Welcome back. Shares of AMD are trading higher after reporting a top and bottomline beef for its quarter with investors focusing on areas like growth in its AI chips business. McKenzie Sagalos has more in today's tech check.Mac, the AMD trade is an interesting one versus Nvidia. >> It really is. We don't get the Nvidia numbers for another two weeks, but for all the buzz around AMD's AI push, the actual payoff still isn't showing up in the numbers.Yes, the quarter was a beat and guidance was strong, but inve ...

Core Viewpoint - AMD's recent earnings report showed a strong performance, but investors are still looking for tangible results from its AI chip business, particularly in light of challenges in China and the overall AI market [1][2]. Financial Performance - AMD reported a top and bottom line beat for the quarter, with strong guidance provided [1][2]. - Despite the positive earnings, there are concerns regarding the profitability of AI shipments and overall revenue guidance [5]. AI Business Developments - The company has not yet seen significant revenue from its AI chip business, with analysts questioning the impact of major AI deals during the earnings call [2]. - AMD has received some licenses for its Instant Instinct series, which may allow revenue to start flowing from AI chip sales in China, potentially giving AMD a competitive edge over Nvidia [3]. Market Challenges - AMD faces export restrictions that could result in a loss of $1.5 billion in revenue this year [2]. - The Chinese government is enforcing stricter regulations, compelling state-backed data centers to utilize domestic AI chips and remove foreign hardware, which impacts both AMD and Nvidia [4].

Core Viewpoint - US equities experienced an upward trend, primarily driven by the performance of artificial intelligence and semiconductor stocks, as investors responded positively to favorable economic data and the Supreme Court's skepticism regarding certain legal matters [1] Group 1: Market Performance - US equities advanced on Wednesday, indicating a positive market sentiment [1] - Gains were particularly notable in the artificial intelligence and semiconductor sectors, highlighting investor confidence in these industries [1] Group 2: Economic Data - Investors reacted to upbeat economic data, which contributed to the overall market rally [1] Group 3: Legal Context - The Supreme Court's apparent skepticism towards certain issues influenced investor sentiment, suggesting a complex legal environment that could impact market dynamics [1]

Core Insights - Advanced Micro Devices (AMD) has seen its shares more than double in value in 2025, yet the stock experienced a muted reaction to its record quarterly results and positive outlook on data center chip demand [1][8] - Concerns about an AI bubble have emerged, leading to a cautious sentiment among investors despite AMD's strong performance [3][7] Analyst Reactions - Oppenheimer analysts maintained a neutral rating, expressing concerns about AMD's position as a "second horse supplier" to Nvidia in the AI chip market [4] - Jefferies and HSBC analysts, who have "buy" ratings and $300 price targets, highlighted AMD's potential for AI-driven growth, with HSBC calling its deal with OpenAI a "game changing" development [5] - The mean price target for AMD shares is around $275, with a significant number of analysts holding "buy" ratings [6] Market Context - The broader tech sector is experiencing a rebound, but AMD's stock has not significantly increased despite strong quarterly results [1][7] - The weak market reaction to AMD's results may reflect growing uncertainty regarding the valuations of stocks in the semiconductor sector [3][7]

Core Viewpoint - Advanced Micro Devices Inc (NASDAQ: AMD) is considered a potentially better long-term investment compared to Nvidia Corp (NASDAQ: NVDA) according to Freedom Holding's senior analyst Egor Tolmachev [1] Company Analysis - AMD may offer more favorable investment opportunities for long-term investors than its competitor Nvidia [1] - The analysis suggests that AMD's strategic positioning and growth prospects could lead to superior returns over time compared to Nvidia [1]

The Monetary Authority of Singapore has warned that technology and artificial intelligence companies are trading at inflated valuations. In its annual Financial Stability Review released Wednesday, the regulator said that equity markets are seeing "relatively stretched valuations concentrated in the technology and AI sectors." The MAS said much of the recent rise in global equity markets has been driven by investments linked to AI, leaving many investors heavily exposed to the sector. It also warned that ...

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]