Advanced Micro Devices lifts outlook on AI data centre demand, risks remain

Market Performance

South African Market Summary

South African equities ended firmer yesterday, with both the JSE All Share and Top 40 indices gaining 0.31% to close at 115,017.05 and 107,026.82 points, respectively. Investor attention remained on the energy sector after Reuters reported that global commodities trader Trafigura is among three bidders for a 36.36% stake in Sasol’s Natref refinery, South Africa’s only inland crude oil refinery. The stake became available after Prax Group entered administration in 2025. Separately, South Africa extended fuel tax cuts for May and June to ease household pressure. Diplomatic tensions also drew attention, with Pretoria engaging Nigeria and Ghana over rising anti-immigrant sentiment and reported attacks on foreign nationals.

European Market Summary

European equities recovered on Tuesday, with the STOXX 600 rising 0.7% to 609.72 points after its sharpest one-day decline in a month, supported by gains in technology stocks and stronger corporate earnings. However, upside was capped by signs of escalating US-Iran tensions. Most major regional bourses advanced, although the UK’s FTSE 100 fell 1.4% as HSBC dropped 6.2% after reporting an unexpected $400 million loss linked to a UK fraud case, weighing on quarterly profit. Macro data also pointed to pressure, with Ireland’s services PMI slipping to 49.7 in April, its first contraction since February 2021. Separately, the Bank of England estimated QE-related losses of around £125 billion.

US Market Summary

US equities advanced on Tuesday, with the S&P 500 and Nasdaq closing at record highs, supported by strength in Intel and broader AI-linked stocks as the US-Iran ceasefire remained intact. Improved geopolitical sentiment helped ease concerns over potential disruption around the Strait of Hormuz, shifting investor focus back to corporate earnings. AMD rose 4% ahead of its quarterly results, with analysts expecting a 33% revenue increase. First-quarter S&P 500 earnings are tracking 28% higher year-on-year, according to LSEG, marking the strongest growth since 2021. Macro data remained mixed, with job openings at 6.87 million and ISM services at 53.6, reinforcing expectations that rates may remain higher for longer.

Asian Market Summary

Asian markets advanced on Wednesday, tracking record closes on Wall Street, with South Korea’s KOSPI leading gains after an AI-driven rally in semiconductor shares pushed the index above 7,000 points for the first time. Samsung Electronics also reportedly crossed the $1 trillion market-cap threshold, underscoring investor appetite for AI hardware exposure. Elsewhere, Hong Kong’s economy expanded 5.9% year-on-year in the first quarter, its strongest quarterly growth in nearly five years, while China’s services PMI improved to 52.6 in April, signalling continued expansion despite weaker overseas demand. In Australia, the central bank raised rates for a third time this year, citing sticky inflation and oil-price risks linked to Middle East tensions.

Commodity Market Summary

Gold prices rose more than 1% on Wednesday, supported by a weaker dollar and improved investor demand as softer oil prices eased concerns over inflation and higher-for-longer interest rates. Oil declined for a second consecutive session after US President Donald Trump signalled that a possible peace agreement with Iran could be reached, raising expectations that constrained Middle East supply may resume flowing. The Strait of Hormuz remains a key focus for energy markets, given its role in global oil and gas trade, although the US Navy blockade of Iranian ports continues. Supply data remained supportive, with API figures showing US crude inventories fell by 8.1 million barrels, alongside declines in gasoline and distillate stocks.

Currency Market Summary

The South African rand traded in a narrow range on Tuesday as renewed US and Iranian strikes in the Gulf tested a fragile truce and weighed on broader risk appetite. However, the dollar retreated against most major currencies on Wednesday after President Donald Trump signalled progress towards a potential comprehensive agreement with Iran, including a brief pause in US escort operations through the Strait of Hormuz. Comments from US Secretary of State Marco Rubio also suggested Washington had achieved its military objectives, easing fears of further escalation. Currency markets are now focused on this week’s US non-farm payrolls report, which could determine whether labour-market resilience supports the Federal Reserve’s higher-for-longer policy stance.

Domestic Company News

Aspen Pharmacare Holdings Limited (APN) +5.61%

Aspen Pharmacare Holdings has received approval from the South African Health Products Regulatory Authority to release the first commercial batches of human insulin manufactured for sale in South Africa. The products were produced at Aspen’s sterile finished dose form manufacturing facility in Gqeberha, Eastern Cape, marking a key milestone in the group’s human insulin contract manufacturing agreement. For investors, the development reinforces Aspen’s strategic role in local pharmaceutical production and healthcare supply-chain security, while supporting South Africa’s broader objective of reducing reliance on imported critical medicines. The commercialisation of locally manufactured insulin also enhances the utilisation and relevance of Aspen’s domestic sterile manufacturing capacity.

MC Mining Limited (MCZ) +8.70%

MC Mining has completed the final closing of Kinetic Development Group’s subscription, with KDG, through Kinetic Crest, now holding 51.00% of the company’s issued ordinary share capital on a fully diluted basis. The transaction, completed on 22 April 2026, follows the issue of 28.87 million new shares and receipt of the full US$90 million aggregate consideration. Proceeds have supported construction and commissioning work at the flagship Makhado Project, including infrastructure, power supply and processing facilities. For investors, the transaction materially strengthens MC Mining’s balance sheet, provides access to KDG’s technical and operational expertise, and positions the group to advance Makhado towards commercial production as a metallurgical coal operation.

 Global Company News

Advanced Micro Devices Inc. (AMD) +4.02%

Advanced Micro Devices forecast second-quarter revenue of $11.2 billion, ahead of Wall Street expectations of $10.52 billion, supported by strong demand for data-centre chips as cloud providers accelerate AI infrastructure spending. First-quarter data-centre revenue rose 57% to $5.8 billion, beating estimates, while adjusted EPS of $1.37 and revenue of $10.25 billion also exceeded expectations. CEO Lisa Su said AMD now expects the server CPU addressable market to grow at more than 35% annually to over $120 billion by 2030, reflecting rising inference workloads. However, competition from Intel and tighter TSMC capacity remain key risks. Consumer demand may also soften as higher memory and component costs pressure PC and gaming shipments.

HSBC Holdings PLC (HSBA) -5.86%

HSBC reported a first-quarter pretax profit of $9.4 billion, below expectations of $9.59 billion, after booking an unexpected $400 million loss linked to private credit-related loans and the collapse of UK mortgage lender Market Financial Solutions. The loss, alongside provisions related to the US-Iran conflict, lifted expected credit losses to $1.3 billion and prompted HSBC to raise its 2026 credit charge guidance to 45 basis points of average gross loans from 40 basis points. For investors, the update highlights growing regulatory and market scrutiny of banks’ exposure to the $3.5 trillion private credit industry. HSBC shares fell over 6%, with sentiment further pressured by softer wealth revenue growth relative to Standard Chartered.

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