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ETFs to Buy as AMD Shares Jump 15% Following Q1 Earnings Beat
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Key Takeaways
AMD shares jumped 15% after Q1 earnings and revenues beat estimates and strong Q2 guidance.
AMD Data Center revenues hit a record $5.8B, up 57%, driven by EPYC CPUs and Instinct GPUs demand.
ETFs like SMH and SOXX offer AMD exposure while helping reduce single-stock risk.
Shares of Advanced Micro Devices (AMD - Free Report) jumped 15% on the bourses yesterday, in the extended trading session (as cited in CNBC), following the company’s better-than-expected first-quarter 2026 results. The upward trajectory in its share price was also driven by the chipmaker’s second-quarter revenue forecast, which beat Wall Street’s expectations.
AMD’s server CPU TAM is projected to reach more than $120 billion by 2030, as the company continues to witness a significant increase in demand for CPU compute requirements amid the rapidly accelerating artificial intelligence (AI)-led technology boom.
On the other hand, strong momentum in its Data Center business is fostering deeper, long-term customer engagements, including large-scale, multi-generation deployments. Its expanded strategic partnership with Meta to deploy up to 6 gigawatts of AMD Instinct GPUs across several product generations is a prime example of that.
These strategic developments and aggressive forward-looking projections are expected to provide a sustained tailwind for AMD’s share price. For many investors, this combination of immediate earnings outperformance and long-term AI market-share gains creates a compelling case for adding the stock to their portfolios.
However, direct investment in AMD stock carries company-specific risks, including capacity constraints in advanced packaging and volatile HBM4 memory pricing, both of which could pressure margins. With the stock now trading at a notable premium after the recent rally, initiating a position at current levels may expose investors to a near-term pullback if elevated market expectations are not fully met.
For investors looking to capitalize on AMD’s robust growth trajectory without being fully exposed to the single-stock volatility that often follows such rapid price surges, a more prudent strategy would be to invest in Exchange-Traded Funds (ETFs) with significant exposure to this chipmaker. This approach allows investors to capture the potential upside of AMD’s innovation cycle as well as the gains of other tech leaders while mitigating the risks associated with individual stock ownership in a high-valuation environment.
But before diving straight into these ETFs, let us check AMD’s overall performance in the first quarter in terms of other metrics.
A Brief Analysis of AMD’s Q1 Results
AMD’s first-quarter earnings beat the Zacks Consensus Estimate by 5.4%, while revenues topped the mark by 4.1%. On a year-over-year basis, the company registered double-digit growth on both counts.
The revenue increase was primarily driven by strong growth in the Data Center and Client and Gaming segments, along with the Embedded segment’s return to growth.
In particular, AMD’s CEO has identified the company’s Data Center business as AMD’s primary growth driver. The business delivered record revenues worth $5.8 billion, which surged 57% year over year, driven by strong demand for EPYC processors and the continued ramp up of Instinct GPUs.
AMD is making significant strides in its software business with ROCm, enhancing its performance and scalability. AMD is also witnessing strong customer demand for its Helios platform, underpinned by leadership in memory bandwidth and scale-out capacity.
In terms of new products, the company is currently sampling its MI450 series GPUs, with production on track for the second half of 2026. It also introduced the Ryzen AI 400 series and the Ryzen AI Pro 400 series desktop CPUs in the first quarter, expanding its AI PC offerings across both consumer and commercial systems.
AMD expects client revenues to grow year over year and outperform the market, driven by the strength of its Ryzen portfolio and expanding commercial adoption. The company expects PC shipments to decline in the second half of 2026, primarily due to elevated memory and component costs.
AMD also expects to deliver tens of billions in annual Data Center AI revenues by 2027, surpassing its long-term growth target of over 80%.
For the June quarter of 2026, AMD forecasts revenues in the range of $10.9-$11.5 billion, implying approximately 46% year-over-year growth at the midpoint. The Zacks consensus estimate of $10.43 billion remains below this range.
This fund, with net assets worth $31.45 billion, offers exposure to 30 U.S. companies that design, manufacture, and distribute semiconductors. Of these, AMD carries the third spot, holding 7.73% of the fund. Micron Technology (MU - Free Report) holds the first spot in this fund, holding 8.49% weightage.
SOXX has surged 60.3% year to date. This fund charges 34 basis points (bps) as fees. It traded at a volume of 7.11 million shares in the last trading session. This fund sports a Zacks ETF Rank #1 (Strong Buy).
This fund, with a market value worth $899 million, offers exposure to 101 companies that manufacture technologies or products that contribute to future software development through direct revenues. Of these, AMD carries the sixth spot, holding 6% of the fund. SK Hynix holds the first spot in this fund, with 9.69% weightage.
IGPT has rallied 40.5% year to date. This fund charges 56 bps as fees. It traded at a volume of 0.26 million shares in the last trading session. This fund holds a Zacks ETF Rank #1.
This fund, with a market value worth $2.02 billion, offers exposure to 31 semiconductor companies. Of these, AMD carries the second spot, with 5.97% of the fund. MaxLinear holds the first spot in this fund, with 8.73% weightage.
PSI has soared 77.1% year to date. This fund charges 56 bps as fees. It traded at a volume of 0.34 million shares in the last trading session. This fund sports a Zacks ETF Rank #1.
This fund, with total assets worth $60.65 billion, offers exposure to 26 companies involved in semiconductor production and equipment. Of these, AMD carries the fifth spot, with 5.95% of the fund. NVIDIA (NVDA - Free Report) holds the first spot in this fund, with 16.91% weightage.
SMH has soared 45.1% year to date. This fund charges 35 bps as fees. It traded at a volume of 8.55 million shares in the last trading session. This fund sports a Zacks ETF Rank #1.
This fund, with a market value worth $1.65 billion, provides exposure to the 31 largest U.S.-listed securities of companies engaged in the semiconductor business. Of these, AMD carries the sixth spot, holding 5.23% of the fund. NVDA holds the first spot in this fund, with 10.29% weightage.
SOXQ has soared 54.9% year to date. This fund charges 19 bps as fees. It traded at a volume of 1.07 million shares in the last trading session. This fund sports a Zacks ETF Rank #1.
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ETFs to Buy as AMD Shares Jump 15% Following Q1 Earnings Beat
Key Takeaways
Shares of Advanced Micro Devices (AMD - Free Report) jumped 15% on the bourses yesterday, in the extended trading session (as cited in CNBC), following the company’s better-than-expected first-quarter 2026 results. The upward trajectory in its share price was also driven by the chipmaker’s second-quarter revenue forecast, which beat Wall Street’s expectations.
AMD’s server CPU TAM is projected to reach more than $120 billion by 2030, as the company continues to witness a significant increase in demand for CPU compute requirements amid the rapidly accelerating artificial intelligence (AI)-led technology boom.
On the other hand, strong momentum in its Data Center business is fostering deeper, long-term customer engagements, including large-scale, multi-generation deployments. Its expanded strategic partnership with Meta to deploy up to 6 gigawatts of AMD Instinct GPUs across several product generations is a prime example of that.
These strategic developments and aggressive forward-looking projections are expected to provide a sustained tailwind for AMD’s share price. For many investors, this combination of immediate earnings outperformance and long-term AI market-share gains creates a compelling case for adding the stock to their portfolios.
However, direct investment in AMD stock carries company-specific risks, including capacity constraints in advanced packaging and volatile HBM4 memory pricing, both of which could pressure margins. With the stock now trading at a notable premium after the recent rally, initiating a position at current levels may expose investors to a near-term pullback if elevated market expectations are not fully met.
For investors looking to capitalize on AMD’s robust growth trajectory without being fully exposed to the single-stock volatility that often follows such rapid price surges, a more prudent strategy would be to invest in Exchange-Traded Funds (ETFs) with significant exposure to this chipmaker. This approach allows investors to capture the potential upside of AMD’s innovation cycle as well as the gains of other tech leaders while mitigating the risks associated with individual stock ownership in a high-valuation environment.
But before diving straight into these ETFs, let us check AMD’s overall performance in the first quarter in terms of other metrics.
A Brief Analysis of AMD’s Q1 Results
AMD’s first-quarter earnings beat the Zacks Consensus Estimate by 5.4%, while revenues topped the mark by 4.1%. On a year-over-year basis, the company registered double-digit growth on both counts.
The revenue increase was primarily driven by strong growth in the Data Center and Client and Gaming segments, along with the Embedded segment’s return to growth.
In particular, AMD’s CEO has identified the company’s Data Center business as AMD’s primary growth driver. The business delivered record revenues worth $5.8 billion, which surged 57% year over year, driven by strong demand for EPYC processors and the continued ramp up of Instinct GPUs.
AMD is making significant strides in its software business with ROCm, enhancing its performance and scalability. AMD is also witnessing strong customer demand for its Helios platform, underpinned by leadership in memory bandwidth and scale-out capacity.
In terms of new products, the company is currently sampling its MI450 series GPUs, with production on track for the second half of 2026. It also introduced the Ryzen AI 400 series and the Ryzen AI Pro 400 series desktop CPUs in the first quarter, expanding its AI PC offerings across both consumer and commercial systems.
AMD expects client revenues to grow year over year and outperform the market, driven by the strength of its Ryzen portfolio and expanding commercial adoption. The company expects PC shipments to decline in the second half of 2026, primarily due to elevated memory and component costs.
AMD also expects to deliver tens of billions in annual Data Center AI revenues by 2027, surpassing its long-term growth target of over 80%.
For the June quarter of 2026, AMD forecasts revenues in the range of $10.9-$11.5 billion, implying approximately 46% year-over-year growth at the midpoint. The Zacks consensus estimate of $10.43 billion remains below this range.
AMD-Heavy ETFs to Buy
iShares Semiconductor ETF (SOXX - Free Report)
This fund, with net assets worth $31.45 billion, offers exposure to 30 U.S. companies that design, manufacture, and distribute semiconductors. Of these, AMD carries the third spot, holding 7.73% of the fund. Micron Technology (MU - Free Report) holds the first spot in this fund, holding 8.49% weightage.
SOXX has surged 60.3% year to date. This fund charges 34 basis points (bps) as fees. It traded at a volume of 7.11 million shares in the last trading session. This fund sports a Zacks ETF Rank #1 (Strong Buy).
Invesco AI and Next Gen Software ETF (IGPT - Free Report)
This fund, with a market value worth $899 million, offers exposure to 101 companies that manufacture technologies or products that contribute to future software development through direct revenues. Of these, AMD carries the sixth spot, holding 6% of the fund. SK Hynix holds the first spot in this fund, with 9.69% weightage.
IGPT has rallied 40.5% year to date. This fund charges 56 bps as fees. It traded at a volume of 0.26 million shares in the last trading session. This fund holds a Zacks ETF Rank #1.
Invesco Semiconductors ETF (PSI - Free Report)
This fund, with a market value worth $2.02 billion, offers exposure to 31 semiconductor companies. Of these, AMD carries the second spot, with 5.97% of the fund. MaxLinear holds the first spot in this fund, with 8.73% weightage.
PSI has soared 77.1% year to date. This fund charges 56 bps as fees. It traded at a volume of 0.34 million shares in the last trading session. This fund sports a Zacks ETF Rank #1.
VanEck Semiconductor ETF (SMH - Free Report)
This fund, with total assets worth $60.65 billion, offers exposure to 26 companies involved in semiconductor production and equipment. Of these, AMD carries the fifth spot, with 5.95% of the fund. NVIDIA (NVDA - Free Report) holds the first spot in this fund, with 16.91% weightage.
SMH has soared 45.1% year to date. This fund charges 35 bps as fees. It traded at a volume of 8.55 million shares in the last trading session. This fund sports a Zacks ETF Rank #1.
Invesco PHLX Semiconductor ETF (SOXQ - Free Report)
This fund, with a market value worth $1.65 billion, provides exposure to the 31 largest U.S.-listed securities of companies engaged in the semiconductor business. Of these, AMD carries the sixth spot, holding 5.23% of the fund. NVDA holds the first spot in this fund, with 10.29% weightage.
SOXQ has soared 54.9% year to date. This fund charges 19 bps as fees. It traded at a volume of 1.07 million shares in the last trading session. This fund sports a Zacks ETF Rank #1.