AMD Stock Jumps 7% as CoreWeave Earnings Reignite the AI Chip Rally
AMD Stock Jumps 7% as CoreWeave Earnings Reignite the AI Chip Rally
Advanced Micro Devices shares jumped 7.3% on Wednesday, closing at $552.90, as a strong earnings report from AI cloud provider CoreWeave revived demand for chip stocks and put the artificial intelligence trade back in the spotlight on Wall Street.
AMD gained $37.69 in a single session, its third straight daily advance, extending a rally that has lifted the stock nearly 37% since November 6. The move made AMD the most searched stock in the United States on Wednesday, and it led a broad rebound in semiconductors after two days of heavy selling.
CoreWeave’s Blowout Quarter
The spark came late Tuesday, when CoreWeave reported third-quarter results that beat expectations on nearly every measure. Revenue reached $3.66 billion, up 168% from a year earlier, and the company lost $1.27 per share, less than investors had feared.
CoreWeave also raised its full-year 2026 revenue guidance to between $13.0 billion and $13.3 billion, above the roughly $12.9 billion analysts had expected, and said it expects its annualized revenue run rate to reach $20 billion to $21 billion by the end of the year. Its order backlog climbed to $132.5 billion, up from about $104 billion in June.
The company, which rents out computing power built on advanced chips, said it planned to spend $37 billion to $39 billion on capital investment, more than expected. It is also preparing to raise billions of dollars in loans backed by its graphics processors and other computing equipment, according to a Financial Times report, with financing rates expected at 7% to 7.5%.
CoreWeave shares soared 24.7% to $60.77 on Wednesday, the biggest gain in the market. The results mattered far beyond one company: CoreWeave’s spending plans are a direct signal of how much demand remains for the chips that power AI data centers.
Why AMD Led the Rally
AMD was the biggest beneficiary of the renewed confidence. The chipmaker supplies both the central processors and the graphics processors used in AI data centers, and investors treated CoreWeave’s raised outlook as evidence that demand for its hardware will keep growing.
Several other factors added to the momentum. UBS reported on Wednesday that server CPU shipments jumped 31% year over year in the third quarter. Oppenheimer raised its rating on AMD to outperform with a $600 price target, and Goldman Sachs named AMD one of three attractive semiconductor stocks amid the recent sell-off. Google Cloud also recently began running its TPU 8tx systems on AMD EPYC processors, a win for AMD in the data-center market.
On CNBC’s Closing Bell on Tuesday, Bernstein analyst Stacy Rasgon summed up AMD’s own outlook: the company is effectively guiding for its server revenue to double next year and its GPU revenue to almost triple. Analysts now expect AMD’s revenue to nearly double in 2027, to about $95.9 billion.
AMD’s own third-quarter results, reported earlier, set the stage. Revenue rose 45% year over year to a record $13.4 billion, and the company guided fourth-quarter revenue to about $17 billion, predicting further growth in its server and data-center business.
A Broad Chip Rebound
The rally spread across the semiconductor sector. Nvidia rebounded 2.9% to $173.73 after two days of steep losses, Micron jumped 11.9%, Intel gained 7.5% and Broadcom rose 4.0%. The Nasdaq Composite climbed 1.60% and the S&P 500 rose 1.31%, while the Dow Jones Industrial Average slipped 0.49%.
Money rotated out of some of the market’s biggest names and into chip stocks. Microsoft fell 2.3% to $521.12. The U.S. bond market was closed for Veterans Day, leaving stocks as the day’s main focus.
The rebound came after a bruising stretch for AI-related shares. Nvidia lost more than $400 billion in two days earlier in the week as investors questioned whether spending on AI infrastructure would pay off, and October consumer prices rose 0.4%, hotter than expected, raising the odds of a Federal Reserve rate increase in December. That backdrop made Wednesday’s rally a test of whether the AI trade still had buyers. For one day at least, it did.
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Why This Matters
AMD’s surge matters because it is a real-time vote on the AI infrastructure boom. The company’s chips sit at the center of the data-center buildout, and CoreWeave’s $132.5 billion backlog is effectively a pipeline of future chip orders. When a cloud provider raises its spending plans by billions of dollars, suppliers such as AMD are the first to benefit.
The move also shows how quickly sentiment can turn in this market. AMD is up nearly 37% in less than a week, after falling sharply the week before. That kind of volatility reflects a genuine debate among investors: whether AI spending is a durable investment cycle or an overbuilt bubble. Wednesday’s trading suggests that, for now, strong earnings are enough to settle the argument in favor of the bulls.
For ordinary investors, the lesson is narrower. AMD’s gains were driven by verifiable business results — record revenue, a raised outlook and a growing backlog — rather than by speculation alone. The next test comes on November 17, when Nvidia reports third-quarter results, and in early February, when AMD reports its fourth quarter.
Latest Developments
AMD’s rally capped a day in which chip stocks led the market higher across the board. The company’s shares have now risen for three consecutive sessions, and its forward price-to-earnings ratio stands at about 34 times expected earnings, near its average.
Bitcoin, which had been sliding for days, bounced back above $74,000, rising about 1.1% to $74,549, but it lagged the stock rebound as U.S. spot bitcoin ETFs recorded a fourth straight day of outflows. Bitcoin fell below $73,000 on Tuesday for the first time since August, and its 200-day moving average near $73,200 remains a key level for traders. Gold slipped below $4,000 an ounce, while West Texas Intermediate crude steadied near $86.37 a barrel.
Investors will now watch whether the chip rally holds. The market’s attention turns to Nvidia’s earnings on November 17, which will be the next major test of demand for AI hardware, and to Friday’s producer price data for another read on inflation.
Frequently Asked Questions
Why did AMD stock jump today?
AMD shares rose 7.3% to $552.90 after CoreWeave, a major AI cloud provider, reported third-quarter revenue of $3.66 billion, up 168% year over year, and raised its full-year guidance. The results eased worries about AI chip demand and lifted the whole semiconductor sector. A UBS report on strong server CPU shipments and an Oppenheimer upgrade also helped.
How much has AMD stock risen this month?
AMD has gained about 37% since November 6, including three straight daily advances. The stock closed at $552.90 on Wednesday, November 11, up $37.69 on the day.
What did CoreWeave report?
CoreWeave reported third-quarter revenue of $3.66 billion, up 168% year over year, a narrower-than-expected loss of $1.27 per share, and a backlog of $132.5 billion. It raised its 2026 revenue guidance to $13.0 billion to $13.3 billion and plans $37 billion to $39 billion in capital spending. Its shares jumped 24.7% to $60.77.
Is the AI chip rally back?
For one day, yes. Chip stocks including AMD, Nvidia, Micron, Intel and Broadcom all rose sharply after CoreWeave’s results. But the sector remains volatile after a steep sell-off, and Nvidia’s earnings on November 17 will be the next big test of whether demand for AI hardware is holding up.
The Bottom Line
AMD’s 7.3% jump on Wednesday was the market’s answer to a week of doubt about the AI trade. CoreWeave’s blowout quarter, a $132.5 billion backlog and billions in planned spending gave investors a concrete reason to buy chip stocks again, and AMD, with record revenue and a raised outlook of its own, was the natural leader. Whether the rally lasts will depend on Nvidia’s earnings next week and on whether the AI infrastructure boom keeps producing the numbers to justify it.
Sources: Motley Fool; TIKR; TradingKey; CoinDesk; Finnhub market data.
[…] reacted swiftly. Nvidia shares had closed the regular session up 2.87 percent at $173.73, helped by CoreWeave’s earnings beat, which eased fears about artificial intelligence spending. After the reports emerged, the […]