Shares of Advanced Micro Devices jumped 7.9% through 12:20 p.m. ET, driven by high artificial intelligence infrastructure spending and a strong earnings report from cloud provider CoreWeave.
The market rally reflects renewed enthusiasm across semiconductor stocks amid a positive outlook for data-center sales.
CoreWeave reported its third-quarter earnings, posting a smaller loss than anticipated at $1.27 per share alongside revenue of $3.66 billion. The cloud provider raised its full-year 2026 revenue guidance to a range between $13.0 billion and $13.3 billion, while committing to capital expenditures between $37 billion and $39 billion.
Additional momentum for Advanced Micro Devices stems from a UBS report highlighting a 31% year-over-year jump in server CPU shipments during the third quarter.
According to UBS analyst Timothy Arcuri, Advanced Micro Devices maintains a stable CPU market share of approximately 28.4%. In contrast, competitor Intel experienced a 240-basis-point decline in CPU market share over the same period.
Arcuri also observed that rising CPU pricing is contributing to improved profit margins for the company. Projections from the UBS analysis suggest that total CPU sales could reach $210 billion by 2030, which could translate to nearly $60 billion in CPU sales for Advanced Micro Devices if it maintains its current standing.
Broader market tailwinds include Google selecting the company’s fifth-generation EPYC processors for its TPU 8tx system alongside the rollout of EPYC Venice CPUs. Supermicro has also commenced shipments of new servers powered by Advanced Micro Devices technology.
Despite the positive trajectory in server hardware demand, some market observers maintain a cautious stance regarding valuation risks, noting higher inventory levels and shifts in free cash flow compared to previous quarters. Bank of America adjusted its earnings estimates and price target for the stock to reflect these competing pressures.
The broader semiconductor sector has experienced pronounced volatility, with recent sessions marked by a recovery following earlier industry-wide selloffs.
