Soda & chips: McDonald's and AMD in focus

Welcome to Seeking Alpha's Wall Street Breakfast, where we cover the top news for investors every morning. We've made it to the middle of the trading week. Today is Wednesday, May 6th. I'm Julie Morgan. McDonald's is adding six new crafted beverages to its menu today and a new position to make sure it's made right. The beverage specialist will be focused on making the new more complex drinks. It includes three refreshers. Customers can choose from mango-pineapple flavor with strawberry boba, blackberry passion fruit with freeze-dried dragon fruit, and a strawberry watermelon option. In addition, three crafted sodas are also being added to the menu. The crafted soda is a fountain drink enhanced with flavored syrups and cold foam. Sprite Berry Blast will have blue raspberry syrup, the orange dream resembles a creamsicle, and the Dirty Dr. Pepper is a classic Dr. Pepper with vanilla flavor, each topped with cold foam. The new lineup will be closely watched by rivals such as Starbucks, Taco Bell, Dutch Bros, and Dunkin' looking to protect their market share. The updated drink menu reflects McDonald's push into higher-margin customizable drinks that can attract younger customers and create more traffic beyond lunch and dinner. AMD is up 18% in early trading after reporting first-quarter results and guidance that topped Wall Street's forecast. Shares have gained more than 60 in the past month and more than 250 in the past year amid investor enthusiasm about AI spending For the period ended March 28th AMD said it earned an adjusted per share as revenue rose 38% year-over-year to $10.25 billion. Analysts had expected the company to earn $1.28 on revenues of $9.89 billion for the entire quarter. AMD said it expects second quarter revenue to be between $10.9 and $11.5 billion, which is above the $10.5 billion consensus. On the earnings call, CEO Dr. Lisa Su said the company is seeing meaningful acceleration for CPUs and now expects the market to grow 35% annually and hit $120 billion by 2030. She added in response to the larger total addressable market, AMD is working closely with its supply chain partners to meaningfully increase its wafer and back-end capacity to support the growth. Server CPU revenue is now forecast to grow more than 70% year-over-year in the second quarter, with robust growth in the second half of the year and into 2027. Apple agreed on Tuesday to pay $250 million to settle a shareholder lawsuit that accused the company of delaying AI upgrades to its Siri voice assistant. Plaintiffs accused Apple of having promoted AI capabilities that did not exist at the time, do not exist now, and will not exist for two or more years. The 2024 lawsuit followed the announcement and promotion of a range of AI upgrades at its annual developer conference that year stating they would roll out with new iPhones in the fall In 2025 Apple said that the AI overhaul of Siri would not come until this year and executives have now confirmed that the new Siri features will be unveiled at Apple's annual developer conference next month. Apple did not admit to any fault in the settlement, which still needs to be approved by the judge. The company said in a statement to Reuters that they resolved this matter to stay focused on what they do best, delivering the most innovative products and services to their users. Now for a look at a few other articles that are trending. Anthropic reportedly inks a $200 billion Google Cloud and Chip agreement. Novo says Oral Wegovi's success will soften a sales decline. and DeepSeek reportedly may be valued at $45 billion as China's big fund eyes an investment. On our Catalyst watch for the day, Corning will hold an event for investors and analysts at the New York Stock Exchange. Shareholders with Penumbra will vote on the $14.5 billion buyout offer from Boston Scientific. Anthropic is holding a Code with Claude event in San Francisco to highlight new Claude capabilities. Disney will hold its earnings conference call at 8.30 a.m. Analysts will be focused on the update on the FCC investigation of ABC, streaming momentum, ESPN and the NFL, theme park trends, broader content and AI strategy, and capital allocation plans And Costco will release its monthly sales report after market close On Wall Street stock index futures are higher as investor sentiment improved on hopes of easing tensions between the U.S. and Iran. Washington reaffirmed that the ceasefire between the two countries remains in place, easing immediate fears of a broader escalation. Crude oil is down 7.7% at $94. Bitcoin is up 1.1% at $81,000. Gold is up 3% at $46.99. The FTSE 100 is up 2.2% and the DAX is up 2.3%. Lucid Group is on our list of the biggest movers of the day pre-market. LCID is down 5% after reporting a Q1 top-line miss and a wider-than-expected loss, with revenue rising 20.2% year-over-year to $282.5 million, which is below estimates, and an adjusted net loss of $282 versus expectations of $230. And on today's economic calendar at 8.15 a.m., the ADP Employment Report. That's it for today's Wall Street Breakfast. Thanks for listening. To take full advantage of Seeking Alpha, join the highest quality community of real investors discussing stocks and ETFs at seekingalpha.com slash subscriptions. I'm your host, Julie Morgan. Go out and make it a great day.