By November 2, AMD shares had fallen about 28% from their October 6 record close, then rose about 5% in pre-market trading after the chipmaker reported that data center sales nearly doubled year over year and forecast fourth-quarter revenue about two-thirds higher than a year earlier. The article argues AMD's server processor edge is a cost advantage: its chiplet design delivers more performance per dollar than Intel, whose stock fell nearly 29% on October 30 after a weak forecast. In AI chips, AMD sells to OpenAI, Meta, Microsoft and Oracle, but its position is newer and lacks a clear structural moat against Nvidia, which leads the market with software developed over nearly two decades. To win major deals, AMD gave OpenAI and Meta warrants for up to 160 million shares each, about 20% of its share count combined. Management expects AI sales to surpass server processor sales for the first time this quarter, and the coming years will show whether these customers keep buying after the warrants vest.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
AMDsemiconductorsartificial intelligenceearnings
Open a keyword to see other news on the same topic.
Related tickers and likely impact
NVDA
▲ Likely positiveNvidia
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.1T |
| Close on 11/03/2026 | 206.57 |
| Change that session | +2.23% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- AMD Just Doubled Its Own Long-Term Growth Target for 2027
AMD CEO Lisa Su said on the third-quarter earnings call that she expects 2027 revenue to grow more than 80%, more than twice AMD's long-term financial model, though that compares a one-year target with a multi-year model. Data center is expected to exceed 80% of 2027 revenue, up from 64% in the third quarter, when revenue reached $13.377 billion, and fourth-quarter revenue is guided to about $17.0 billion, plus or minus 3%. GAAP EPS was $1.46 and non-GAAP EPS $2.09, but a customer warrant charge will dilute shareholders once vesting and exercise conditions are met. Free cash flow fell to $554M while inventory rose to $11.463B, and Su expects PC unit shipments to decline by a double-digit percentage in 2027. Shares closed at $483.90 on November 3, up 3.65% but down 23.66% in the month before the report, and the next tests are NVIDIA's November 17 report and AMD's fourth-quarter results.
- What sets AMD data centers apart as Intel stock keeps sliding?
AMD beat Wall Street estimates for its third-quarter earnings, as AI data center revenue nearly doubled to $8.55 billion. Guests said Intel posted strong data center numbers but weak PC sales, and its stock plunged, while AMD's forward guidance, contracts, backlog and margins were seen as stronger. Revenue could grow 80% in 2027, up from an earlier estimate of 35%. They noted that higher memory prices and component costs were hurting PC demand, with 2027 PC shipments projected to fall by a double-digit percentage and gaming sales down 8% year-on-year. Commentators compared AMD's focus on data centers to Nvidia's shift from gaming chips to AI.
- What's Happening With AMD Stock?
AMD stock rallied nearly 4% to $483.90 and rose another 5% after hours after a clean Q3 beat and aggressive forward targets. Non-GAAP operating income rose 75% to $3.9B, but free cash flow was only $554M, while inventory climbed about $3B in one quarter to $11.5B. The article calls this mostly timing, since Q4 revenue is guided to about $17B, but the CFO expects to keep investing in inventory and capacity through 2027. Management targets revenue growth above 80%, implying more than $90B in 2027 against consensus 2026 estimates of roughly $50B-$51B, while non-GAAP gross margin is guided to about 55%. Customer warrants created a $1.1B non-cash charge, and the article concludes that demand is verified but how much the 2027 ramp relies on AMD funding its customers is not.
- AMD EPS: Intel's Drag Makes No Sense
Intel (INTC) shares plunged 28% in a single session after its third-quarter report, dragging down chipmakers such as Advanced Micro Devices (AMD) in sympathy. Intel's earnings were up 126% year over year and beat expectations, but its guidance of $15-$16B fell short of the $17.1B Wall Street estimate, with weak PC demand and rising memory and component costs cited as drags. Management expects PC unit shipments to drop roughly 12% in 2026 and 10% in 2027, and PCs account for about half of Intel's revenue. AMD reported revenue up 74% and earnings up 45%, and CEO Lisa Su expects revenue to grow more than 80% in 2027, with Data Center rising to over 80% of total revenue from 64% in Q3. Intel also said agentic AI could expand the server CPU market 5x to over $200B while admitting supply cannot meet demand, which the article sees as an opening for AMD to take share.
- AMD Stock Surges After Hours As Q3 Sales Surge 45% On AI Boom, And Expectations For 80% Revenue Jump In 2027
AMD reported record third-quarter revenue of $13.4 billion, up 45% year-over-year, driven by strong demand for AI processors and data center chips. Data Center revenue reached $8.5 billion, up 97%, on demand for EPYC server CPUs and Instinct MI450 accelerators, and Microsoft, Meta, OpenAI, Anthropic and Oracle have deployed AMD's server solutions. Adjusted earnings per share rose 74% to $2.09, beating analysts' expectations of $13.1 billion in revenue and $1.97 per share. By contrast, Client and Gaming revenue fell 8% to $3.7 billion, with gaming down 40% to $773 million on lower semi-custom console orders, while industry memory chip shortages and rising component prices weighed on consumer PC demand. For Q4 2026, AMD expects revenue of about $17 billion, plus or minus 3%, a 66% year-over-year increase at the midpoint and above the average analyst projection of $16.3 billion; the company expects 2027 revenue to grow more than 80%.
- AMD Earnings Show Big Tech Can’t Get Enough AI Chips
AMD reported third-quarter earnings that beat expectations and issued strong guidance for the rest of the year. The article suggests big technology companies still need large volumes of AI chips.
Related markets
Latest news
- Wall Street veteran says these are some of the most unbelievable charts he has ever seen
The U.S. stock market has split in a historic divergence: the benchmark S&P 500 index has tumbled into deeply oversold territory, while nearly half of its constituent stocks remain decidedly overbought.
- Dow Heads for Best Post-Election Day Peformance in Decades
The Dow was on track for its best post-Election Day performance since 1986.
- Apple reportedly lowers daily AI spending limits for engineers
Apple is cutting employees' AI spending budgets as part of a cost-cutting drive, even as it seeks to put AI at the center of its operations. According to Bloomberg, the daily cap for some engineers fell from $300 to $200 last month and could drop to as low as $100 for some engineering teams; many non-engineering groups already face a $100 cap, which could be reduced to $25. Employees needing higher allowances can seek exemptions from senior leadership, and internal reactions are mixed: some say the old limits were too generous since few used the full $300, while others worry about layoffs. Apple said R&D expenses rose 32% in fiscal 2026 and operating expenses jumped 22% to $75.5 billion, or 16% of net sales. The actual savings from the cuts remain unclear.
- 5 Cheapest AI Data Center Stocks to Buy According to Billionaires
The IEA's October 2026 report estimates hyperscalers will spend over $700 billion on capital investment this year, though constrained power grids, connection queues and slow permitting are obstacles. CBRE's first-half 2026 report found North American primary-market supply rose 33.7% year over year to 10,903 MW, vacancy fell to 1.4%, and 80.4% of capacity under construction was already committed. JLL projects about 100 GW of new capacity from 2026 to 2030, with an estimated $1.2 trillion in real estate investment and $1 trillion to $2 trillion in tenant equipment spending. The IEA expects global data center electricity use to rise from 485 TWh in 2025 to 950 TWh in 2030, but warns equipment shortages and grid limits could slow near-term growth. Among the screened stocks, Western Digital reported fiscal first-quarter revenue of $4.38 billion, up about 55%, with a 58.1% non-GAAP gross margin.
- Shopify Could Be the Best Growth Stock to Buy With $1,000 in November
Shopify closed at a record high of $179.22 per share, a 613% gain from its $25.13 low in 2022, but has since pulled back to about $151. The author believes the company's self-service commerce model is resilient, supported by an ecosystem that includes Shop Pay, Shopify Capital, Shopify Plus, POS systems and AI tools. Revenue grew at a 26% CAGR from 2021 to 2025, the company turned profitable in 2023, and analysts expect revenue and EPS to grow at 28% and 44% CAGRs from 2025 to 2028. The stock trades at 68 times next year's earnings, a premium the author says could be justified by market share gains in enterprise commerce and the high-margin Merchant Solutions segment. The article notes the stock could remain under pressure if inflation stays hot and interest rates stay elevated.
- Lumentum Fell to $750 With Marvell’s Offer Worth $820. Its November 5 Report Tests the Floor
Lumentum agreed to be acquired by Marvell Technology for 4.5 Marvell shares per Lumentum share, a package worth $820 at Marvell's $182 price, while Lumentum fell to $750; the deal is expected to close in the first half of 2028. Lumentum traded at 26x forward earnings, below its five-year average of 30x, and the article says the stock would be about 17% higher at that average multiple than Monday's close. Its September-quarter revenue rose 136.5% to $1.26 billion, adjusted EPS of $4.57 beat its $4.05–$4.35 range, and it guided to $1.575–$1.625 billion revenue for the December quarter. The article identifies the main risk as an easing of the laser shortage, noting the CEO said parts were effectively sold out through early 2029 and that Coherent's report on Wednesday is the first test. Alphabet's Google Cloud revenue rose 103% and Arista guided to 38%–40% growth in 2027, suggesting customers are still spending heavily.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.