Core Viewpoint - Advanced Micro Devices (AMD) faces pressure on its stock due to reports of Meta Platforms potentially investing billions in Google's AI chips, which could impact demand for AMD's GPUs [1][6][7]. Company Overview - AMD is a globally recognized semiconductor firm specializing in high-performance computing products, including AI accelerators, x86 microprocessors, and GPUs, with a market cap of $348.8 billion [3]. Recent Stock Performance - AMD shares have rallied 80.1% year-to-date but experienced a sharp pullback of 22.8% from an all-time high of $267.08 in November due to various investor concerns [2]. Financial Results - AMD reported record revenue of $9.25 billion for Q3 2025, exceeding Wall Street estimates by $500 million, with a year-over-year growth of 36% [12]. - The data center business grew 22% year-over-year to $4.3 billion, driven by demand for AMD EPYC processors and MI350 Series GPUs [13]. - The client and gaming segment saw a revenue increase of 73% year-over-year, with client revenue rising 46% to $2.8 billion and gaming revenue soaring 181% to $1.3 billion [14]. Future Outlook - Management anticipates Q4 revenue of approximately $9.6 billion, representing a 25% year-over-year increase [15]. - Analysts expect AMD's EPS to grow 20.22% year-over-year to $1.31 in Q4, with revenue projected to increase 25.78% year-over-year to $9.63 billion [16]. Analyst Sentiment - Most Wall Street analysts maintain a positive outlook on AMD, with a consensus "Moderate Buy" rating and an average price target of $291.29, indicating a potential upside of 33.9% from the current price [17]. - Some analysts argue that the AI race is ongoing and that AMD has a solid position to compete, especially with its recent agreements with OpenAI and others [18].