Following a blockbuster earnings report, this semiconductor stock blasted off to a new all-time high.
May 7, 2026
Wednesday gave us another monster earnings session, and the broader market loved what it saw.
The S&P 500 surged 1.39% to another new all-time high, while the short-term momentum reached its highest reading since July of last year.
This tape is red hot.
Buyers are in control of the tape, earnings season is still delivering plenty of upside surprises, and the strongest stocks are getting rewarded in a big way.
We saw that clearly in the Top Beats sheet.
*Click the image to enlarge it
Healthcare names like Healthpeak Properties $DOC and DaVita $DVA ripped higher with the strongest reaction scores of the day.
International Flavors & Fragrances $IFF rallied more than 17% following a big double beat.
Despite missing expectations across the board, Uber $UBER surged more than 8%, snapping a 6-quarter beatdown streak.
And Disney $DIS rallied 7.5% on the heels of a double beat, breaking a 3-quarter streak of negative earnings reactions.
But the most important reaction of the day came from Advanced Micro Devices $AMD.
Advanced Micro Devices crushed expectations and rallied 18.6% for its best earnings reaction since Q1 2019. The stock also closed at a new all-time high.
As we covered in Sunday's Weekly Beat, AMD was already one of the strongest stocks in the market heading into this report.
The only real issue was earnings sentiment...
Despite the monster trend, AMD had been punished for 5 of its last 6 earnings reports, including a brutal 17.3% drop last quarter.
So the biggest question heading into this print was whether AMD could finally snap the negative earnings reaction trend and confirm the price action?
And holy sh*t, did it ever.
The fundamentals explain why the market was willing to pay up this time.
AMD delivered 38% YoY revenue growth, while non-GAAP EPS rose 43%.
What's more, the Data Center revenue jumped 57% YoY, driven by strong demand for EPYC CPUs and Instinct GPUs.
Data Center is now the center of gravity, and AI is pulling the entire business higher.
The management team's guidance also excited the market...
They now expect the server CPU market to grow at more than 35% annually, reaching over $120 billion by 2030.
What's clear after AMD's report is that the company is becoming a core infrastructure provider for the next phase of AI.
While it's certainly extended in the short-term, we expect AMD to continue leading the market over longer timeframes.
Now, the Bottom Beats sheet told a very different story...
*Click the image to enlarge it
The bad outweighed the good on Wednesday, with 21 negative reactions against 15 positive ones.
And because the S&P 500 had such a strong day, the reaction scores were deeply red virtually across the board.
CDW $CDW beat headline expectations and still collapsed more than 20%.
Cencora $COR missed across the board and fell 17%.
Skyworks $SWKS beat expectations but still fell more than 10%, which is especially notable given that semiconductors are in one of the strongest bull runs we have ever seen.
But the most important negative reaction came from Arista Networks $ANET.
Arista Networks beat headline expectations across the board, yet the stock fell 13.6%, marking its worst earnings reaction since Q2 2023.
Making matters worse, Wednesday's move created a textbook failed breakout or a "bull trap."
Heading into the report, ANET looked great. It was breaking out to new all-time highs and appeared to be in the early stages of a fresh leg higher.
But instead of following through, price reversed hard and fell back below that breakout level. Now the buyers who chased the breakout are underwater, and if they start cutting losses, the selling pressure can accelerate quickly.
The fundamental story is strong, but not good enough for the market.
Arista Networks reported a 35.1% YoY increase in revenues, and the management team raised its 2026 revenue forecast.
That sounds great, but expectations were clearly too high. Now we believe the stage is set for a meaningful reset in expectations.
So long as ANET holds below 160, the path of least resistance is sideways to lower for the foreseeable future.
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Stay safe out there,
-The Beat Team
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