AMD fourth quarter earnings just now crossing the wire. Let's get to Young Finance tech Dan Howie for the results. Dan, what do you see.>> Shares are down more than 5% but they beat on both the top and bottom line. Uh we saw EPS of $153 on revenue of $10.3% billion. That uh was ahead of expectations of $132 and 9.6% billion.Uh we also saw uh the data center revenue come in at 9.5% uh uh sorry uh data center revenue came in at 5.4% billion versus expectations of 4.97% billion. They also gave better thanex ex ...

[music] We're back on Morning Trade Live. Let's focus on AMD ahead of this afternoon's earnings report. More on that in just a little while.But look at the performance over the last year for this stock compared to say Nvidia and Broadcom. All three companies making solid moves higher. But AMD is the clear outperformer up nearly 120% [music] year-over-year.So the big question is, can it keep it up. We're going to be getting a little bit more of an update later. AMD is the focus of the morning trade.So joinin ...

Core Viewpoint - Advanced Micro Devices (AMD) stock has doubled in value over the past year, trading at a high price-to-earnings multiple, which may be justified by the anticipated growth in infrastructure spending for artificial intelligence (AI) [1] Group 1: AI Growth and Demand - AMD CEO Lisa Su highlighted that AI computing power has surged from 1 zettaflop in 2022 to over 100 zettaflops, driven by AI training and inferencing in data centers [2] - Over the next five years, AI compute is expected to need a further 100-fold increase to support more advanced AI applications [2] - The potential of AI in sectors like healthcare, autonomous transportation, and humanoid robots indicates a substantial increase in computing power is necessary for AI to reach its full potential [3] Group 2: Product Offerings and Market Position - AMD is launching new products, including the Helios rack system, which will feature 72 GPUs operating as a single computing unit, along with EPYC CPUs and networking components [5] - The integration of multiple products into a single system is expected to enhance AMD's profit margins [5] - Despite competition from larger chip companies, AMD's strategy to offer rack-scale systems for data centers positions the stock as a compelling buy [6] Group 3: Financial Projections - Wall Street analysts project AMD's revenue to grow from $25 billion in 2024 to $62 billion by 2027, indicating significant earnings growth and attractive returns for investors [6]

Core Insights - The demand for AI infrastructure is driving significant investment in data centers and related technologies, with leading companies like Advanced Micro Devices (AMD) and Hut 8 positioned to benefit from this trend [1][2]. Group 1: Advanced Micro Devices (AMD) - AMD experienced a remarkable 77% stock increase in 2025, largely due to a partnership with OpenAI, and is expected to continue its growth trajectory in 2026 [3][5]. - The company reported a 36% year-over-year revenue growth in Q3, with adjusted net income rising by 31% [3][6]. - AMD anticipates a long-term revenue growth rate of 35% annually, with adjusted earnings per share projected to exceed $20 within the next three to five years [6]. Group 2: Hut 8 - Hut 8 signed a significant 15-year, $7 billion agreement with Anthropic to provide 245 megawatts of data center capacity, potentially scaling to 2.3 gigawatts, with the deal's value possibly increasing to $17.7 billion [8][9]. - The company reported a 91% year-over-year revenue increase in Q3, reaching $83 million, primarily driven by Bitcoin mining operations [12]. - Hut 8's market capitalization stands at $6.3 billion, which is considered relatively low compared to the value of its contracts and growth potential [10][11].

Core Viewpoint - AMD anticipates a significant increase in data center revenue, projecting a growth of 60% to reach $100 billion over the next 3 to 5 years, which has led to a spike in its stock price [1][2] Group 1: Market Growth and Opportunities - The total market for AMD's data center chips is expected to grow to $1 trillion by 2030, indicating a robust demand for AI infrastructure [2][6] - The AI market is projected to exceed $1 trillion by 2030, with AMD initially estimating it at $500 billion for 2028 [6][29] - AMD's data center AI business is targeted to grow at an 80% compound annual growth rate over the next 3 to 5 years [21] Group 2: Strategic Partnerships and Technology - AMD has formed significant partnerships with major companies such as OpenAI, Oracle, and Meta, enhancing its market position [11][21] - The company is currently in production with its MI350 chip family and is preparing to launch the next generation MI400 series, which is expected to be highly competitive [11][13] - AMD emphasizes the importance of having both training and inferencing chips to meet the diverse needs of AI applications [7][10] Group 3: Manufacturing and Supply Chain - AMD is focused on establishing a strong U.S. manufacturing footprint while continuing to collaborate with Taiwan Semiconductor Manufacturing Company (TSMC) [26][28] - The company is exploring various manufacturing options to ensure competitive technology and pricing [26][28] Group 4: Market Dynamics and Competition - AMD acknowledges the competitive landscape, particularly with Nvidia, and aims to provide technology that reduces the total cost of ownership for data centers [13][21] - The company is aware of the dynamic situation regarding its business in China, currently not including China AI revenue in its forecasts due to export control policies [33]

Core Viewpoint - The share price of Advanced Micro Devices (AMD) is experiencing a bullish trend due to projected profit growth, particularly driven by increasing demand for AI-related data-center chips [1][3]. Financial Performance - AMD's Q3 2025 results showed revenue of approximately $9.2 billion, a gross margin of 52%, and a 75% year-over-year increase in operating income [5]. - The client and gaming segments also demonstrated strong performance, growing roughly 73% year-over-year [5]. Growth Projections - AMD forecasts data-center revenue to reach $100 billion and earnings to more than triple by 2030, with the data-center market expected to hit $1 trillion [3][4]. - CEO Lisa Su emphasized that AI is central to AMD's long-term strategy, while CFO Jean Hu projected an overall annual growth of 35% and 60% growth in data-center operations over the next three to five years [4]. Stock Price Predictions - ChatGPT predicts AMD stock could reach between $290 and $295 by November 30, with a bullish scenario potentially pushing shares to $300 or $310, while a conservative outlook suggests a slight correction to $275 or $280 [6]. - Wall Street analysts have raised their price targets for AMD, with Wells Fargo increasing its target from $300 to $345 and Melius from $300 to $380 [7][10]. Analyst Sentiment - Overall, analysts are showing confidence in AMD's performance, particularly due to the growing AI-driven demand for its data center chips, although sentiment varies from bullish optimism to measured caution [10].

Core Insights - Advanced Micro Devices (AMD) aims for a $100 billion annual revenue target from data centers, focusing on capturing a larger share of the AI market currently led by Nvidia [1][2] - The data-center chip market is projected to reach $1 trillion by 2030, with AMD's estimates being more conservative compared to Nvidia's [2] - AMD's stock has seen a significant increase of 97% this year, with a notable 16% rise since a recent partnership with OpenAI [3] Company Goals - AMD anticipates a 35% annual growth across its entire business and a 60% growth in its data center segment over the next three to five years [4] - The company projects earnings to rise to $20 per share during this period, contrasting with LSEG's estimate of $2.68 per share for 2025 [4] Market Position and Strategy - Analysts view AMD's targets as ambitious, contingent on the successful deployment of its Helios system to enhance its market share in AI [4] - AMD is leveraging partnerships with OpenAI and Oracle, which could potentially generate significant sales [3]

Group 1: Reddit - Reddit's stock has experienced significant volatility in 2025, down 13% year to date, with fluctuations of up to 37% increase and nearly 46% decrease [3][4] - The company has over 108 million daily average users and reported a revenue growth of 61% in its most recent quarterly report [4][6] - Reddit's advertising model is still in its early stages compared to Meta Platforms, which has a well-established ad ecosystem generating about $500 million daily [5][6] - The integration of AI-powered ad tools is expected to enhance ad targeting and content, potentially improving ROI for marketers [7] Group 2: Advanced Micro Devices (AMD) - AMD's stock has risen approximately 65% since an intra-day low of $76.48 on April 8, indicating strong investor interest [8][9] - The company plans to release its MI400 GPU in 2026, which is expected to offer double the compute power and significantly improve its competitive position against Nvidia [10][11] - In Q1 2025, AMD's data center and client segments saw revenue growth of 57% and 68%, respectively, contributing to an overall annual revenue growth of 36% [12] - AMD's price-to-sales ratio of 7.5 is significantly lower than Nvidia's 24, making it attractive to value-oriented investors [13][14] Group 3: Meta Platforms - Meta Platforms has shown strong performance in digital advertising, generating approximately $160.6 billion of its $164.5 billion total revenue from ads in 2022 [16][17] - The company is set to monetize WhatsApp by placing ads in statuses and channel pages, which could create a new revenue stream [18] - Analysts project Meta's earnings to grow at an average annual rate of 18% over the next three to five years, with WhatsApp's ad revenue potentially exceeding these estimates [19][20]