After rising 4.02% to the last closing price of $355.26, Advanced micro devices (Nasdaq: AMD) stock It rose 16.54% in the session through May 6, at a press time price of $414.
if Blue chip If the chipmaker maintains its current trajectory, it will meet the morning bell having added a staggering $96 billion to its market capitalization in less than a day.
AMD stock’s recent rally is a direct result of a particularly impressive rally Earnings reportcovering the first quarter (Q1) of 2026, showed notable revenue growth and provided exceptionally strong guidance.
Strong first quarter report sends AMD shares higher
Specifically, the semiconductor giant managed a double-digit win in the first quarter, posting revenue of $10.25 billion versus the expected $9.89 billion. Earnings per share (EPS) were similarly positive at $1.37: well above the expected $1.29.
For comparison, AMD reported revenue of $7.44 billion in the same quarter of 2025 with growth of 37.77% in the past 12 months.
This is thanks in part to its agreements with other major technology companies such as OpenAI and Meta platforms (Nasdaq: dead) and artificial intelligence (Amnesty International) – Driven by the central processing unit (CPU) renaissance, the semiconductor giant expects its second-quarter revenue to reach $11.2 billion.
Given that the new target is 6.46% higher than the expected $10.52 billion and, if achieved, would represent 45.64% growth over the same period in 2025, the guidance was likely a key factor that enabled AMD stock to rise above $400 in the extended session.
Can AMD stock stay above $400?
Elsewhere, it is uncertain whether Advanced Micro Devices shares will be able to maintain its valuation above $400 in the short to medium term.
In fact, although Wall Street analysts were, in general, Optimistic about the company In and of themselves, they have been citing concerns about the assessment for months.
Trailing blue chip maker Price to earnings ratio (P/E). It stands at 130.86, and the forward P/E is at 50.76. Nvidia (Nasdaq: NVDA) — stocks that have repeatedly been described as cheap despite the company’s $4.77 trillion market cap — show readings of 40.51 and 24.45, respectively, for the two metrics.
However, it’s worth noting that although many analysts point to AMD stock being expensive throughout 2026, shares were up 58.97% between January 2 – the first regular session of the year – and the closing bell on May 5.
This performance suggests that the semiconductor giant has strong momentum and investor confidence, although the resulting instability raises the risk of a potential shift in sentiment.
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