Core Insights - AMD's stock has increased by 5% following a strong Q1 earnings report and positive market sentiment from a new trade deal announced by President Trump [1] - The company has shown consistent growth, with Q1 sales rising 36% year-over-year, driven by data center and AI demand [3][2] Financial Performance - Q1 sales reached $7.43 billion, exceeding estimates of $7.12 billion, and up from $5.47 billion a year ago [3] - Q1 EPS increased by 55% to $0.96, surpassing the Zacks EPS Consensus of $0.93, marking 25 consecutive quarters of exceeding earnings expectations [3][4] - AMD expects Q2 revenue to be around $7.4 billion, reflecting a 27% growth, despite a projected $700 million revenue reduction due to new export license requirements [4][5] Revenue Guidance - For the full year, AMD anticipates a revenue impact of approximately $1.5 billion from export license requirements, with total sales expected to grow by 21% in fiscal 2025 to $31.31 billion [5][6] - FY26 sales are projected to rise another 19% to $37.17 billion [5] Stock Performance - Despite the recent earnings boost, AMD's stock is down 15% year-to-date, underperforming compared to broader indexes and competitor Nvidia [7] - Over the past three years, AMD's stock has only increased by 19%, significantly lagging behind Nvidia's nearly 600% gain [7] Market Position - AMD is currently the second-largest producer of AI GPUs, trailing Nvidia, and has faced challenges in maintaining growth excitement in recent years [8] - Future stock performance may depend on earnings estimate revisions as analysts assess the impact of tariffs and export license requirements [9]

Core Viewpoint - Lam Research's stock surged over 6% following the release of its fiscal 2025 Q3 earnings, driven by stronger-than-expected results and guidance indicating robust demand for semiconductor manufacturing equipment [1][2]. Group 1: Financial Performance - Lam Research reported a 24% year-over-year growth in revenue for the previous quarter, with non-GAAP net income growing at 30% [3]. - The company expects revenue in the current quarter to reach $5 billion, significantly higher than the $4.6 billion consensus estimate, indicating a potential year-over-year increase of 29% [9]. - Earnings are projected to increase at a faster pace of 48% due to margin expansion, with a long-term revenue target of $25 billion to $28 billion by 2028, compared to $16 billion in 2024 [10]. Group 2: Market Demand and Trends - The demand for high-bandwidth memory (HBM) is a significant growth driver for Lam Research, accounting for 43% of its total revenue [4]. - The HBM market is expected to generate $35 billion in revenue this year, up from a previous estimate of $30 billion, driven by increased demand from companies like Nvidia and AMD [5]. - The HBM market is projected to exceed $100 billion in annual revenue by 2030, suggesting solid long-term demand for Lam's memory manufacturing equipment [7]. Group 3: Competitive Positioning - Lam Research's management believes the growing complexity of chips and its strong product portfolio position the company to gain a larger share of the wafer and fabrication equipment market [8]. - The company has not observed significant changes in customer plans despite the ongoing tariff war, which supports its positive outlook [8]. - Lam Research is currently trading at less than 20 times trailing earnings, which is a discount compared to the Nasdaq-100 index's trailing earnings multiple of 27, indicating potential for investment [11]. Group 4: Analyst Outlook - The stock's 12-month price target of $90, as per 33 analysts, suggests a potential gain of 26% from current levels, with expectations for better performance due to healthy bottom-line growth [12].