All right, hello everybody. Welcome back to the channel. We are here on the market close. We got a very special day of earnings. SMCI, Tempest, Arista, Rivian, Zeta, Axon, Pinterest, and none other than the company that both of these guys have been analyzing since it was well below $100. And they've been saying, "Hey, I think it's a buy." And the people that listen to them definitely made some money off that. AMD, Neil, Jose, what's up?

>> Hello. Hello. All good. All good. As long as we don't look at the market, I think everything's fine.

>> Yeah, I haven't opened up the portfolio yet, so I still have a happy face, but I'm pretty sure we're about to change that really quickly as we hear what's going on with the market right now.

>> It is definitely a ugly market today and it sucks that AMD has to be reporting on a day like this, but nonetheless, it is pretty ugly. S&P 500 down 1% on the day. There was a bit of recovery in the middle of the day, a little bit of a V-shape, then it kind of went right back down. AMD right there down about 3%. It got to 257. Low was at 247 and now it is in that 250 range. And you know, part of what's happening right here is a liquidation of the crypto markets. I don't know what exactly is going on, but 250 billion has been wiped out from the crypto markets. Bitcoin got below 100,000. It's been bouncing off 99.5. It's at 100.7 right now. Ethereum got below 3200. Right now it's just below 3200. But obviously all the crypto derivative names like a bit mine, Micro Strategy, Coinbase, Robin Hood, all those have been getting hit on the day as well. So obviously an ugly sell-off.

I don't think one could say this is necessarily a panic sell because the VIX is not spiking. You have a big move on the VIX, but it's not some massive move where you would say, okay, it's peak fear and therefore we can kind of move on from it. Nonetheless, the fear and greed index is signaling that it is peak fear because we're at extreme fear, but there might be something potentially more prolonged given it's not as rapid as previous decline. So, real quick before we get into AMD, Neil, I'll ask you first. Any just quick macro thoughts about what we're seeing today?

>> No, I guess I mean I didn't know about the crypto the crypto thing. I guess the last time we saw that was uh what was it? A Friday, right? A crash Friday liquidation event. Margin cold probably across the board. Um but today I guess maybe the government shutdown being again extended might play a role is probably playing a role in this in this sentiment right now. Um plus Jean Pow last week didn't really help with his comments right when he said that the December cut is not a given etc etc. Uh the government shutdown being extended means that we're not really going to get a lot of uh macro data from from the US. So that doesn't help either. And then for some strange reason, even after all the big banks, big tech companies reported quite good reports, for some strange reason, people are still skeptical about what's going on right now. So, I mean, it is what it is. It is what it is.

>> Jose, any thoughts on this red on the crypto market? Red, not really. Um, just in some of the high growth AI infrastructure needs that we did see today, I would I would say I did get my toes a little wet today. uh nothing too crazy but I I took a bit of an opportunity uh in certain players like Cororeweave and Nebu. So uh long-term still super excited bullish long-term trend for the AI infrastructure space. Uh shortterm the volatility is uh I forget the quote the fee we pay for for this great ride here in the stock market.

>> Yeah. And look I mean my take on this is we had an incredible October. People forget we were up two and a half% in October. That's a massive move. six month six month in a row in 2025 of being green and so potentially consolidating some of those gains getting a bit of a sell-off. You might have some CTAs uh also unloading if they went max long over the past couple months. So I mean I don't think there's a a national headline that anyone can point to outside of the fact that we do have elections today. Maybe that's causing some of the volatility but it's not like Trump tweeted about soybeans and the market selling off. So this really might be just one of those days where you have to uh hold your nose by the dip and kind of keep it going from there.

Um AMD, let's get into it. AMD will be out at 4:15, guys. So, we have about 25 minutes. As soon as the market closes, I will get through all the other earnings because we got a lot of other companies and I'll put a pump or dump poll for AMD in the chat. Street wants a $1.17 of EPS, revenue of 8.75 billion. Neil, I'll get started with you. Uh, the reason this stock moved from 150 to 250, I think objectively is this OpenAI partnership. What do you think Lisa Sue needs to talk about today in order to continue having that multiple?

>> Yeah. So the of course the big jump I think you can see this on the on the chart is of course after that huge open AAI AMD deal which again I know a lot of people have questions myself included where do they get the money from. I'm not going to ask that question cuz maybe Sam will get angry and tell me if you don't want your shares you can sell them. I will find you a buyer. Well jokes on you Sam. I don't have any shares to sell. So there you go.

>> You showed him Neil. you showed him.

>> But yeah, I mean what I want to hear is I I I spoke with Jose this morning. What I want to hear is an actual AI revenue guidance because it has always been oh we we are seeing some growth etc etc. We expect this business to be generating tens of billions of dollars for us. I'm like okay cool but I mean we are already in Q3 so you might as well tell us what you are expecting for the full year. We know that the big impact is going to be 2026 and onwards, but I'd like I'd like maybe a number for for guidance for this year and then maybe maybe some color on how fast they can ramp up the MI450 series uh next year for OpenAI also for Oracle as well because Oracle is also a big a big client of theirs. Um I do think that the other side right client side gaming and embedded are all going to do quite well. So I'm expecting a very very easy beat for this quarter.

>> Okay, Jose, what are you expecting getting us? And do do you think do you think guidance has to go a lot higher to kind of make sense of this OpenAI potential revenue?

>> I I mean in theory it does, but we have to remember that the MI450, which is a lot of what the contract is coming from, the OpenAI is not expected to be released until 2026, in the second half of 2026. So in theory shouldn't really impact like guidance for next quarter. Now I I I talked with Neo earlier today and I was like every quarter there's a question that's the question to ask this quarter. When the deepseek moment happened it was all about the deepseek space. Then we kind of had that question about Microsoft slowing down in data center. Um and and that was the question asked on all major players on all chip companies. I think the question for these earnings for semiconductor companies that still haven't reported like AMD, like Broadcom, like Marvel, like Nvidia is going to be how is Open AI going to pay it. That's the question that they're all going to be focusing on. And I don't think any of them are going to have a right answer. So, I don't know if the market is going to like that.

Overall though, in the short term, so long term, I'm very bullish on the stock. I believe the OpenAI deal, the Oracle massive deal is a opportunity for this to be a trillion dollar company, not a guaranteed. Um, but in the short term, we did get some great insight from TSMC and Intel that reported earnings. TSMC continues to see strong demand in AI accelerators and kind of the high performance computing which typically involves consumer GPUs and CPUs which uh AMD plays in. The second thing, Intel also reported that they were supply constraint in both the server side and the consumer side. And Intel is one that's losing market share overall right now and their supply constraint. I can't imagine what's happening with AMD who is right now the tech leader. Um, what type of growth they're seeing. So, um, shortterm I'm excited. The question is how much of that excitement has been priced in, but long term very, very bullish on the company.

>> Do you think a lot of it has been priced in? I mean the stock jumped from 300 billion market cap to nearly 500 billion. I I I think what are we close to 400 and something? Um I think a lot has been priced in and I hope Lisa uh does take a little bit more aggressive approach than she usually does. Um if not short term could be crazy but I think the long term the opportunity is still there.

>> I think that's fair. I agree. I think she needs a Larry Ellison type of quarter and that Larry Ellison type of quarter would mean to increase remaining performance obligations because as you said the revenue can't be collected until latest Q3 2026 or sorry earliest Q3. So it's like if you can't give the street a number of revenue today you can give them the expectation of revenue and the street has heavily rewarded companies that have been able to show the expectation of this AMD revenue eventually coming. That's what Amazon got yesterday in their deal as well. So Neil, I would imagine you think that guide it just has to be strong because if they don't have that guide and they come up with 14% growth, which I don't think it will be 14% like it was last quarter based on TSM earnings as as Jose said, then the stock's probably not going to do the best.

>> Yeah. Plus the biggest hit from that China non-existing business anymore is behind us. The biggest hit for that uh is behind us. But yeah, guidance is important. Again I don't think we should be focusing on on what like an Oracle's RPO again the RPO are not contracted secured revenue so that huge number might also never happen I mean remains to be seen that's that's a big uh question mark but with AMD yeah guidance actual number for guy because guidance has been given without an actual number like okay we expect to grow double what is it high double digit or strong double digit I mean me and Jose were trying to decrypt this this thing this can go from 20% all the way to 90%. That's strong and high double digits. We don't know what that is. It's like the oh tens of billions of dollars. I'm like, okay, but for a fiscal year, is that $10 billion, 12, 15, 16? Maybe give us a number, especially for this year because you're already towards the end of the of their fiscal year. So, might be easier for them to project something. But, uh, they like to play it safe. But yeah, when you are, again, it's not their fault that they're trading at a premium, but for investors, yes, when you are trading at at a premium, you would like the management to actually be maybe a bit clearer or a bit more aggressive, let's say.

Agree. That's a fair point. We do have a lot of option premium coming in on puts on AMD as well. 242 strike, 2.5 million in OTM puts. I mean, at this point, when the market's dumping, you're obviously going to go get a lot of traders and people that are hedging their long AMD positions with a bunch of puts to protect to protect themselves. So, the implied move, does anyone know the implied? I think it's about 8.4%.

>> Yeah, we did. We checked this morning 8.4 8.3. So, it can Jose um I think it goes all the way. Yeah, 230 and 271 based on the price of right now.

All right, there you go. 230 or 271. We will keep an eye on it. We got three minutes until this market closes. We got a bunch of other macro headlines that we'll talk about after the earnings. Uh, one thing that I did see today going in line with this argument about the labor market, American Airlines will be cutting hundreds of corporate jobs as per Bloomberg that was announced today. So again, a lot of these jobs are happening in the uh white collar space, aka middle management jobs that some people may argue are typically more bureaucratic. Um, and potentially that's happening because of AI. I don't know the exact reason from American Airlines, but we are seeing a bit more of a trend on this. That might also be a reason why we're seeing a little bit of a sell-off,

but quite frankly, as as as uh Neil said, we don't have data. So we were supposed to get jolts this morning. We don't have that data. It's delayed because the government shut down. You had a couple senators coming out today saying that government shutdown maybe will be resolved by the end of the week. But I mean the market can only ignore the shutdown for so long. At some point it starts having a tangible effect and it starts having a psychological effect of like hey how is the labor market doing? Well we don't know. It's like okay well how are we supposed to allocate our capital if we don't know and hopefully that gets resolved by the end of the year or at least the end of the week to get a better understanding of it.

AMD 250 dumping into the close. Uh, we got two minutes left. Neil and Jose, pump or dump? What would you guess?

>> I'd go with we go to 230. I'd go we go to 230. So, we're down. We're going down the 8%. Well, Jose, you have to take the other side now.

>> Yeah, I was going to say I hate Neil with my whole life. So, um, I'm going to go with the opposite side.

>> No, no, no. You both can go dump and then I'll go pump and be the crowd favorite against the two AMD bulls. I actually like that scenario way better to be honest.

>> Works for me. Works for me. If it goes up, I make money. If it goes down, I'm right. So,

>> it's actually that's literally the best situation. Uh, it's literally 50/50 as you guys can see on the screen right there. 50% pump, 50% dump.

We are going to find out. We are going to find out today. So, thank you everybody for being here. We got 15 minutes until AMD. We have a lot of companies until AMD. I will get through all the numbers here. get you guys our raw reactions and then once we get AMD uh we are going to get into it and we will be listening to the call I believe at 5:00 PM Eastern. So if you want to stick around for the call, we will be listening to that today as well.

All right, folks. Here we go. Ugly day in the markets. This is the start to November. Nonetheless, we've had a really good year. A lot of gains. Looks like we are consolidating it into a choppy start for November, but we're going to see what earnings these companies can put up. Thank you everybody for being here. Tuesday, November 4th, 4 p.m. The stock market is now closed.

Ding ding ding ding bong.

>> What' you say?

>> We don't own a bell like you, so we do the sounds with our voice.

>> Ding ding.

>> Oh goodness. Okay, that that's even more effort than the bell. All right, AMD down 3.7% on the day. S&P down 1.16. Nvidia down 3.8. Nvidia lost about 150 billion in market cap. Tesla down 5%. By the way, lots of controversy today around investors in the Tesla community. Some very influential investors saying they're going to leave Schwab because of how Schwab is acting, voting against the board for Elon's pay package. Even Vlad, the Robinet CEO, commented today saying that we might give Tesla investors a match for coming over to Robinet.

>> The genius marketing move.

>> Absolutely genius move. But it goes to show how much demand there might be. And if Robinet does give two or 3% to leave Schwab to just bring over your Tesla shares. I mean, that could be a really big deal for Robin Hood and obviously very good for Tesla investors if they don't want to stay with an organization voting against the board. Tesla right there down about 5% today. Robin Hood down 7%. Palant here after one of the best quarters I've ever seen from a stock market company in in history as a public market company down 8% on the day. Grab right here did get a little recovery towards the end of the day. It was at 536 now at 580 but still down four and a half%. Google down 2%. So down 4%, AMD down 4%, Reddit down 8%, Amazon down 2%, Meta down 2%, Salesforce down three, PayPal down three, ELF down two, SMCI down six, Ethereum down 11, and then Bitcoin down 5.8% on the day. Apploven down three, Circle down five. I mean, it was a blood bath pretty much everywhere you went and it was just one of those days that everyone had to deal with. Here was the heat map to end out the day. Healthcare was green, financials were green, consumer defenses were green. Pretty much everything else in tech, uh, software semis, etc. Those were red on the day.

All right, earnings. Let's get into it. So, we got a lot of different companies. Uh, SMCI, Rivian, Cava, Zeta, Upstar, Pinterest, AET, Axon, Tempest, Toast, Kratos. I will be looking for the numbers as soon as we can get them.

>> Ster Labs, I think, is another popular one does reporting today.

>> That is ALAB, right? Okay, let me pull that up. Yep, ALAB. And then we'll get into it. So, let's see if we get any numbers that are coming out yet. Again, AMD is going to be in about 15 minutes.

>> Think Tempest is maybe out. Maybe.

>> Okay. Yep. Tempest. Here you go. Beat by 40% on EPS. Street thought they would lose 18 cents. They ended up losing 11 cents. uh 334 versus 328 million. Revenue is up 85% year-over-year. EPS is up 56%. Tempest after hours relatively flat, not really making a move. But again, you are seeing companies continue to be on the top of the bottom line. Axon, they missed by 24% on EPS. 117 versus 154, 710 million versus 704. So they beat by revenue, missed on EPS. Axon looks like it's heading down after hours. Axon is wow down 7.9%. Yeah, Axon's getting hit. Axon is getting hit. Missed by EPS by a wide margin. The stock was up a lot this year. That tends to create some pain. So, Axon, that's down.

SMCI is that out yet? SMCI don't have it yet. We have Amgen, they beat by 13% on EPS, beat by 7% on revenue. Not too bad for them. I think a politician also bought the stock recently. Amgen's actually up after hours. So, that one getting a little bit of a move right there on Amgen. Uh, but that but some of these other names are still down. Don't have AMD yet. SMCI still don't have that yet either. Tempest is down it looks like. Let me see if we have earnings. We do have earnings. Oh, yeah. We just just said it beat by 39%. Tempest after hours is down.

>> Is down 7%. Yep. So, down 12% for the day. So, that one is indeed getting hit.

>> okay. So, let's see some of the other ones. So, Tempest beat on the top and bottom. That's down 7%. Axon missed by 24%, beat by 1% on revenue. That's down 7%. Amjen beat on the top and the bottom. Uh, Skyworks beat by 15% on EPS and beat by 5% on revenues. So, you got Skyworks right there, 176 versus 153, 1.1 versus 1.05. EPS is up 14% year-over-year. revenue is up 7% yearover-year. Skyworks, which was during the day, red getting a little bit of green after hours. Skyworks is up about half a percent. After hours, but still red.

Zeta Zeta is not out yet. Uh, still looking for that one. Don't see it yet. AMD again is going to be in a second. Kratos I don't have yet.

>> Caribbean just reported. I don't know if you're covering that one. Yes. Let me see if I can get Rivian's numbers. Yep. Okay. Rivian, they missed by 12%. Beat by 3% on revenue. Uh revenue is up 78% year-over-year. EPS is up 11% year-over-year. That's a pretty ugly miss on the top line. Rivian's flat after hours, not really making a move. They are still not gap profitable. I think, you know, I think the gross profits I think they have, not gap profits. Maybe that's a 2026 thing, but you got to look under the hood for Rivian to see if they do have any level of increased operating leverage for profitability. Rivian going a little green after hours, but still relatively red. SMCI is moving.

>> Zeta is moving on the way up as well.

>> Yeah, Zeta is going green. Zeta's going real green. Okay, Zeta uh 7% move on Zeta to the upside touching 18. SMCI. I also think we have the results. Uh, super Whoa, boy. Ugly. SMCI missed by 10% on EPS, missed by 13% on revenue. Yep. SMCI is tanking.

>> Yeah, but wasn't that like the the preliminary results that they gave us two two weeks ago or something?

>> What analyst didn't project correctly after they gave us the number? They should get those guys fired.

>> No, you're right. Everyone knew these numbers. They SMCI flat out said it. So the fact that the stock is still going down on this is just hilarious. That's a nasty dump though, dude. 43. That's down 8%.

>> Last time it's also the investors like ah no they're lying to us. It's really like 5.8 that they're they're just trying to trick us right now.

>> Yeah, it's quite incredible. Last time we were at 43 was October 3rd, so about a month ago. And the time before that was August 5th. So realistically, it's getting back to levels that it hasn't seen in a couple months. But SMCI also tends to rebound pretty quickly. So you might have some people coming in and buying the dip. AMD right here, still 249. We got about 8 minutes until those earnings come out. Pinterest. Uh this is Oh my goodness. What is going on with Pinterest? Oh my 13% down. That's a little ugly.

Um, Pinterest, I don't have their numbers yet. No. Do I? Yes. Fourth quarter revenue 1.3 to 1.34 billion on their estimates. Monthly active users 600 million. I'll get the top and the bottom line in a second, but Pinterest is down. Arista beat by 6%, beat by 2%. EPS beat 75 versus 71. Revenue 2.3 versus 2.2. Arista are removing. That's ticker symbol AET. They are down 12% on a double beat. It's a little ugly, but nonetheless, you're getting a pretty ug nasty move right there. Goodness gracious. Again, this is just a horrible day to report for any company, but still. Then you have Astera. They beat by 26%. 49 cents versus 39 cents expected. Revenue 230 versus 206. Alab, that stock is up.

>> Yeah, that one's green.

>> Okay.

>> Very nice. So ALAB's up six, Arista's down 13.

>> Uh I was just looking really quickly at Super Micro. I mean, even though they only did 5 billion this quarter, they did guide for about 10 to 11 billion. I wonder if the market's just like, "Don't lie to me. You're going to tell us 10 to 11 billion, but then preliminary results, you're going to give us some other number a week before earnings." But they they gave some nice strong guidance for quarter 2 and they expect about 36 billion for 2026. So, uh, if those numbers are true, it it looks pretty cool.

>> Yeah. And their fiscal year, their fiscal year stayed relatively the same for what analysts expected, even if the the quarterly revenues changed.

>> I mean, two quarters ago, this fiscal year was supposed to be $40 billion, and now it's 36. That's a small four billion, 10% less. We'll give them that. We'll give them that. As long as they file on time, should be fine.

>> Yeah, you got to give up four billion for for proper accounting, I guess, is the is the trade-off. Uh Zeta right here crushed it. 20 cents versus 18 cents. That's an 11% beat. Uh revenue 337 versus 325. I mean Zeta, I don't know enough about this company, but I know a lot of people on X are fond of it as a digital analytics marketing advertising play. Uh did touch 18. Stock is now back to 1695. So really not making too much of a move. Up about 1%. It was up a bit more. Uh but that's flat. Upstart I think is making a move higher. Upstart is up4%. Not a big move, but it is a move. Uh, don't have their numbers. Oh, no. I do. Beat by 24% on EPS. Missed by 1% on revenue. 52 versus 42 on EPS. That's decent. Not bad at all. Revenues up 71% year-over-year. They missed by 1%. Upstart basically flat after hours.

We also have Pinterest officially. Pinterest. Oh, that's ugly. missed by 10% on EPS. As a tech company, especially with good margins like Pinterest and the advertising space, if you're missing on EPS, you're not going to give investors a lot of confidence, especially in the age of AI. Uh 10% miss right there. 38 cents versus 42, 1.049 versus 1.05 billion. The revenue miss is inconsequential, but the EPS miss probably is not the best. That's why that stock's down about 10%, never mind almost 15% after hours for Pinterest.

>> Do people still even use Pinterest?

>> I mean, I never used it, but I don't think I was the demographic for it.

>> Yeah, they have about five using it.

>> Nope.

>> I mean, they have about 570 million monthly activives. They're expecting 600 million in Q4. So, I mean, there are a decent chunk of people that use it. And theoretically, it should be one of the best advertising platforms out there because like you have the intent to buy when you're like pinning stuff to your board, but still that one getting hit. Rivian right here is making a bit of a recovery after hours. Uh Rivian now 3.4%. It was down during the day by about 5%. So a lot of these stocks that are getting any level of move after hours, they're they're kind of just inching away at some of the red they had during the day. ALAB getting some of the green and then I don't know why AET is down this badly on a double beat.

>> I'm seeing chat um apps I forget what is that digital turbine. No, what is stock is that? Apps also report it and up a nice amount.

>> I think you're right. It's apps is a digital turbine that is up. Yes. I don't have their numbers but that stock is up. I do have the numbers for Cababa, which I still haven't tried yet. And there's one near me, but I just haven't gone there. Beat by 8% or missed by 8% on EPS, 12 cents versus 13 cents expected. And then 292 versus 291. Revenues up 20% year-over-year. EPS is down 8% year-over-year, which is not that pretty. Cava is basically flat after hours, down about.3%. Did Cava drop after Chipotle? I feel like they're kind of similar price. Maybe Cava is a little bit more expensive, but I know Chipotle took a huge hit. Um, so I wonder if the market was just already expecting something here.

>> Yeah, I mean Cabba did Cava was turning at 140 at one point. Now it's at 50. So I mean it definitely took a hit over the past year, but maybe not getting that same Chipotle reaction. Let's get a little bit more coverage on Pinterest and Cava and then we'll keep going from there. We got AMD in about three minutes, folks.

>> Just finishing the day lower. We've got Pinterest earnings out as well. That stock falling big here in after hours. The company missing on EPS coming in at 36 cents a share. That's versus estimates of 42 cents per share. The company matching on revenue. Pinterest reporting an all-time high of 600 million global monthly active users. That's an increase of 12% year-over-year. Uh the 600 million was above estimates. Nonetheless, though, those shares are falling 14% right now.

>> All right. And Cabba earnings also out. That stock's been bouncing around quite a bit about the flatline. Kate Rogers has the numbers. Kate.

>> same thing Chipotle said, you're seeing some pressure on the consumer in these restaurants."

that the forecast reflected that as well as the investments we believe are necessary to run the business and the trends we saw in the third quarter particularly around restaurant level margins toolvar also adding there are pressures rather around the younger consumer which we also saw remember in Chipotle it's less exposed though to the low-income consumer but she said they are seeing same store sales strength from that group guys back over to you

>> all right AMD folks that was Cava this is the moment Let's see if Lisa can save the after hours AMD 24970. Uh based on the poll in the chat, it is officially 5050. Still 50% pump, 50% dump.

And Jose leaves because he is so afraid of these results.

>> Maybe he should come. I had 57 pump, 43 dump. Maybe now he's he's going to come back. I don't know how that works. Jose, I know it's your second largest position. I know you're scared, but Oh my goodness.

>> I was in a refresh on the wrong tab.

>> No, you left because you didn't want to see the dump. And it's dumping. We Let's see if it stays dumping, though. Let's see. It could it could it could reverse. We've seen this happen many times. But you do have Oh, there there's the reversal. Wow. There is the reversal. 242 to 250. Oh my. Now back down to 246.

>> So, do I call the wife or not? What do I do?

>> Exactly. Exactly.

All right, here we go. Beat by 3%, beat by 6%. 120 versus 117, 9.24 versus 8.75. That is a double beat, folks. EPS up 30% year-over-year. Revenues up 36%. Year-over-year.

>> Easy.

>> stock is kind of flat to green now. It's going a bit more green. 253. The initial dump recovered, but it's staying stuck at that 248 250 level. I'll pull up their actual website and we'll go deeper into the numbers, but I mean

>> billion. Let me see what what I had here for.

>> I mean, great beat on revenue there. I'm pretty excited about that. Um I see the strong guidance. Excuse me. So, I just want to see what I'm comparing it to with my numbers.

>> Yeah, I'll read this the press release and then we'll get your thoughts on it. So, Lisa Sue, we delivered an outstanding quarter with record revenue and profitability reflecting broad-based demand for our high performance EPYC and Ryzen processors and instinct AI accelerators. Our record third quarter performance and strong fourth quarter guidance makes a clear step up in our growth trajectory as our expanding compute franchise and a rapidly expanding data center AI business drive significant revenue and earnings growth.

We delivered record quarterly revenue of 9.2 2 billion, up 36% year-over-year, generating free cash flow, reflecting the strength of our leadership portfolio and disciplined execution. Our continued investments in AI and high performance computing are driving significant growth and position AMD to deliver long-term value creation. Again, revenue is up 36% year-over-year. Gross profits up 40%, margins are up 2%, 50 to 52, net income is up 61%, 771 million to 1.2 billion.

Um, Q4 guidance I'll get in a second. data center revenue accelerated from 14 to 22. That is not bad. Uh below 20 I think was the fear. It's above 20 22%. AMD stock right here still up a little bit at 252.

>> Um Q4 9.6 billion plus or minus 300 million. So 9.3 to 9.9.

>> That's what the market was expecting. They were expecting about 9.6 billion at at midpoint. Um, overall, I mean, I think shortterm is great. Uh, obviously the long-term opportunity is still with the MI450, um, which like they mentioned is the second half of 2026. So, would love to hear some commentary in there and hopefully Lisa Sue tells us something about it.

>> Yeah, I mean, this isn't a bad earnings on the top line. Jose, uh, Neil, any raw reactions to these numbers?

>> No, so far so good. I mean, if you look at the climb and gaming segment, that's also $4 billion, and that's up 73% year-over-year. Client is $2.8 billion out of the four. That's up 46% year-over-year. Um, gaming was up 181. That's a segment that was facing plenty of headwinds. Now, as we've seen last quarter, we've seen that also with Nvidia, some some tailwinds right there. And Embedded seems to still be a business with some headwinds. that was on 8% year-over-year, but that's one with very very high margin uh margin. So, all in all, I'm not surprised that we're above $9 billion. I think Jose myself talked about this morning for the guidance. Again, it's guidance as expected by the market, which probably means they beat it. Uh which probably means they beat it again. Um because they've been beating it quite easily. Quite easily.

>> Yeah. The other thing I'm seeing here is gross margins is staying at a 54% rate. um same place as same time last year and if you add back kind of the expense they had last quarter with the China's still 54%. So it's giving you some indication that while they're selling more they're not selling it at a like at a cheaper price to kind of get that revenue that revenue is staying them with the consistent pricing that they have. So overall still pretty bullish in my opinion for long-term opportunity for AMD. So as a AMD shareholder I I I don't think there's anything scarier so far from what we're looking at. I was just going to ask, do you see any red flags? And I don't think you do, especially with gross mortgages, right?

>> free cash flow was also quite good. Free cash flow for the quarter 1.5 billion. Last quarter was 1.1. Um same quarter last year was barely 496 million.

>> By the way, it's 13F season and Amazon has disclosed their 13F. We should be getting most of them in the next two weeks. They have sold out of NQ and AMD.

>> Yeah, I figured they would have sold out of that one.

>> Oo NQ and AMD, they no longer hold. They still have Marll, Astera, a biotech, Owlet, Rivian, obviously Smart Trend and Vital Farms, but AMD and OQ they are out of.

Okay. So, I mean, this is like I mean, the stock reaction is flat, which of course it's going to go flat on a day where everyone's anticipating either 230 or 270, but I think look, if you're an AMD shareholder, you can't be that upset, right? I mean, um, you're you probably bought this stock below 250 for the most.

>> I hope so.

>> Yeah, I hope so. And and right, it's like the market's confirming, look, with these earnings, we're going to give you the price of after that open AI deal. So, it's uh um yeah, I think pretty exciting and I hope we get a lot more information during the earnings call.

>> I think you've got to be ecstatic if you're an AMD shareholder. The stock went from 150 to 250. It's holding its multiple. It's not falling. Yeah. Maybe it's not for for now. It's not a Yeah, it's not a 267.

>> It's not, you know, it's not like it's back down to 180.

>> Yeah. No, I mean I mean if we look free cash flow margin to for the quarter is 17%, this time last year that was barely 7%. So they're growing. Free cash flow margin is expanding. Um so yeah, I I'm happy. We'll see what what the call brings cuz I'm pretty sure this stock will move when Lisa Sutto talks or uh our friend Jean will start talking and maybe the usual thing happens is uh stock goes down a little bit. But we'll see. We'll see.

>> Also, the entire market is dumping today. So, and a lot of stocks are getting destroyed after hours. So, the fact that AMD is relatively stable. Also, not the worst thing in the world.

>> Stock is down about 6% earnings at 35 cents a share compared to an estimate of 40 cents. Also a miss on revenue 5 billion versus the estimate of nearly 6 billion. Second quarter EPS outlook also coming in below estimates, but the company says it has a rapidly expanding order book, including $13 billion in Blackwell Ultra orders. AMD earnings out as well, staying an AI infrastructure earnings of a $120 per share, slightly ahead of the estimate. You see it's up flractionally revenue of $9.25 billion also topping the estimate. That's helped by better thanex expected data center revenue. also seeing Q4 revenue above the consensus. CEO Lisa Sue crediting the rapidly growing data center business.

>> Thank you, Matt, and good afternoon to all those listening today. We delivered an outstanding quarter with record revenue and profitability reflecting broad-based demand across our data center AI server and PC businesses. Revenue grew 36% year-over-year to 9.2 billion. Net income rose 31% and free cash flow more than tripled, led by record Epic, Ryzen, and Instinct processor sales.

Our record third quarter performance marks a clear step up in our growth trajectory as the combination of our expanding compute franchise and rapidly scaling data center AI business drive significant revenue and earnings growth.

Turning to our segments, data center segment revenue increased 22% year-over-year to a record 4.3 billion, led by the ramp of our Instinct MI350 series GPUs and server share gains. Server CPU revenue reached an all-time high as adoption of fifth gen Epic turn processors accelerated rapidly, accounting for nearly half of overall Epic revenue in the quarter. Sales of our prior generation Epic processors were also very robust in the quarter, reflecting their strong competitive positioning across a wide range of workloads.

In cloud, we had record sales as hyperscalers expanded Epic CPU deployments to power both their own firstparty services and public cloud offerings. Hyperscalers launched more than 160 Epic powered instances in the quarter, including new turn offerings from Google, Microsoft Azure, Alibaba, and others that deliver unmatched performance and price performance across a wide range of workloads. There are now more than 1,350 public Epic cloud instances available globally, a nearly 50% increase from a year ago.

Looking ahead, we remain on track to launch our next generation 2nmter Venice processors in 2026. Venice silicon is in the labs and performing very well, delivering substantial gains in performance, efficiency, and compute density. Customer pull and engagement for Venice are the strongest we have seen, reflecting our competitive positioning and the growing demand for more data center compute. Multiple cloud OEM partners have already brought their first Venice platforms online, setting the stage for broad solution availability and cloud deployments at launch.

Turning to data center AI, our Instinct GPU business continues to accelerate. Revenue grew year-over-year, driven by the sharp ramp of MI350 series GPU sales and broader MI300 series deployments. Multiple MI350 series deployments are underway with large cloud and AI providers with additional large-scale rollouts on track to ramp over the coming quarters.

Looking ahead, our data center AI business is entering its next phase of growth with customer momentum building rapidly ahead of the launch of our nextgen MI400 series accelerators and Helios Rockcale solutions in 2026. The MI400 series combines a new compute engine with industry-leading memory capacity and advanced networking capabilities to deliver a major leap in performance for the most demanding AI training and inference workloads.

On the customer front, we announced a comprehensive multi-year agreement with OpenAI to deploy 6 gawatts of Instinct GPUs with the first gigawatt of MI450 series accelerators scheduled to start coming online in the second half of 2026. The partnership establishes AMD as a core compute provider for OpenAI and underscores the strength of our hardware, software, and full stack solutions strategy.

We expect this partnership will significantly accelerate our data center AI business with the potential to generate well over a hundred billion dollars in revenue over the next few years. Oracle announced they will also be a lead launch partner for the MI450 series, deploying tens of thousands of MI450 GPUs across Oracle cloud infrastructure beginning in 2026 and expanding through 2027 and beyond.

In summary, our AI business is entering a new phase of growth and is on a clear trajectory towards tens of billions in annual revenue in 2027 driven by our leadership rackcale solutions, expanding customer adoption, and an increasing number of large-scale global deployments. I look forward to providing more details on our data center AI growth plans at our financial analyst day next week.

Okay, that was AMD's Q3 2025 earnings call. Uh stock after hours still down, not as down as it was before, but 242 down from 250. Um I'll start with you Neil. What was your raw reaction to that call?

Well, unfortunately, I mean, from what I understood is again, we did not get that much extra needed information, but then again, we only have to wait one extra week to get a lot more information because there is that analyst day next week, which I don't know why they have to do this, but okay. Um, you have an earnings call. Why not already tell us something and then maybe expand more next week? Because in this case they there were some questions where they didn't really want to answer. So they were leaving that for next week which okay I guess fine we we'll wait we'll wait an extra week and then some specific question with regards to data center server site I mean the the back and forth there in the end I don't know maybe Jose maybe you got the answer but I did not really get an answer from from that uh from that whole back and forth question which I I can't remember what anal what's the name of the analyst but I'm pretty sure that three months ago he was trying to to get an answer on the a exact same question, Stacy. Yeah, exactly. Um, this is something I I

>> Can you Can you clarify, Neil? What What exactly was he trying to figure out when he went back and forth?

>> Which which business line was growing faster, right? Is was it the server side or um was which one was the other server and uh and data center?

>> Server. Yeah. No, he was just talking about server CPU or just the instant data center GPU. So, he was trying to find out which one was growing at a faster level. And then he did indicate I mean he tried to say the number that we all want the $6.5 billion which the $6.5 billion of so-called AI revenue for the year which is what his calculated calculations told him 3 months ago

>> which is very low very low because last year that exceeded $5 billion going into 2025 analysts had it at I think 121 12 billion that dropped to $8.4 billion after a quarter. And now if his numbers show 6.5, uh, that's really not that much, but apparently those numbers are not correct according to AMD's management. So hopefully they're not correct because they're going to be more. But, uh,

>> are you are you concerned at all that they didn't really give a direct answer to that or you didn't expect them to?

>> I'll be more concerned if next week I get zero answers from the analyst. They I'll tell you that much. But it's they did tell us that 2026 they are going to ramp ramp faster and they have no issues like no supply issues. So that should be that should be good. But again I think most of the big answers will be given next week unfortunately.

>> I mean I thought the call I didn't learn anything new. Right. I think the thesis is still intact where and that's not necessarily anything bad, right? I think the thesis is still intact that 2026 with the MI450 is going to be the really strong year for them. Um, even though many people might hate Stacy, it is a great question, right? I think I I don't mind someone being aggressive trying to get the right qu the right answers from AMD. Now, am I mad or do I seem or or um do I think it's bearish that they didn't answer? If I didn't know AMD and Lisa Sue like I do, I probably would, but they never give the answer to that. So, it's it's they're consistent with that. Um, now I agree with Neo that um they uh we have next week to get a lot more updates. Uh I'm hoping to see at least the TAM growth uh because that's what they really promised. put us outside of that. I don't know if they're going to give us any updates on the actual um on maybe any actual GPU numbers. Uh so again, I think for long-term investors, everything we knew, we didn't expect much growth into the 450s. The MI 355 seems to be doing okay. We're expected to see a nice revenue growth next quarter. We're expected to see heavy growth in 2027. They're going to give us luckily next week maybe more updates on the Open AI deal as well. Uh because it does seem like they gave that information. So um unfortunately it seems we have to wait another week to kind of get the right answers and like again I agree with Neil. I wish this is the earnings call. We're supposed to get that information from them. Uh but this is usually typical AMD stuff. They um whenever you have an event coming up in a a few weeks they're like oh we'll share a little bit more there uh maybe just to get some more views. um into that event,

>> but the pressure is on them now because yeah, they didn't want to share it now, they have to share it next week.

>> Yeah. And and I mean I I feel like Lisa Sue at least gave us the understanding that what they're going to release next week is going to be something bullish like the total addressable market. I based on how she talked, I'm expecting um from from her limited um excitement that she usually shares um I'm expecting TAM to increase. They gave us I forget 2028 was expected to be $500 billion I think was uh the last number I if they're not giving us the number for 2028 and they give us the number for 2029, I expect it to continue at some nice rapid compounded annual growth rate over time. So, while she didn't say much, I think she said at least be excited for next week.

>> Yeah. Cuz every time she talks about that number, which by the way, that number was $400 billion at first, right? And then it went to $500 billion. And every time she talks about that number, she always like Yeah. And some people think I'm too conservative with that number, which probably means she has some room to increase that number if she wants. Of course, she has to back it up with with her actual revenue. But if that open AI partnership does work out, that's a hundred billion dollars in revenue that they will make for the next couple of years. So I guess I guess there is money that should be coming in. But yeah, all in all, too long didn't watch the whole stream. Good report, good numbers.

>> See you next week.

>> Boring call because next week we have an actual analyst day with some good answers coming up.

All right, there you go. Thank you everybody for being here. That was AMD. I know the after hours markets is a bit bloody still. We did get a little bit of a crypto rebound, but obviously everything is still ugly. We do have a pretty big election tonight, so we're going to see what happens with that and that could have implications throughout the rest of the week. Bitcoin right there just above 101, which is nice given it was at 98 and then Ethereum almost below.

>> A nice rebound. Yeah.

>> Yeah, I mean at least holding the 3200 level is uh is not the worst thing in the world. Um there you go. That's what we got. Jose and Neil's YouTube, I'm putting in the chat, at least on my stream. So, please make sure to subscribe to them. Neil right there, Couch Investor. Uh I I cannot say how much I am a fan of their channels. I mean, I watch their videos. I put it on in the background. I listen to Neil's analysis in particular. still covers a variety of stocks. So, it is very encouraging to listen to a lot of different perspectives. And then Jose, if you care about semiconductors, that is the channel to listen to. Also, uh Neil, congrats on Micron, dude. That's uh

>> another one that hit.

>> Yeah, quite quite crazy. Quite crazy.

>> Yeah, I was asking in the chat the other day. I was like, who's been bullish micron? Everyone started spamming Neil. I was like, "Oh I remember you made a video back when that thing was like 80 bucks and you've been holding it pretty strong." So,

>> yeah. I mean, the narrative was always, "Oh, memory cyclical. Don't touch it." I'm like, "Yeah, okay." But I don't know about you, but data centers, GPUs, all of that. You got to need a lot of HBM and there are three main players and one of the three Samsung was very much behind. Micron was still doing very well. Plus, it's the only really US player. So,

Agree.

>> But thank you.

>> yeah. No, and that hitting all time high is incredible. And then Jose's newsletter right there, whatthe chipappen.com. You guys can subscribe to that. And I'm sure there's a lot of commentary that'll be coming pretty soon on uh AMD, I would imagine. Jose.

>> Yeah, but I don't think I'm sleeping tonight because I mean, we have AMD, Astero Lab, Super Micro, and I'm pretty sure I missed uh so many others that um so better go get some coffee and stay up all night.

All right, there we go. Thank you everybody. Deeply appreciate it. I'll be back tomorrow on the market open. We will cover everything else going on the market. And that's what we got for today. Thank you everybody. We will see you guys tomorrow.

Bye everyone. Have a good one.