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Fundamentals analysis of two highly traded stocks 07/05/26

In related news, Advanced Micro Devices (AMD) on May 5 served up Q1 revenue of $10.253billion (+38% yoy) from Q1 2025 value of $7,438 and diluted EPS of $0.84 exceeding consensus. On a non-GAAP basis the figures were for a $1.37 diluted EPS.

Growth was powered by demand for high-performance chips and AI workloads. Additionally, AMD revealed more partnerships in data center and AI markets, a segment which expanded 57%, “driven by strong demand for AMD EPYC™ processors and the continued ramp of AMD Instinct™ GPU shipments.” 

A Graphics Processing Unit (GPU) is able to utilise parallel architecture utilising hundreds of micro-cores to process tasks at high speed, unlike a CPU which performs sequential processing and is unsuitable for application to LLMs, gaming, and data analytics.

Gaming business revenue was up 11% yoy, to $720million, “driven by solid demand for AMD Radeon™ GPUs partially offset by lower semi-custom revenue,” AMD reported in a press release.

The company’s embedded sim device division saw marginal growth from end users of 6% yoy, to $873 million.

Its GAAP operating expenses were $3,940million, although non-GAAP operating expenses were $3,145 million after deducting for amortisation of acquisition-related intangibles ($290million); stock-based compensation ($479million), and acquisition-related and other costs ($26million). These value-add activities contributed to a non-GAAP profit margin of $5,685million (53% GAAP margin, with a net figure of $5,416million.) Amortisation of $261million was also classed as income earned on IP and goodwill.

Amazon (AMZN.US) reported on April 29 2026 that Operating income increased to $23.9 billion in the first quarter, compared with $18.4 billion in first quarter 2025.

Amazon’s chips business—inclusive of Graviton, Trainium, and Nitro— is growing triple-digit percentages year-over-year and it struck a new deal with OpenAI to use 2GW of Trainium capacity in frontloading edge processing, with Anthropic brokering its own deal for 5GW of developing Trainium chip technologies.

A recent partnership with Cerebras aims to deploy via Amazon Bedrock what it claims are “the fastest AI inference speeds available for large language models;” as well as deploying Graviton4 chips in a co-venture with Uber, “matching riders with drivers in fractions of a second at lower cost.”

Finally long-term client Meta which already utilises Amazon Bedrock for customer data warehousing, has agreed to bankroll the extension of tens of millions of AWS Graviton cores to propel CPU workloads underlying its agentic AI developments, comprising real-time reasoning, code generation, and multi-stage agent workflows.

Net income increased to $30.3 billion in the first quarter, or $2.78 per diluted share, compared with $17.1 billion, or $1.59 per diluted share, in first quarter 2025.

Compared to last month, the stock has climbed 27.59% to $272.49 mark-to-market value with an analyst price target of $310.16

However, markets were weaker than expected with the stock today falling 0.82% correct at 18:07GMT, as investors question if the ticket price is worth the hype.