Intel shares surged about 27% after the chipmaker blew past first-quarter expectations, underscoring a bullish tilt in the AI and semiconductors complex. The company reported adjusted earnings of 29 cents per share on revenue of $13.58 billion, beating consensus estimates of 1 cent per share on $12.42 billion in revenue, based on data compiled by LSEG. Intel also issued a second-quarter outlook that topped analysts’ forecasts, providing a further positive impulse for the group and setting a tone of improved visibility for AI-related CPU demand.
In the same premarket session, Procter & Gamble advanced more than 3% after fiscal third-quarter results beat expectations, with adjusted earnings of $1.59 per share on revenue of $21.24 billion, surpassing Street estimates of $1.56 and $20.5 billion. The gain from P&G helped keep consumer staples in focus even as other corners of the market wrestled with broader macro noise.
Advanced Micro Devices climbed roughly 12% as investors reset bets on AI-enabled chip cycles following Intel’s results. DA Davidson subsequently upgraded the stock, arguing that Intel’s strength could foreshadow a broader ramp in CPU business across the sector. The note framed Intel’s quarterly performance as a potential pre-cursor to a larger AI‑driven cycle for CPU suppliers, supporting the case for upside in AMD and peers.
Not all high-profile names participated in the rally. Boyd Gaming dropped about 6% after reporting first-quarter adjusted earnings of $1.60 per share, below the $1.73 consensus from LSEG, with revenue of $997.4 million also missing a $1 billion expectation. The weakness reflected softer revenue at its Las Vegas operations, illustrating how sector-specific dynamics can diverge within the broader market rally.
In software, SAP jumped nearly 7% after reporting $1.72 in earnings per ADR (adjusted) for its latest quarter, ahead of the $1.69 expected by analysts. Cloud revenue rose 19%, and the company reiterated a 2026 outlook that contemplates a geostrategic path to profitability as it assumes Middle East conflict de-escalation.
Among financials, Sallie Mae (SLM) advanced about 1% after posting first-quarter earnings of $1.54 per share, up from $1.40 a year earlier. The student-loan specialist also lifted its full-year earnings guidance to a range of $3.10 to $3.20 per share, above FactSet’s consensus estimate of $2.78 for the year, highlighting how improving loan metrics can bolster profitability.
MaxLinear leaped about 38% after beat-and-raise results, signaling strength in the chip-equipment and design space. The company earned 22 cents per share, excluding items, on revenue of $137.2 million, ahead of expectations of 18 cents on $134.6 million, according to FactSet. The outperformance points to continued demand in certain AI and connectivity components, even as the broader market remains selective about hardware names.
Within industrials, Comfort Systems USA rose about 7% after posting stronger-than-expected first-quarter results and announcing a dividend increase. The HVAC systems provider earned $10.51 per share on revenue of $2.87 billion, well above expectations of $6.81 per share on $2.39 billion in revenue, underscoring resilient demand in its markets.
Insurance group Hartford Financial Services slipped nearly 5% after reporting first-quarter adjusted earnings of $3.09 per share, missing the consensus estimate of $3.39, with revenue of $7.23 billion also below the $7.35 billion expected. The miss reflected narrower margins and underwriting pressures, weighing on the name and providing a reminder of idiosyncratic risk within financials.
ServiceNow rose roughly 2% after a session of volatility that saw the stock plunge nearly 18% in the prior session after quarterly results suggested subscription revenue softness tied to external geopolitical dynamics, even as the company posted an earnings and revenue beat. The stock’s rebound highlights the market’s sensitivity to relief in earnings quality versus growth mix in software subscriptions.
Semiconductor stocks traded broadly higher, building on Intel’s results. Arm Holdings advanced more than 7.5%, while Marvell Technology rose about 4% and Qualcomm gained around 2%. The iShares Semiconductor ETF climbed roughly 4%, tracking its 18th straight green session on pace before the market closed the day. In memory, Lam Research and Western Digital each rose about 3%, with Micron Technology, SanDisk, and Seagate Technology up about 2.5% apiece, underscoring a broad cycle of support for device makers tied to AI deployment and data-center demand.
According to CNBC, the premarket drift reflected a mix of earnings-driven repricing and sector-wide optimism around AI-related equipment and software plays. The moves come amid a continuing recalibration of earnings expectations across tech and industrials as investors weigh macro uncertainty against the durability of cloud adoption and AI-driven capex plans.
Key takeaways
- Intel surge (~27%) after Q1 beat and stronger-than-expected Q2 outlook; catalyst: solid earnings, robust guidance; implication: reaffirms AI hardware demand cycle and sets a constructive tone for peers.
- Upgrade cycle for semis with AMD up ~12% on a DA Davidson upgrade tied to Intel’s results; catalyst: upgrade note; implication: potential upside for CPU suppliers amid AI rush.
- MaxLinear’s big jump (~38%) on better-than-expected results and raised guidance; catalyst: outperformance; implication: signals demand resilience in niche chip segments.
- SAP’s beat and cloud momentum (~7% higher) supported by cloud revenue growth; catalyst: better quarterly results; implication: shares may benefit from AI-enabled business software demand, though outlook hinges on macro factors.
- ServiceNow rebound after prior rout; catalyst: earnings beat despite subscription headwinds; implication: shows risk-on sentiment can re-emerge even after sharp declines.
What drove the move
The day’s activity underscored a risk-on tilt around technology hardware and software names that benefit from AI-driven demand. Intel’s better-than-expected earnings, combined with a robust Q2 forecast, provided a clear anchor for the semiconductors complex. The upgrade to AMD from DA Davidson reinforced the narrative that the AI cycle could broaden beyond a single leader, lifting hopes for continued CPU‑driven upside across the sector. In software, SAP’s outperformance and cloud growth suggested enterprise demand remains resilient, even as geopolitical headwinds influence the cloud roadmap for many firms.
Market reaction
The broad rally in the chip group helped lift related exchange-traded funds and memory names, with the iShares Semiconductor ETF reporting a solid advance. Within components, Arm, Marvell, and Qualcomm saw gains, while memory equipment stocks like Lam Research and Western Digital held gains near the 3% mark. The mixed backdrop outside tech—where insurers and some consumer staples names faced earnings-driven moves—illustrates the idiosyncratic risk present across sectors even as AI exposure drives the pace of gains in the tech complex.
What analysts are saying
DA Davidson’s note on AMD said Intel’s surge underscores a potential ramp in CPU demand, a signal that could lift multiple players in the sector as buyers diversify their AI hardware investments. The firm framed Intel’s quarter as a meaningful data point that could precede broader CPU expansion, a view that aligns with investors’ preference for durable, supply-constrained AI components. While some names remain vulnerable to execution or macro shifts, others appear positioned to benefit from ongoing AI deployment across data centers and edge devices.
Bigger picture
The session’s moves sit at the intersection of corporate earnings clarity and macro digestion. Investors are weighing the durability of AI-related spending against inflation dynamics and policy risk. The software and cloud software space is particularly sensitive to enterprise IT budgets and the pace of corporate digital transformation, while the hardware cycle remains tethered to data-center buildouts and GPU/CPU refresh cycles. The upshot for markets is a continued bifurcation: AI-adjacent names with clear earnings visibility may outperform the broader market, even as select companies face idiosyncratic challenges that temper upside.
What to watch next: investors will remain focused on earnings reports and guidance from additional semis and AI-related names, as well as macro data and potential central-bank commentary that could influence the rate trajectory. The coming weeks will also keep a close eye on enterprise IT demand trends, cloud-margin dynamics, and the pace of capital expenditure tied to AI infrastructure.
