Shares of Advanced Micro Devices jumped 7.3 percent on Wednesday, closing at $552.90, as a strong earnings report from AI cloud provider CoreWeave, a Google Cloud hardware announcement and an analyst upgrade combined to lift the chipmaker and the wider semiconductor sector.
AMD gained $37.69 on the Nasdaq, with trading volume of about 42.5 million shares, roughly 83 percent above its three-month average. Wall Street rebounded across the board on Wednesday, with the S&P 500 up 1.31 percent and the Nasdaq Composite up 1.60 percent.
CoreWeave, which rents out AI computing capacity, reported a smaller-than-feared quarterly loss of $1.27 per share and revenue of $3.66 billion on Tuesday night, then raised its full-year 2026 revenue guidance to a range of $13.0 billion to $13.3 billion. The company also said it would spend $37 billion to $39 billion on capital investment this year, money that flows in large part to chip suppliers such as AMD.
AMD also benefited from a UBS report published Wednesday showing that server CPU shipments jumped 31 percent year over year in the third quarter. AMD is holding steady at about 28.4 percent of the server CPU market, according to UBS analyst Timothy Arcuri, while Intel's share fell by 2.4 percentage points. Arcuri also believes CPU prices are rising, which would mean more profit for AMD.
Separately, AMD said its fifth-generation EPYC server CPUs are powering the host foundation for Google Cloud's new TPU 8tx systems, and Oppenheimer upgraded the stock to Outperform with a $600 price target. UBS predicts CPU sales could reach $210 billion by 2030, which would mean nearly $60 billion in CPU sales alone for AMD if it holds its market share.
The rally builds on a record third quarter for AMD, when revenue rose 45 percent from a year earlier to $13.4 billion and data center revenue jumped 97 percent to $8.5 billion. The company has guided fourth-quarter revenue to about $17 billion. Intel shares also rose 7.5 percent on Wednesday, and CoreWeave surged nearly 25 percent.
