Buy Hold Rant
AMD Q3 Earnings Analysis: Strong Revenue Growth, But Is Nvidia Still the Winner?
11/6/2025, 6:50:24 PM
Economic Summary
- AMD (AMD) reported revenue of $9.25B and EPS of $1.20, beating expectations (revenue beat ~5.8%, EPS beat ~10%), signaling solid operational execution.
- AMD's revenue growth is strong (mentioned ~32%) and its stock performance has been robust (up ~76% one-year, ~198% five-year), indicating improving investor sentiment.
- NVIDIA (NVDA) has outperformed over longer horizons (five-year gain cited ~1300%) and currently shows faster recent growth (~72% trailing 12 months) with a lower PE, making it the preferred market leader choice.
Bullish
- AMD beat revenue and EPS expectations and is executing consistently quarter-to-quarter.
- AMD's stock has strong momentum (up ~76% one-year) with a smaller run-up than NVDA.
- NVIDIA (NVDA) is the market leader with faster growth and a more attractive valuation.
Bearish
- AMD's valuation appears stretched (PE ~68, PS ~13) relative to fundamentals.
- AMD is a clear number-two to NVIDIA, raising competitive and market-share concerns.
- Recent strong price action could still spook investors and invite mean reversion.
Bullish tickers
AMDNVDA
Bearish tickers
AMD
AMD
Bullish
Beat revenue ($9.25B) and EPS ($1.20) expectations and showing consistent execution with strong recent stock performance.
Bearish
High PE (~68) and price/sales (~13); weaker market leadership versus NVIDIA could limit upside.
NVDA
Bullish
Market leader with faster recent growth (~72% TTM) and a comparatively more attractive valuation; preferred pick over AMD.
Bearish
Extremely large multi-year run-up (~1300% five-year) could limit future returns and raise mean-reversion risk.