After climbing 4.02% to their latest closing price of $355.26, Advanced Micro Devices (NASDAQ: AMD) stock soared 16.54% in the extended session to its May 6, press time price of $414.
If the blue-chip 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 shares’ latest upsurge is the direct result of a particularly impressive earnings report, covering the first quarter (Q1) 2026, that demonstrated remarkable revenue growth and provided exceptionally strong guidance.
Strong Q1 report sends AMD stock flying
Specifically, the semiconductor giant managed a double beat in Q1, reporting a revenue of $10.25 billion against the expected $9.89 billion. Earnings per share (EPS) were similarly positive at $1.37: substantially higher than the forecasted $1.29.
For comparison, AMD reported a revenue of $7.44 billion in the same quarter of 2025 for a 37.77% growth in the last 12 months.
In part thanks to its agreements with other major technology companies like OpenAI and Meta Platforms (NASDAQ: META) and the artificial intelligence (AI)-driven central processing unit (CPU) renaissance, the semiconductor giant anticipates its revenue in Q2 to amount to $11.2 billion.
Considering that the new target is 6.46% above the forecasted $10.52 billion and would, if reached, constitute a 45.64% growth compared to the same period in 2025, the guidance is likely a key factor that enabled AMD stock to soar past $400 in the extended session.
Can AMD stock remain above $400?
Elsewhere, it is uncertain if Advanced Micro Devices shares will be able to retain their valuation above $400 in the short and mid-term.
Indeed, though Wall Street analysts have been, in general, optimistic about the company itself, they have been flagging valuation concerns for months.
The blue-chip chipmaker’s trailing price-to-earnings (P/E) ratio stands at 130.86, and forward P/E is at 50.76. Nvidia (NASDAQ: NVDA) – an equity repeatedly described as cheap despite the firm’s $4.77 trillion market capitalization – shows readings of 40.51 and 24.45, respectively, for the two metrics.
Still, it is notable that despite multiple analysts flagging AMD stock as expensive throughout 2026, the equity is up 58.97% between January 2 – the first regular session of the year – and the closing bell on May 5.
Such performance indicates that the semiconductor giant boasts both strong momentum and investor confidence, though the resulting instability raises the risks of a potential sentiment shift.
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