AI Chip Stocks Tumble on Profit-Taking; Software Shares Rally
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Morning brief: AMD's Blockbuster Earnings Ignite Rally Across Chip Sector
All eyes are on the semiconductor space this morning, with the entire sector riding high on AMD's blockbuster earnings report. AMD crushed Q1 expectations, driven by a 57% surge in its data center business, and issued a stellar Q2 forecast that blew past analyst predictions. The news sent AMD shares soaring and created a powerful tailwind for chipmakers across the board, lifting TSM, Micron, and the broader SMH ETF in pre-market action. Elsewhere, Uber is also enjoying a post-earnings pop after beating profit estimates, though its revenue came in slightly short. The AI infrastructure and former crypto-miner names on your list, like IREN and APLD, are also seeing green ahead of IREN's own earnings report after the bell today. Overall market sentiment is decidedly risk-on, fueled by tech's strength and cooling oil prices amid hopes for a U.S.-Iran peace deal.
Evening brief: AI Chip Stocks Tumble on Profit-Taking; Software Shares Rally
The market pulled back from record highs today, with a noticeable rotation out of the high-flying semiconductor and AI names that have powered the recent rally. Your portfolio felt this shift as Marvell Technology, AMD, and Broadcom all dropped around 3% or more, likely due to profit-taking after incredible year-to-date runs. The weakness was broad in the sector, with bitcoin miners IREN and APLD also seeing significant selling pressure. Bucking the trend were software and e-commerce companies, with ServiceNow surging over 5% after announcing an ambitious AI-driven product roadmap and long-term revenue targets at its investor day. Shopify also jumped nearly 6% as the market re-evaluated its strong earnings report from earlier in the week, looking past the conservative guidance. Tesla was another bright spot, climbing over 3% on positive April sales data from China. After the bell, Robinhood reported Q1 results that missed estimates, with the stock showing weakness in initial after-hours trading. The choppy, sector-specific action suggests investors are becoming more selective, and all eyes are now on tomorrow's employment report for the next major market catalyst.
The day's moves on the ledger
No slate changes were logged this day.