Core Insights - High-growth tech stocks like Palantir and AMD are experiencing a pullback despite strong AI-driven Q3 results, raising concerns about overvaluation in the broader market [1][2] Palantir Highlights - Palantir raised its full-year revenue outlook from $4.14–$4.15 billion to $4.39–$4.4 billion, driven by a 63% yearly increase in Q3 sales to $1.18 billion [3][4] - The U.S. commercial segment revenue surged over 120% during Q3, reflecting high demand for Palantir's AI Platform [3] - Q4 revenue outlook was raised from $1.19 billion to $1.33 billion, with full-year adjusted operating income expected to exceed $2.15 billion and free cash flow target increased to $1.9-$2.1 billion [4] AMD Highlights - AMD's Q4 sales guidance was raised by $400 million to $9.6 billion, reflecting confidence in its AI and data center businesses despite geopolitical constraints [5] - Q3 sales reached a record $9.24 billion, a 35% increase from $6.81 billion a year ago, with free cash flow of $1.53 billion, over 200% growth from the previous year [8] Valuation Concerns - Palantir trades at a high forward earnings multiple of 266X, while AMD is at 60X, compared to the S&P 500's 25X [10] - Palantir's price-to-sales ratio is extremely high at 99X, while AMD's is 11X, against the broader market's 5X [11] Earnings Revisions and Market Sentiment - Palantir's FY25 and FY26 EPS estimates increased by 10% and 20%, respectively, with annual EPS expected to grow 78% this year and 43% in FY26 to $1.04 [12] - AMD holds a Zacks Rank 3 (Hold), with FY26 EPS estimates trending modestly higher, projected to reach $6.09 [15] Conclusion - Following strong Q3 results, the market may reward Palantir's stock amid broader pullbacks, with increasing free cash flow enhancing long-term profitability prospects for both companies [16]