57% driven by increased demand for AMD GPUs and CPUs from major customers including Meta, Amazon, Google, Microsoft, and Tencent. The company now expects the server CPU market to grow over 35% annually, with guidance showing potential revenue increases of 46% in the current quarter to $11.2 billion.
While Nvidia prepares to report earnings on May 20, investors are increasingly looking at alternatives as big tech firms build custom chips to reduce dependence. Amazon's custom silicon business now has a $20 billion annual revenue run rate growing at a triple-digit pace, with CEO Andy Jassy stating it could reach $50 billion if sold separately. Broadcom is also designing custom chips for Google, OpenAI, and Meta, positioning itself as a leader in energy-efficient ASICs for inference workloads.
The AI infrastructure rally has shifted focus from software to hardware, with Point72's Turion fund gaining 15% in April. Tech hedge funds posted record gains, with memory chip makers like Micron and SanDisk surging alongside networking and power system suppliers. However, investors face uncertainty as Michael Burry bets against semiconductor stocks, warning that some may be too expensive despite the AI boom.
Other significant developments include Cerebras raising its IPO target price to $150-$160 amid 20 times oversubscription, with OpenAI committing $20 billion to rent 750 megawatts of capacity. Meta faces internal backlash over its new AI training data program that collects keystrokes and screen content without an opt-out option. Meanwhile, Cisco shares surged 20% on restructuring progress and plans to expand its silicon portfolio, while Kioxia prepares a US listing after forecasting $8.2 billion in operating profits.
Key Takeaways
['AMD reported Q1 2026 revenue of $10.25 billion, a 38% increase, with data center revenue up 57%.', 'Major customers Meta, Amazon, Google, Microsoft, and Tencent are increasing purchases of AMD chips.', "Amazon's custom silicon business has a $20 billion annual revenue run rate growing at a triple-digit pace.", 'Broadcom is designing custom chips for Google, OpenAI, and Meta, with over $100 billion in AI ASIC revenue expected by fiscal 2027.', 'Cerebras raised its IPO target price to $150-$160 due to 20 times oversubscription.', 'OpenAI committed $20 billion to rent 750 megawatts of Cerebras capacity through 2028.', "Point72's Turion fund gained 15% in April as investors shifted focus to AI infrastructure hardware.", 'Michael Burry has purchased put options on Nvidia and other chip companies, warning stocks may be too expensive.', 'Meta employees are protesting a new AI training program that collects keystrokes and screen content without an opt-out option.', 'Cisco shares surged 20% on restructuring progress and plans to expand its silicon portfolio with more networking chips.']AMD Stock Surges After Blowout Earnings Report
Advanced Micro Devices reported strong first-quarter 2026 results that impressed investors. Revenue jumped 38% to $10.25 billion while earnings per share rose 43% to $1.37. Data center revenue grew 57% as demand for AMD GPUs and CPUs increased. Major customers like Meta, Amazon, Google, Microsoft, and Tencent are buying more of AMD's chips. The company now expects the server CPU market to grow over 35% annually. AMD guidance shows revenue could increase 46% in the current quarter to $11.2 billion.
Analysts Prefer Amazon Over Nvidia For AI Growth
Nvidia is set to report earnings on May 20 with shares near record highs. However, some investors worry that big customers are building their own chips to reduce dependence on Nvidia. Broadcom is designing custom chips for Google, OpenAI, and Meta. Amazon offers an attractive alternative with its growing custom silicon business. Amazon's chips business now has a $20 billion annual revenue run rate and is growing at a triple-digit pace. CEO Andy Jassy stated that if sold separately, the chip business could reach $50 billion in annual revenue.
Cerebras IPO Raises Target Price Amid High Demand
Cerebras is launching its initial public offering on Thursday with strong investor interest. The company raised its target share price to between $150 and $160 due to 20 times oversubscription. Cerebras uses unique wafer-scale chips that are 30 times larger than Nvidia's Blackwell B200 package. OpenAI has committed $20 billion to rent 750 megawatts of Cerebras capacity through 2028. Amazon Web Services also plans to buy Cerebras chips for its data centers. The company faces risks including customer concentration and the challenge of building 250 megawatts of capacity by year-end.
Broadcom and AMD Offer Better AI Growth Than Nvidia
The AI market is shifting from training models to inference tasks, creating new growth opportunities. Broadcom is a leader in custom chips called ASICs that are energy efficient for inference workloads. Broadcom helped Alphabet develop TPUs and has over $100 billion in AI ASIC revenue expected by fiscal 2027. Advanced Micro Devices is also well positioned with deals for six gigawatts of GPUs each from OpenAI and Meta. AMD's ROCm software platform has improved significantly for inference tasks. Both companies are expected to be big winners in the next phase of AI development.
Point72 Turion Fund Leads AI Infrastructure Rally
Point72's Turion fund gained 15% in April as investors focus on AI infrastructure. The fund is managed by Eric Sanchez and focuses on semiconductors, memory chips, and data center hardware. This marks a shift from earlier AI rallies that rewarded software companies. The current phase rewards managers who identify companies solving physical bottlenecks in AI deployment. Point72 has about $50.7 billion in assets under management as of April 2026. The firm uses its scale to find opportunities across the entire AI supply chain.
Tech Hedge Funds Post Record Gains on AI Hardware
Tech-focused hedge funds had their best April since December 1999 due to AI infrastructure growth. Stock-picking funds gained 6.5% while memory chip makers like Micron and SanDisk surged. The market is now focused on hardware components like chips, memory, networking gear, and power systems. Point72 and Whale Rock Capital were among the top beneficiaries of this rally. Investors are rotating into companies that supply the physical infrastructure needed for AI. This trend highlights the importance of the hardware stack in the current AI cycle.
Investors Weigh Nvidia Gains Against Bubble Warnings
AI investors holding large profits face a difficult decision about their positions. Some stocks have gained over 100% in the past year while others are poised for breakouts. Michael Burry, known for predicting the 2008 financial crisis, is betting against semiconductor stocks. He has purchased put options on Nvidia and other chip companies. Burry believes some semi stocks may be too expensive despite the AI boom. Investors must decide whether to let winners ride or take profits before potential corrections.
Concentric AI Launches Anthropic Compliance API
Concentric AI announced its first integration with Anthropic's Claude platform on May 15, 2026. The new API allows users to audit prompts, responses, and policy violations in real-time. This tool helps organizations manage sensitive data like personal information and health records. The integration strengthens data security governance for Claude platform users. Concentric AI's Semantic DLP technology provides visibility and control over sensitive data usage. The Anthropic Compliance API is available as a separate module for the Concentric AI Claude platform.
Abilene Housing Concerns Rise With AI Data Center Boom
A new website highlights growing concerns in Abilene, Texas about the Stargate AI project. The $500 billion infrastructure plan involves OpenAI, Oracle, and SoftBank. Supporters say the project will bring jobs and economic growth to the city. However, residents worry about rising rent prices and limited apartment availability. Construction has brought many workers into the area, increasing housing demand. The website launch adds another voice to the community debate about balancing growth with affordability.
Broadcom Named Top Pick For AI Data Center Growth
Analysts have named Broadcom as a top stock to buy in the current AI trend. The chip leader recently formed a 19-week cup base pattern indicating strong momentum. Broadcom is a key component in the AI data center power trend led by tech names. The stock currently trades within the buy zone according to technical analysis. Broadcom's position in the AI infrastructure market makes it an attractive investment opportunity.
Meta Employees Protest New AI Training Data Program
Meta is shifting to become an AI-first organization but faces internal backlash. CEO Mark Zuckerberg has invested billions in artificial intelligence development. The company now collects keystrokes and screen content to train AI models. CTO Andrew Bosworth confirmed there is no opt-out option for corporate laptops. Employees have raised privacy concerns about workplace monitoring and security risks. Meta is also factoring AI usage into performance reviews and tracking token consumption. The company recently announced 10% workforce cuts to fund AI research and data center investments.
Cisco Stock Jumps on AI Transition Results
Cisco shares surged 20% higher ahead of the market open on May 14, 2026. The company reported upbeat earnings based on progress in restructuring its business. CFO Mark Patterson revealed plans to expand its silicon portfolio with more networking chips. CEO Chuck Robbins announced nearly 4,000 job cuts as the company increases AI usage internally. Cisco is shifting investments toward areas with strong demand and long-term value creation. The company is pivoting to products designed for growing data center needs.
Kioxia Prepares US Listing After Record Profits
Kioxia is preparing to list American depositary shares in the United States. The Japanese semiconductor company forecast operating profits of $8.2 billion for the quarter ending in June. This figure is far higher than average analyst estimates. Kioxia also posted record earnings of $596.8 billion for the quarter ending in March. The company has been riding the AI boom to achieve these financial results.
CoreWeave Stock Rises With New AI Training Tool
CoreWeave stock jumped after launching Sandboxes for AI agent training and model evaluation. The new product provides secure, isolated environments for reinforcement learning tasks. CoreWeave aims to close the execution gap in AI training workflows. Many organizations struggle with custom-built systems that do not integrate well with their infrastructure. The Sandboxes product works within customer infrastructure or with Weights & Biases serverless offerings. This launch comes two weeks after CoreWeave expanded its unified AI training system capabilities.
Sources
- After AMD's Blowout Earnings Report, Is This AI Stock About to Enter the $1 Trillion Club?
- Nvidia Reports Earnings This Month, and I'm Not Buying Shares. 1 AI Stock to Buy Now Instead.
- Should You Buy the Cerebras IPO? Here's How the AI Chip Stock Stacks Up.
- 2 Growth Stocks Are the Smarter Plays in the AI Supercycle Than Nvidia Right Now
- Point72’s AI Standout: Steve Cohen’s Turion Fund Is a Defining Trade of the AI Infrastructure Boom:
- The “Hardware Golden Age”: AI Infrastructure Trade Powers a Huge Month for Tech Hedge Funds
- AI Investors Sitting on Big Gains Face a Choice: Let Winners Ride or Heed Michael Burry’s Bubble Warning
- Concentric AI’s Industry-First Anthropic Compliance API Integration Strengthens Data Security Governance for Claude Platform Users
- AI Boom Hits Abilene as New Website Raises Housing, Growth Concerns
- AI Data Center Play And Chipmaker Broadcom Stock Named Top Pick By Analysts
- Meta Employee Backlash: Privacy Concerns Rise As AI Training Triggers Mass Layoffs
- Breakfast News: Cisco Evolves For The New AI Era
- Kioxia Prepares US Listing After Riding AI Boom to Record Profit
- CoreWeave Stock (CRWV) Jumps as It Targets ‘Execution Gap’ in AI Agent Training
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