Core Viewpoint - Citigroup's report indicates that Microsoft's revenue and profit performance last quarter was robust, with Azure cloud business growing 38% year-on-year, slightly below market expectations of 39% to 40% growth [1] Group 1: Financial Performance - Microsoft's strong business order growth of 228% year-on-year was a key driver of performance, supported by the previously announced partnership with OpenAI and new contracts with Anthropic [1] - Capital expenditure reached $37.5 billion, exceeding market expectations of $34 billion [1] Group 2: Outlook - The quarterly performance outlook for Microsoft is mixed, with memory and supply chain issues leading to weakness in the personal computing (MPC) segment, which negatively impacted earnings per share [1] - However, the outlook for Azure shows a slight increase in growth expectations compared to the previous quarter and is slightly above market expectations [1] Group 3: Investment Rating - Citigroup currently maintains a "Buy" rating for Microsoft with a target price of $660 [1]

Company Overview - AMD held its first analyst day in over three years, with CEO Lisa Su projecting the data center total market to reach $1 trillion by 2030 and updating revenue and margin guidance [1][4] - AMD's shares have increased over 115% this year and more than 240% since April, largely driven by a partnership with OpenAI [2] Analyst Reactions - Wells Fargo raised its price target for AMD from $300 to $345, citing a stronger-than-expected financial model and a path to $20 EPS by 2029 [6] - Missoul increased its price target from $275 to $285, noting that the 35% annual sales growth rate was already implied for 2026 and 2027, with estimates for 2028 to 2030 exceeding expectations [7] - Evercore ISI also raised its price target to $283, expressing incremental positivity towards AMD following the analyst day [8] - Goldman Sachs maintained a neutral rating with a price target of $210, highlighting concerns over AMD's reliance on the OpenAI deal and execution uncertainties [9] - Morgan Stanley emphasized the importance of MI350 market share as a key variable for AMD's performance [10] - Citi maintained a neutral rating with a price target of $260, suggesting that investor expectations were already aligned with AMD's announcements [11] Market Performance - AMD's stock rose over 10% following the analyst day, reflecting positive sentiment from analysts despite some skepticism regarding the OpenAI partnership [5][12] - The overall market showed mixed reactions, with the S&P 500 dipping while the Dow reached record highs, influenced by various sectors including banks and consumer goods [17]