For some perspective, Nvidia's data center revenue stood at $41 billion in the last reported quarter, jumping by 56% from the year-ago period. Broadcom, on the other hand, reported $5.2 billion in AI revenue in the previous fiscal quarter, while AMD's data center revenue was even lower at $3.2 billion. All these companies are fabless chipmakers, and all of them go to TSMC to get their chips made.The chip designer is expected to move to TSMC's 3nm process node for manufacturing its Rubin series of AI GPUs ne ...

Core Insights - Both Cathie Wood and Warren Buffett hold shares in Amazon, indicating a rare alignment between the two investors [1][2] - Amazon is perceived as a strong contender in the AI space, trading at a discount compared to peers like Microsoft [4][14] Company Performance - Amazon reported Q3 2025 results with total revenue of $180.2 billion, a 13% increase from Q3 2024's $158.9 billion [5][6] - Earnings for Q3 2025 reached $21.2 billion, up 38.6% from $15.3 billion in Q3 2024, largely due to a $9.5 billion gain from an investment in AI startup Anthropic [6] - The North American segment's operating income declined due to a $2.5 billion legal settlement, but would have increased by 28% without this charge [7] Segment Analysis - Revenue growth for Amazon's segments in Q3 2025: North America at 11%, international at 14%, and AWS at 20% [5] - The international segment's operating income decline was influenced by recent layoffs, which may lead to future cost savings [8] Market Outlook - Amazon's guidance for the current quarter projects total revenue between $206 billion and $213 billion [11] - AWS is expected to double its power capacity by 2027, with a significant increase in demand for AI and core infrastructure [12] Valuation Comparison - Amazon's forward P/E ratio is currently 28.5, which is lower than Microsoft's 33, suggesting potential for valuation expansion if AWS continues to grow [14][15]

Key Points Third-quarter revenue and adjusted earnings per share (EPS) exceeded Wall Street's estimates, with the top-line beat a sizable one. Free cash flow was a record $1.53 billion, up 208% year over year. Fourth-quarter guidance for revenue of $9.6 billion sprinted by the analyst consensus estimate of $9.2 billion. 10 stocks we like better than Advanced Micro Devices › Shares of Advanced Micro Devices (NASDAQ: AMD) are down 3.9% as of 7:42 p.m. ET in Tuesday's after-hours trading, following ...

Core Insights - AMD reported earnings that exceeded Wall Street estimates, driven by stronger-than-expected data center revenue, indicating positive momentum in this segment [1][2] - The company has guided for Q4 revenue above street estimates, suggesting that its investments in AI are beginning to yield results [2] - Despite the positive earnings report, AMD's stock experienced a decline after hours, potentially due to gross margins being in line but not exceeding expectations [3] Company Developments - Amazon has liquidated its entire stake in AMD, valued at approximately $117 million, which contributed to a sell-off in AMD shares following the 13F filing [3][5] - The reason for Amazon's initial stake in AMD was linked to its investment in ZT Systems, a server manufacturer that AMD acquired, leading to the conversion of that stake into AMD shares [4][5] - The liquidation of AMD shares by Amazon should not be interpreted as a strategic exit from AMD, but rather a consequence of the previous investment structure [5]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $170.4 million, a 2% increase year-on-year [16] - Operating income grew 114% to $22.7 million, representing 13.3% of revenue [21] - Earnings per share (EPS) doubled to $0.10 compared to $0.05 in Q3 2024 [22] - Paid subscribers increased by 6% year-on-year to just over 3 million [16][22] - Total gross margin improved to 55.2% from 46.1% in Q3 2024 [19] Business Line Data and Key Metrics Changes - Platform revenue was $82.8 million, up 7% year-on-year, driven by higher paid subscribers [16] - Revenue from products decreased by 3% year-on-year to $87.7 million [16] - Accessories and materials revenue decreased by 17% year-on-year [12][17] - Connected machines revenue increased by 12% due to higher unit sales and average selling prices [16] Market Data and Key Metrics Changes - International revenue was $40.5 million, a 5% increase year-on-year, accounting for 24% of total revenue [17][18] - Positive momentum observed in the UK and Western European markets, with growth in India and Japan [18] Company Strategy and Development Direction - Focus on new user acquisition, user engagement, subscriptions, and accessories and materials [6][12] - Continued investment in hardware product development, materials, engagement, and marketing [5][12] - Emphasis on simplifying user experience and enhancing project-making processes [10][11] - Plans to reclaim market share in accessories and materials through new product offerings [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to sustainable growth despite tariff-related uncertainties [5][24] - Anticipated negative impact of higher tariff costs on margins in Q4 and 2026 [24][56] - Management remains optimistic about holiday season performance based on recent promotional successes [31][32] Other Important Information - Cash and cash equivalents at the end of Q3 were $207 million, with no debt [23] - The company repurchased 441,000 shares during Q3, with $46.9 million remaining on the stock repurchase program [23] - A recurring semiannual dividend of $0.10 per share was authorized for January 2026 [23] Q&A Session Summary Question: Insights on spending trends and revenue seasonality for Q4 - Management noted that sellout of machines is up, indicating effective marketing efforts, but acknowledged ongoing pressure in accessories and materials [29][30] Question: Clarification on tariff impacts on margins - Management explained that unique factors helped margins this year, but tariff impacts are expected to increase in 2024 [36][39] Question: Current AI strategy and its impact on subscriber growth - Management highlighted that AI tools like Create AI are designed to produce vector images optimized for cutting, which is a competitive advantage [45][48] Question: Channel inventory balance going into the holiday season - Management expressed confidence in channel inventory levels and noted enthusiasm from retail partners [52] Question: Directional thoughts on margins for 2026 - Management anticipates margin pressure due to tariffs and plans to manage pricing and promotional strategies to maintain affordability [56]

Core Insights - Advanced Micro Devices (AMD) reported record quarterly results exceeding analysts' expectations, driven by strong demand for AI, resulting in a 36% year-over-year revenue increase to $9.25 billion in Q3 2025 [1][6] - AMD's data center segment, its largest, saw a 22% year-over-year sales increase to $4.3 billion, slightly surpassing expectations [2] - CEO Lisa Su highlighted the results as a significant step in AMD's growth trajectory, emphasizing the expanding compute franchise and scaling data center AI business [3] Financial Performance - AMD's adjusted earnings per share reached $1.20, significantly above analyst estimates [1] - The company anticipates Q4 revenue between $9.3 billion and $9.9 billion, exceeding the analyst consensus of $9.17 billion [4] - The reported results did not include revenue from AMD's MI308 AI chip shipments to China, which are expected to resume following a revenue-sharing agreement [2][4] Market Reaction - Following the earnings release, AMD shares experienced a slight decline of about 1% in extended trading, after a nearly 4% drop during the regular session due to broader market concerns about an AI bubble [4] - Despite the recent stock fluctuations, AMD's shares have more than doubled in value throughout the year [4]

Market Opportunity - MNTN's near-term market opportunity is approaching $120 billion[9, 11] - The U S performance advertising market is estimated at $285 billion with a '25-'27 CAGR of 9 7%[15] - The total U S advertising market is $399 billion with a '25-'27 CAGR of 6 8%[13] - The U S TV advertising market is $84 billion with a '25-'27 CAGR of 1 1%[17] Customer Acquisition and Performance - 97% of MNTN's customers never advertised on TV before[22, 23] - MNTN saw a 67% increase in active PTV customers[24] - Build with Ferguson generated $3 6 billion in advertiser revenue through MNTN campaigns[148, 150] - ThirdLove generated $12 2 million in advertiser revenue with MNTN, averaging a 7 85x ROAS from January 2023 to December 2024[156, 161] - Tarte generated $33 1 million in advertiser revenue with MNTN, with 13% of Tarte's total revenue being generated by MNTN[164] - woom generated $7 9 million in advertiser revenue with MNTN, representing 19% of woom's total U S DTC revenue from March 2023 to the end of 2024[171, 172] Financial Highlights - MNTN's revenue in 2024 was $226 million[99] - MNTN's adjusted EBITDA in 2024 was $39 million[101] - MNTN's client generated revenue from 2020 to 2024 was $25 2 billion[100] - Q3 2025 total revenue was $70 million, with a gross margin of 78 9%[106] - Q3 2025 adjusted EBITDA was $16 million, representing an adjusted EBITDA margin of approximately 23%[106]

Core Insights - Advanced Micro Devices (AMD) reported Q3 earnings that exceeded analysts' expectations for both earnings and revenue, with strong guidance for Q4 [1][2] - The company anticipates Q4 revenue between $9.3 billion and $9.9 billion, surpassing Wall Street's expectation of $9.21 billion [1] Financial Performance - AMD achieved earnings per share (EPS) of $1.20 on revenue of $9.25 billion, compared to analyst expectations of EPS $1.17 on revenue of $8.74 billion [3] - Data center revenue reached $4.3 billion, exceeding the expected $4.1 billion, and up from $3.5 billion in the same quarter last year [3] - The client segment, which includes laptop and desktop chip sales, generated $2.9 billion in revenue, surpassing expectations of $2.6 billion [3] Gaming and AI Developments - The gaming division reported revenue of $1.3 billion, exceeding the anticipated $1.1 billion [4] - AMD has secured significant AI chip deals with OpenAI and Oracle, including a deal to provide OpenAI with up to 6 gigawatts of GPUs [4][5] - Under the Oracle agreement, AMD will deploy up to 50,000 GPUs across Oracle's data centers [5] Stock Performance - AMD's stock has surged 53% over the past month, with a year-to-date increase of 108% and a 79% rise over the past 12 months [5] - Despite strong performance, AMD's market cap is $418 billion, significantly trailing Nvidia, which has a market cap exceeding $5 trillion [6]

Core Insights - AMD reported record financial results for Q3 2025, with revenue reaching $9.2 billion, a 36% increase year-over-year, and a gross margin of 52% [1][2][5] - The company highlighted strong demand for its EPYC and Ryzen processors, as well as Instinct AI accelerators, contributing to significant revenue and earnings growth [2][6] - AMD's outlook for Q4 2025 anticipates revenue of approximately $9.6 billion, reflecting a year-over-year growth of about 25% [10] Financial Performance - Q3 2025 revenue was $9,246 million, up from $6,819 million in Q3 2024, marking a 36% increase [5] - Gross profit for Q3 2025 was $4,780 million, a 40% increase from $3,419 million in Q3 2024 [5] - Operating income rose to $1,270 million, up 75% from $724 million in the same quarter last year [5] - Net income for Q3 2025 was $1,243 million, a 61% increase compared to $771 million in Q3 2024 [5] - Diluted earnings per share increased to $0.75, up 60% from $0.47 in Q3 2024 [5] Segment Performance - Data Center segment revenue was $4.3 billion, up 22% year-over-year, driven by demand for AMD EPYC processors and MI350 Series GPUs [6] - Client and Gaming segment revenue reached $4 billion, a 73% increase year-over-year, with client revenue at a record $2.8 billion, up 46% [6][7] - Gaming revenue surged to $1.3 billion, an increase of 181% year-over-year, attributed to higher semi-custom revenue and strong demand for Radeon GPUs [7] Strategic Partnerships and Developments - AMD announced a strategic partnership with OpenAI to deploy 6 gigawatts of AMD GPUs for AI infrastructure, with the first deployment set for 2026 [8] - Oracle and AMD will collaborate to offer the first publicly available AI supercluster powered by AMD technology, with an initial deployment of 50,000 GPUs starting in Q3 2026 [8] - AMD's collaboration with Cisco and G42 aims to advance secure AI infrastructure across the UAE [8] Future Outlook - For Q4 2025, AMD expects revenue to be approximately $9.6 billion, with a non-GAAP gross margin of around 54.5% [10] - The company anticipates continued growth driven by investments in AI and high-performance computing [2][10]

Core Insights - OpenAI has announced a significant $38 billion partnership with Amazon, marking a strategic move in the AI infrastructure landscape [2][8] - The partnership allows OpenAI to leverage Amazon Web Services (AWS), which holds a 30% market share in the cloud infrastructure sector, enhancing its capabilities alongside other major providers [3][8] - This collaboration is part of OpenAI's broader strategy to diversify its cloud partnerships, reducing reliance on a single provider, as seen with its previous engagements with Microsoft Azure and Google Cloud [5][6][7] Company Relationships - OpenAI has been actively seeking partnerships with various cloud providers, having previously established ties with Microsoft Azure and Google Cloud, and now adding Amazon to its roster [5][7] - The partnership with Amazon includes access to extensive Nvidia chip clusters, which will support OpenAI's training and inferencing workloads [8] Market Position - Amazon remains the leader in the cloud hyperscaler market, followed by Microsoft Azure and Google Cloud, which hold 20% and 13% market shares respectively [3] - OpenAI's strategy reflects a trend among AI developers to seek multiple cloud partnerships to enhance operational flexibility and reduce dependency on any single provider [6]