Stocks moved higher at midday, led by a rally in semiconductor shares after a wave of upbeat analyst notes. Advanced Micro Devices jumped more than 7% after Bernstein lifted its price target to $265 from $235, citing stronger demand for server CPUs. The move helped AMD extend a 12-session winning streak, and Bernstein’s team also raised its price target on Intel to $60 from $36 in the same note.
In contrast, Abbott Laboratories fell nearly 7% after guiding to weaker second-quarter results. The company projected adjusted earnings of $1.25 to $1.31 per share for the quarter, below the FactSet consensus of $1.36, and trimmed its full-year adjusted earnings outlook to $5.38 to $5.58 per share, missing analysts’ $5.60 estimate.
Aehr Test Systems surged 11% after announcing a $41 million production order from a lead hyperscale AI customer, underscoring demand for semiconductor test solutions in high-throughput AI manufacturing. Several AI-linked optical stocks rose in sympathy, including Lumentum up about 6% and Coherent up roughly 3%.
On Semiconductor climbed about 9% as several Wall Street shops issued bullish notes this week, with Bank of America lifting its price target to $85 from $70 and upgrading to Buy from Neutral.
PepsiCo posted first-quarter results that topped expectations, lifting the stock about 2%. The company earned an adjusted $1.61 per share on revenue of $19.44 billion, ahead of the consensus of $1.55 per share on revenue of $18.94 billion.
Taiwan Semiconductor Manufacturing slid roughly 3% despite beating on both earnings and revenue for the first quarter, tempering some of the semiconductor sector’s gains.
PPG Industries advanced about 5% after saying it would implement global price increases of up to 20% across its portfolio, driven by volatility in petrochemical, energy and transportation markets that have lifted raw-material and packaging costs.
Voyager Technologies rose 4% after NASA selected it for its seventh private astronaut mission to the International Space Station, a mission targeted for no earlier than 2028.
SL Green Realty shares slipped more than 1% after reporting first-quarter funds from operations of 84 cents per share, versus $1.40 in the year-ago quarter. The company said net rental revenue of roughly $166 million exceeded the $144.5 million from the prior-year period.
J.B. Hunt Transport Services jumped about 8% after posting first-quarter earnings of $1.49 per share, above the $1.44 consensus estimate, while revenue of $3.06 billion exceeded expectations of $2.96 billion. Old Dominion followed higher in sympathy, gaining more than 5%.
Charles Schwab fell about 5% after first-quarter revenue of $6.48 billion fell short of the LSEG consensus of $6.50 billion, even as adjusted earnings topped estimates. The company also announced plans to launch direct trading of bitcoin and ether to compete with crypto exchanges.
Flutter Entertainment slipped about 4% after Citi downgraded the stock to Sell from Buy, citing thinner conviction in Flutter’s growth prospects in the U.S.
U.S. Bancorp dropped around 1% after first-quarter earnings beat estimates, but net interest income and net interest margin missed expectations. The bank reaffirmed its full-year revenue growth target of about 4% to 6% year over year.
Key takeaways
- Price move: AMD up >7% amid upgraded targets; Abbott down ~7% on softer guidance; equities broadly bid in midday trades.
- Catalyst: Upgrades and notable orders in semiconductors, mixed Q1 results across consumer staples and financials, and strategic shifts in payments/crypto initiatives.
- Implication: Sector leadership is tilting toward AI-enabled hardware and services, while some traditional staples and banks face guidance or margin pressures that could temper near-term sentiment.
What drove the move
The session’s leadership came from the semiconductor group, anchored by AMD’s more-than-7% advance after Bernstein raised its price target to $265 and highlighted server-CPU strength. The note also boosted Intel’s target to $60, signaling improving sentiment toward major chipmakers as AI workloads increasingly rely on data-center infrastructure. The breadth of AI-related names moving higher, including Aehr Test Systems and hyperscale AI suppliers, underscored investors’ view that AI-driven demand remains a meaningful lever for earnings.
In the immediate aftermath, several high-profile earnings and guidance revisions colored the tape. Abbott’s disappointing quarterly guidance weighed on its stock as investors recalibrated expectations for healthcare and life sciences names facing integration effects from acquisitions. Meanwhile, PepsiCo’s beat on the top line and margins provided a rare example of a consumer staples name contributing to risk-on sentiment amid a volatile rate backdrop.
On Semiconductor’s 9% rally reflected a broader wave of bullish coverage for chipmakers, aided by price-target uplifts and Buy ratings. The stock’s move stood in contrast to broader tech softness and helped prop up other AI-adjacent names like Lumentum and Coherent, which rose in sympathy with the sector’s strength.
Market reaction
The day’s trading showcased a bifurcated market: investors rotated into growth-oriented, AI beneficiaries and high-quality earnings beats, while stocks facing soft guidance or strategic shifts sold off. The performance of J.B. Hunt and Old Dominion highlighted the transport sector’s sensitivity to earnings momentum, as freight-related names traded higher on solid results from industry peers. In contrast, Schwab’s revenue miss and the company’s crypto-trading initiative underscored how additional products and revenue streams can complicate the execution of traditional business models.
Macro considerations remain in focus for investors. While strong earnings in some consumer and tech names buoy sentiment, margins and guidance across sectors continue to be scrutinized as the path for interest rates and inflation shapes multiple investment themes. The semiconductor group, in particular, remains sensitive to demand signals for data-center capacity and AI infrastructure, with investors watching for further upgrades and fresh orders that could extend the current cycle.
Bigger picture
Analysts note that the market’s reaction reflects a blend of near-term earnings momentum and longer-term AI demand trajectories. The week’s moves underscore how price action in semiconductor equities can set the tone for broader risk appetite, particularly when major names execute well and analysts raise targets. At the same time, the market remains wary of divergence between revenue growth and margin expansion in sectors grappling with input costs and shifting consumer behavior.
Investors will be watching upcoming earnings reports and macro data for clues on the durability of AI-driven demand and the resilience of corporate margins. Central-bank commentary and guidance on inflation will also shape the sector’s trajectory, as rate expectations influence the discounting of future profits in high-growth areas like semiconductors and AI hardware.
Looking ahead, market participants will assess whether the current leadership in AI-related equities can sustain momentum into the next earnings cycle and how other cyclicals perform as operating conditions evolve. Traders will be listening for any incremental updates on capital expenditure for data-center growth, AI deployment, and enterprise IT infrastructure, all of which could determine whether this rally broadens or shifts back toward more traditional stock leadership.
What to watch next: upcoming quarterly results from key technology and financial names, fresh guidance from AI hardware suppliers, and any new commentary from central banks that could shift expectations for growth and inflation.
