AMD and Lam Research power chip equipment surge on AI demand cycle, SOXX +6.1%

Advanced Micro Devices' post-earnings momentum swept the semiconductor sector to its strongest single-session gain in 2026, with the SOXX semiconductor ETF jumping 6.1% to an all-time high as AI-infrastructure spending accelerated across the supply chain. The S&P 500 added 0.6% to close at a record 7,519, the Nasdaq Composite rose 1.2% to 26,656, both fresh records, as Treasury yields retreated on reports of advancing U.S.-Iran ceasefire talks.

Today's biggest movers

AMD surges 7.8% as data center momentum carries through earnings season

Advanced Micro Devices Inc. (NASDAQ: AMD) closed at $503.89, up 7.8%, on volume of 37 million shares, extending the rally that began after the company's May 5 first-quarter results. AMD reported Q1 2026 revenue of $10.25 billion, a 37.9% year-over-year increase, with data center revenue of $5.78 billion rising 57%; both figures exceeded analyst consensus. Adjusted earnings per share of $1.37 beat the $1.28 Street estimate by 7%.

Bernstein analyst David Raso upgraded AMD to Outperform on May 6 and lifted his price target to $525 from $265, citing AMD's MI300X GPU roadmap as the primary credible alternative to NVIDIA Corp. (NASDAQ: NVDA) in AI training clusters. Citigroup maintains the most cautious view at a $248 target, but the 34-analyst Buy consensus is the broadest it has been in three years. AMD shares are up 125% year-to-date; as covered in our May 22 recap, the stock entered the post-Memorial Day session already carrying significant institutional momentum from the earnings beat.

Lam Research and Applied Materials ride the AI equipment cycle

Lam Research Corp. (NASDAQ: LRCX) and Applied Materials Inc. (NASDAQ: AMAT) gained 5.7% and 5.3%, respectively, as investors positioned in semiconductor equipment on the expectation that hyperscaler AI capital expenditure will sustain multi-year equipment upgrade cycles. Morgan Stanley upgraded Lam Research to Overweight on May 18, citing record revenue in the March 2026 quarter and expanding margins in memory. B. Riley raised its Lam price target to $385 from $350 and kept a Buy rating.

Applied Materials raised its Q3 2026 revenue outlook and lifted its full-year semiconductor equipment growth forecast following a Q2 earnings beat. Among 39 analysts tracked by S&P Global, AMAT carries a Buy consensus with an average price target of $509.63, implying roughly 12% upside from Tuesday's close. Both names are squarely in the AI infrastructure spending channel: LRCX supplies deposition and etch tools for advanced memory nodes that training clusters require; AMAT provides process equipment for logic and packaging layers.

Arm Holdings extends its AGI CPU rally, up 4.8%

Arm Holdings plc (NASDAQ: ARM) closed at $321.22, up 4.8%, continuing a momentum run that saw the stock surpass a $300 billion market-cap threshold last Tuesday. ARM is up 180% year-to-date; the near-term catalyst is its new AGI CPU platform, which has drawn early licensing interest from major cloud providers. Bernstein analyst David Dai rates the stock Outperform with a $300 price target, calling Arm a "prime beneficiary of the growth of agentic AI." As covered in our May 21 recap, Arm's role as the IP backbone of every mobile and emerging server CPU architecture keeps institutional demand elevated across earnings cycles.

MongoDB drops 5.8% ahead of Thursday earnings

MongoDB Inc. (NASDAQ: MDB) was the session's largest decliner among AI-universe names, falling 5.8% to $307.35 ahead of its first-quarter fiscal 2027 earnings, due after the closing bell on Thursday, May 28. The company guided revenue of $659 million to $664 million for the quarter, with non-GAAP operating income of $105 million to $109 million. Bank of America raised its price target to $375, maintaining a Buy rating; Goldman Sachs and BMO Capital both moved to $360, citing growth in MongoDB's Atlas cloud platform and the company's capacity to capture AI workload migration. Tuesday's retreat mirrors the stock's behavior ahead of its last two reports, when it sold off 4%-8% in the session before results and then reversed sharply on the print.

Notable but quieter

Super Micro Computer Inc. (NASDAQ: SMCI) gained 4.3% to $37.10 on 42 million shares, above its average daily volume, as AI-server demand continued to offset concerns about export compliance. Dell Technologies Inc. (NYSE: DELL) added 3.4% to $305.08, holding gains from Dell Technologies World 2026 as the market positions ahead of May 28 pre-market earnings; analysts expect EPS of $3.00, up roughly 94% year-over-year, on revenue near $35 billion, anchored by a $43 billion AI server backlog. Intel Corp. (NASDAQ: INTC) rose 3.1% and is up 213% year-to-date; the primary driver remains a reported preliminary chip-manufacturing agreement with Apple, the third foundry-related lift for INTC shares this year, complementing Q1 revenue of $13.6 billion that beat consensus by 9%. ServiceNow Inc. (NYSE: NOW) eased 2.2% on profit-taking after a strong prior week, and Palo Alto Networks Inc. (NASDAQ: PANW) slipped 1.5%, consolidating below its May highs despite a 43% year-to-date gain.

What to watch tomorrow

The market's focus on Wednesday will be pre-positioning for a crowded Thursday earnings schedule. Dell Technologies reports Q1 fiscal 2027 results before the market opens on May 28; the Street consensus calls for revenue of $35.1 billion and EPS of $3.00, representing roughly 50% and 94% year-over-year growth, underwritten by its $43 billion AI server backlog and $50 billion AI revenue target for fiscal 2027. MongoDB reports after the closing bell the same day, with analyst attention on Atlas growth rate and the breadth of AI workload commitments. Salesforce Inc. (NYSE: CRM) also reports May 28 after close; Agentforce adoption data will be closely watched across the AI software segment. Any Federal Reserve communication or development in U.S.-Iran negotiations will set the tone for Treasury yields and rate-sensitive software multiples heading into the back half of the week.

Not investment advice.