Core Insights - AMD's stock has increased by 53% since the last coverage, indicating strong market performance and investor confidence [1] - The collaboration with OpenAI has positively influenced AMD's stock performance, suggesting strategic partnerships are beneficial for growth [1] Company Overview - AMD is focusing on identifying high-potential investment opportunities, particularly those with asymmetric risk-reward profiles, aiming for a minimum upside potential of 3-5 times the downside risk [1] - The company emphasizes the importance of risk management, seeking a strong margin of safety to protect against capital impairment while maximizing long-term compounding [1] Investment Strategy - The investment horizon for AMD is set at 2-3 years, allowing the company to endure market volatility and focus on disciplined capital allocation for superior returns over time [1]

We're very excited about our relationship with OpenAI. AMD and OpenAI will work even more closely on future hardware, software, networking, and system level roadmaps and technologies. We expect this partnership will significantly accelerate our data center AI business with the potential to generate well over a hundred billion in revenue over the next few years.It's a pretty unique time for AI right now. Our AI business is entering a new phase of growth and is on a clear trajectory towards tens of billions i ...

Core Viewpoint - AMD reported strong earnings but faced pressure on its stock price due to profit-taking and concerns over data center margins and revenue visibility in AI [2][11]. Financial Performance - AMD beat earnings expectations, with a significant year-to-date stock increase of over 100% [11]. - The company is projected to generate $10 billion in AI data center revenue by 2026, potentially doubling to $20 billion by 2027 [9]. AI Strategy and Partnerships - AMD has laid out an ambitious AI roadmap, including new agreements with OpenAI and Oracle, which are seen as potential drivers for significant AI revenue growth [2][9]. - The upcoming analyst day is expected to provide more clarity on AMD's AI revenue streams and growth potential [5][6]. Competitive Landscape - AMD is recognized as a strong competitor to Nvidia, with a history of offering more affordable products [7]. - Despite the competition, AMD's partnerships and product roadmap may position it well in the AI market, although it may not fully replace Nvidia's dominance [8]. Supply Chain Considerations - The production capacity of Taiwan Semiconductor Manufacturing Company (TSMC) is highlighted as a critical factor for AMD's ability to meet demand for its products [13][14]. - Physical limitations in chip production could impact AMD's ability to capitalize on AI demand, emphasizing the importance of TSMC's expansion [14].

Core Insights - Advanced Micro Devices (AMD) reported third-quarter 2025 non-GAAP earnings of $1.20 per share, exceeding the Zacks Consensus Estimate by 2.56%, with a year-over-year increase of 30.4% and a sequential increase of 150% [1] - Revenues reached $9.25 billion, surpassing the Zacks Consensus Estimate by 6.02%, reflecting a year-over-year growth of 35.6% and a sequential growth of 20.3% [1] Financial Performance - Data Center revenues increased 22.3% year over year to $4.34 billion, accounting for 47% of total revenues, with a sequential increase of 34% [3] - Client segment revenues surged 46.2% year over year to $2.75 billion, representing 29.7% of total revenues, with a sequential increase of 10% [8] - Gaming segment revenues skyrocketed 181% year over year to $1.3 billion, making up 14% of total revenues, with a sequential increase of 15.7% [9] - Non-GAAP gross margin expanded by 40 basis points year over year to 54%, significantly better than the previous quarter's 43.3% [13] - Adjusted EBITDA rose 28.8% year over year to $2.43 billion, with a sequential jump of 123.4% [13] Segment Performance - Client and Gaming operating income surged 201% year over year to $867 million, with a segment operating margin expansion of 520 basis points year over year [15] - Data Center operating income reached $1.07 billion, a significant recovery from a loss of $155 million in the year-ago quarter [15] - Embedded segment revenues declined 7.6% year over year to $857 million, accounting for 9.3% of total revenues [11] Strategic Partnerships and Developments - AMD was selected by OpenAI as a preferred partner to build 6 gigawatts of next-generation AI computing capacity, starting with 1 GW of AMD Instinct MI450 GPUs in 2026 [5] - Collaborations with major companies like Cisco Systems, IBM, and Oracle are enhancing AMD's market position in AI and cloud computing [6][4] - The launch of ROCm 7 software aims to improve AI training and inference performance, delivering up to 4.6 times higher inference performance compared to the previous version [7] Cash Flow and Shareholder Returns - As of September 27, 2025, AMD had cash and short-term investments of $7.24 billion, up from $5.87 billion in June [17] - Operating cash flow was $1.79 billion in Q3 2025, compared to $1.46 billion in Q2 2025, with free cash flow at $1.53 billion [18] - AMD returned $89 million to shareholders through its share repurchase program, with $9.4 billion remaining under its current authorization [19] Future Outlook - AMD expects fourth-quarter 2025 revenues of $9.6 billion (+/-$300 million), indicating year-over-year growth of approximately 25% and sequential growth of approximately 4% [20] - The company anticipates a non-GAAP gross margin of roughly 54.5% for Q4 2025 [20]

Group 1 - Futures for the Dow Jones Industrial Average and other major stock indexes dipped in premarket action as Wall Street awaited key jobs data [1] - Advanced Micro Devices (AMD) reported third-quarter earnings that beat expectations, but the stock dropped due to market reactions [4] - Astera Labs also topped earnings targets, yet its stock declined due to concerns over profit margins [4] Group 2 - The stock market ended near highs, with Amazon boosting certain sectors as Palantir's earnings were anticipated [4] - Palantir and Robinhood are set to report earnings soon, with AMD also in focus for its Q3 results [4] - The ongoing AI momentum is expected to influence growth trajectories for companies like Palantir and AMD [4]

Shares of AMD hovering around the flatline. They've come back and are now a little bit higher despite posting a beat in Ray's quarter. Investors zeroing in on key metrics like margins and AI growth.Mackenzie Sagalos has the details in today's tech check segment. McKenzie, what are you hearing on AMD. >> So that AMD stock, it had been on a tear heading into the print, but you said it, those shares trading only fractionally higher as investors digest a report that showed any sort of significant AI payoff is s ...

Core Insights - AMD's stock performance has been stable, with shares slightly higher after reporting earnings that exceeded expectations, but investors are focused on margins and AI growth potential [1][2][3] Financial Performance - AMD reported a solid earnings beat and is guiding for 25% revenue growth in Q4, which is better than consensus but below some investors' aggressive expectations [3] - The legacy PC chip business continues to drive sales, with its revenue more than triple that of data center growth [4] AI Business Outlook - AMD has secured significant partnerships with OpenAI, Oracle, and the US Department of Energy, which are expected to scale its AI business into the tens of billions, but not until 2027 [3] - There are concerns regarding the profitability of AMD's new AI business, as gross margins were in line for both Q3 and Q4, raising questions about future revenue from AI [5] Market Context - AMD faces challenges with China exports not contributing to current results, and the upcoming investor day is anticipated to provide more insights [5] - The competitive landscape shows AMD trailing behind rivals in the AI chip market, with Qualcomm and Nvidia set to report earnings soon [5][6] Industry Trends - OpenAI's enterprise business has reached 1 million business customers, with significant growth in paid seats for ChatGPT enterprise, indicating a strong demand for AI solutions [6][7] - The question remains about when the substantial AI revenue will materialize, as current earnings reports do not reflect the anticipated growth from AI partnerships [9][10]

Core Viewpoint - Advanced Micro Devices (AMD) shares experienced a decline despite exceeding analysts' expectations for earnings and revenue, primarily due to Amazon's decision to dissolve its stake in the company [1][2]. Financial Performance - AMD's third-quarter earnings surpassed the Zacks Consensus Estimate by 2.6%, with revenues exceeding expectations by 6%. Year-over-year, revenue increased by 36%, and net income surged by 60% [6]. - The Data Center, AI, Server, and PC segments drove broad-based demand, contributing to the growth in the reported quarter [6]. - The company reported cash and cash equivalents of $4.81 billion at the end of September 2025, up from $3.79 billion at the end of December 2024. Free cash flow more than tripled, driven by record sales of EPYC, Ryzen, and Instinct processors [7]. Product Developments - AMD launched ROCm 7 software, its most advanced release, which enhances distributed inference and code portability across hardware [8]. - The company expanded its x86 embedded portfolio with the EPYC Embedded 4005 series and Ryzen Embedded 9000 processors, targeting network security and industrial applications [9]. - Upcoming product launches include the next-generation 2-nanometer Venice processors and MI400 Series accelerators, with Oracle as a lead launch partner for the MI450 Series [10]. Investment Opportunities - For investors seeking exposure to AMD while mitigating risks, Exchange-Traded Funds (ETFs) with significant AMD holdings are recommended [4]. - Notable ETFs include: - iShares Semiconductor ETF (SOXX), with AMD holding 9.97% and a year-to-date gain of 38.3% [12]. - Invesco PHLX Semiconductor ETF (SOXQ), with AMD holding 9.87% and a year-to-date gain of 40.9% [13]. - Invesco AI and Next Gen Software ETF (IGPT), with AMD holding 10.56% and a year-to-date gain of 31% [14].

Yeah, I mean look, AMD beat on the top and bottom line. They beat on uh data center revenue. They beat on client revenue. They beat on gaming revenue. So, they they beat across the board.Uh they even beat on fourth quarter guidance. But the big deal here is it just wasn't enough. I think that Wall Street had lofty expectations already.The stock prices already soared far higher than a lot of people, I think, expected. Uh, and then when they came in with the results this quarter, it just didn't make people as ...

Core Insights - AMD reported strong earnings, beating expectations on revenue and earnings per share across various segments including data center, client, and gaming [1][5][9] - Despite the positive results, the stock did not react favorably due to high pre-existing market expectations and a significant run-up in stock price prior to the earnings report [2][7][8] Financial Performance - Q3 adjusted EPS was $1.20, beating the street estimate of $1.17 [5] - Q3 revenue reached $25 billion, exceeding the estimate of $24 billion [5] - Q3 adjusted operating margins were 24%, slightly below the consensus of 24.8% [6] - For Q4, AMD guided revenue between $9.3 billion and $9.9 billion, above the street estimate of $9.21 billion [6] Segment Performance - Gaming revenue increased by 181% year-over-year, driven by the refresh of Sony and Microsoft gaming systems [10] - Client revenue rose by 50% annually, while server revenue grew by 22%, indicating continued market share gains against Intel [10] Strategic Partnerships - AMD's recent deals with OpenAI and Oracle are expected to enhance its position in the AI market, although the financial impact of these deals will not be reflected until future quarters [3][12] - The new MI400 platform and Helios rack scale system are set to compete directly with Nvidia's offerings, marking a significant strategic move for AMD [12][13] Market Outlook - The company is seen as a primary alternative to Nvidia in the AI space, with potential for incremental growth as AI investments continue to rise [18][21] - Concerns regarding AMD's business in China were noted, with current guidance excluding this market due to uncertainties [14][15] Investor Sentiment - Despite strong performance, initial after-hours trading saw AMD's stock slip by approximately 2.5%, reflecting investor disappointment in not meeting elevated expectations [8]