Investment Strategist
AMD’s results show artificial intelligence demand is spreading beyond Nvidia.
Intel and Micron are rising for different reasons, but the same AI supply chain sits underneath.
Investors should watch real orders, margins and bottlenecks, not only valuation headlines.
Artificial intelligence (AI) is no longer just a story about clever chatbots answering emails with suspicious confidence. It is becoming a story about factories, memory chips, servers, power, data centres and supply chains. In other words, the digital revolution has developed a very physical appetite.
On 5 May 2026, Advanced Micro Devices (AMD), the chip company best known as Nvidia’s main challenger in AI processors, reported first-quarter revenue of 10.3 billion USD, up 38% from a year earlier. Its data centre revenue rose 57% to 5.8 billion USD, and the company guided second-quarter revenue to about 11.2 billion USD, above market expectations, as compiled by Bloomberg.
AMD closed at 355.26 USD on 5 May 2026, up 4%, before rising more than 16% after hours. The market reaction was simple: investors saw another sign that AI spending is broadening.
This matters because one of the biggest questions in markets is whether AI remains a one-stock, one-supplier story, or becomes a full industry cycle. AMD, Intel and Micron now suggest the answer may be closer to the second option.
Nvidia remains the clear leader in graphics processing units, the specialised chips used to train and run AI systems. Its shares have eased slightly from recent highs, but the bigger point is that investors are now searching for the rest of the AI supply chain.
AMD is important because it gives large cloud customers an alternative. That does not mean it replaces Nvidia. It means the market may be big enough for more than one serious supplier. When demand is enormous, customers rarely enjoy depending on one vendor. Even in chips, nobody likes a single point of failure. It makes procurement teams sweat through expensive shirts.
AMD also benefits from central processing units (CPUs), the general-purpose chips that sit at the heart of servers. As AI moves from model training to daily use, known as inference, companies need more balanced systems. The AI brain needs accelerators, but it also needs memory, networking and ordinary server processors to keep the machine running.
That is why AMD’s numbers landed well. The story is not only that AI chips are selling. It is that AI systems are becoming larger, more complex and more distributed across the data centre.
Intel is a different case from AMD. AMD is gaining from clear demand in AI servers. Intel is more of a turnaround story, and a complicated one. It has struggled for years with execution, manufacturing delays and lost market share. But recent reports that Apple is exploring chip manufacturing talks with Intel show why investors are giving the company another look.
The key word is manufacturing. Intel wants to become a larger foundry, meaning a company that makes chips designed by others. That matters because chip supply is becoming strategic. Large technology companies and governments do not want the world’s most important chips to depend on too few factories in too few places. If more companies want secure, local and diversified chip production, Intel could regain relevance. Could is doing a lot of work in that sentence. The market is watching optionality, not proof.
Micron tells the same story from another angle. Micron makes memory chips, which store and move data inside devices and servers. Memory has traditionally been a boom-bust business. When supply is tight, prices rise. When too many chips are produced, prices fall quickly. It is not a business for the faint-hearted, or for anyone who likes straight lines.
AI may not remove that cycle, but it could make demand more durable. Advanced AI servers need large amounts of high-performance memory because models must move and process huge volumes of data. The more AI shifts from experiments to real workloads, the more memory becomes a toll booth on the road.
This is the common thread. AMD sells more compute. Intel may regain relevance in manufacturing. Micron benefits from memory scarcity. Nvidia remains the giant everyone measures against. The AI story is spreading from the front page to the warehouse.
The same pattern appears in private markets. Anthropic, the company behind Claude, is reportedly weighing a funding round that could value it at more than 900 billion USD. OpenAI said on 31 March 2026 that it had raised 122 billion USD at a post-money valuation of 852 billion USD.
Those numbers are large enough to make a calculator pause for personal reflection. But the useful point is not the exact valuation. It is the direction of travel. AI firms need vast amounts of computing power, and investors are trying to own the companies that may turn that compute into revenue.
Anthropic also launched 10 AI agents for financial services on 5 May 2026. These tools aim to help with tasks such as pitchbooks, statement reviews and compliance checks. That matters because AI demand is shifting from experiments to daily workflows. If customers use AI to do real work, infrastructure demand becomes less theoretical.
The main risk is that expectations run faster than revenue. AI infrastructure spending is huge, but not every dollar spent on chips will become a dollar of profit for the buyer. Investors should watch whether large cloud companies keep spending, or start slowing orders after heavy build-outs.
A second risk is supply pressure. Memory shortages help Micron today, but they can hurt personal computer demand and raise costs for others. Bottlenecks are good for the seller, until they become bad for the system.
A third risk is valuation. When companies rise quickly, the market often starts pricing tomorrow’s success as if it arrived yesterday. Early warning signs include weaker guidance, falling margins, customer delays, rising inventories and softer language around AI orders.
Follow the supply chain, not only the most famous stock.
Separate confirmed orders from exciting product roadmaps.
Watch margins, because revenue without profit is only expensive exercise.
Keep position sizes linked to uncertainty, especially after sharp rallies.
AMD’s earnings matter because they turn the AI story from a narrow winner-takes-most trade into a broader industrial question. The next phase is about who supplies the chips, memory, servers, factories and software that make AI useful at scale. Nvidia still leads. AMD is gaining credibility. Intel is trying to re-enter the conversation. Micron shows that memory may be one of the least glamorous, most important parts of the stack. For long-term investors, the lesson is balanced: AI may be a durable growth theme, but durable does not mean smooth. Even the smartest machine still needs parts, power and patience.
This material is marketing content and should not be regarded as investment advice. Trading financial instruments carries risks and historic performance is not a guarantee of future results.
The instrument(s) referenced in this content may be issued by a partner, from whom Saxo receives promotional fees, payment or retrocessions. While Saxo may receive compensation from these partnerships, all content is created with the aim of providing clients with valuable information and options.
Outrageous Predictions
Head of Investment Content Switzerland
Outrageous Predictions
Senior Relationship Manager
Outrageous Predictions
Chief Investment Strategist
Outrageous Predictions
Saxo Group
Outrageous Predictions
Chief Investment Strategist
Outrageous Predictions
Global Head of Investment Strategy
Outrageous Predictions
Investor Content Strategist
Outrageous Predictions
Global Head of Macro Strategy
Outrageous Predictions
Global Head of Macro Strategy
Outrageous Predictions
Global Head of Macro Strategy