🪦 AMD eats the bear case, S&P hits new highs

Welcome to the Daily Rip, your quick hit on today’s market moves. Tuesday saw the S&P 500 hit fresh all-time highs, powered by strong tech earnings and chip sector momentum, even as geopolitical tensions simmered near the Strait of Hormuz. Let’s break down what’s driving the market and what to watch next.

Starting with the macro setup, Wall Street shrugged off some uneasy news from the Middle East. S. Navy and Iranian forces exchanged shots near the strategic Strait of Hormuz, a key oil transit route, but the Pentagon maintained that a ceasefire was still in place.

Despite these geopolitical jitters, investors focused on corporate earnings and sector rotation, pushing the S&P 500 to new records. Tech led the charge, while communications stocks lagged. In semiconductor news, Advanced Micro Devices, or AMD, posted strong quarterly results that beat expectations.

25 billion dollars, marking a thirty eight percent year-over-year increase. 2 billion dollars. After-hours, AMD shares jumped over five percent, extending their year-to-date gain to sixty six percent.

The company’s execution is clearly resonating with investors, despite some ongoing concerns about supply constraints. -based manufacturing options with Intel and Samsung. 6 billion dollars.

This move is seen as part of Apple’s broader supply-chain risk management strategy, aiming to reduce dependence on Taiwan Semiconductor Manufacturing Company, or TSMC. TSMC shares slipped nearly two percent on the news, reflecting investor caution about its future customer base. Other chip-related names also gained on the alternative foundry buzz: Applied Digital jumped twelve percent, Micron surged eleven percent, and Qualcomm gained eleven percent.

In big-cap news, Berkshire Hathaway held its annual meeting over the weekend, marking the first under new CEO leadership. The event was smooth and uneventful, which Wall Street took as a positive sign. 35 billion dollars, with insurance underwriting up nearly twenty nine percent.

The company’s cash pile hit a record three hundred ninety seven billion dollars as it sold more equities than it bought for the 14th straight quarter. Share buybacks resumed but remain modest. Berkshire emphasized a cautious approach to deploying cash in today’s market, highlighting core holdings like Apple, American Express, Moody’s, and Coca-Cola.

Now for some quick movers and sector highlights: - Digi Power surged nearly thirty percent on momentum, though without a clear fundamental catalyst. It’s a low-float, high-volatility name, so caution is advised. 27 billion dollars revenue, slightly above guidance.

-driven storage demand. - Akamai rose twelve percent on an analyst upgrade ahead of its May 7 earnings, buoyed by cloud infrastructure growth. On the downside: - PayPal fell eight percent after guiding for a nine percent decline in second-quarter adjusted earnings per share despite beating revenue estimates.

- Fiserv dropped nine percent following a revenue miss and margin compression. - Huntington Ingalls declined ten percent due to margin pressure and negative free cash flow. five percent.

At an 85 times forward price-to-earnings ratio, the market punished the deceleration harshly. S. Marine Corps contract to supply its omni-directional treadmill for infantry training simulations.

Delivery is expected in the fourth quarter, with potential expansion across other military branches. This highlights growing adoption of VR tech in defense alongside gaming. Looking ahead to Wednesday, keep an eye on key economic data releases including the revised April ADP employment change, March trade balance, and the weekly petroleum status report.

Earnings to watch include Disney, Uber, and CVS before the open, with Snap, Beyond Meat, and Novavax reporting after the bell. That wraps up today’s Daily Rip market recap. Thanks for tuning in.

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