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AMD shares lower despite Q3 beat
11/5/2025, 1:03:14 AM
Economic Summary
- AMD beat Wall Street estimates on both revenue and earnings, driven by stronger-than-expected data center revenue; CEO Lisa Su said that business is accelerating and the company guided Q4 revenue above Street estimates, signaling AI investments may be delivering (AMD).
- AMD recently signed a chip and equity deal with OpenAI, a development that helped drive a major rally and underpins investor optimism about AMD's AI growth prospects (AMD, OPENAI).
- Despite the revenue beat, AMD's gross margins were only in line for Q3 and Q4, which likely explains the after-hours slip despite AI optimism and guidance.
- Amazon liquidated an AMD stake worth just under $117 million after a 13F filing; Amazon says the shares resulted from a conversion of a stake in ZT Systems when AMD acquired that server maker, suggesting the sale was not a deliberate exit from an AMD position (AMZN, ZT SYSTEMS).
Bullish
- Stronger-than-expected data center revenue driving AMD's earnings beat.
- Chip and equity deal with OpenAI boosts AMD's AI growth narrative.
- AMD guided Q4 revenue above Street estimates, indicating accelerating momentum.
Bearish
- Gross margins were only in line for Q3 and Q4, limiting profitability upside.
- AMD trades at about 50x forward earnings, implying high valuation risk.
- Amazon's liquidation of its AMD stake triggered selling pressure.
Bullish tickers
AMDOPENAI
Bearish tickers
AMDAMZN
AMD
Bullish
Earnings beat driven by robust data center revenue, Q4 revenue guided above Street estimates, and a chip/equity deal with OpenAI supports AI growth.
Bearish
Gross margins only in line and the stock trades at a high multiple (~50x forward), and Amazon's liquidation added selling pressure.
AMZN
Bullish
Says AMD shares originated from a conversion of its ZT Systems stake, not a deliberate exit from AMD exposure.
Bearish
Liquidated an AMD stake worth roughly $117M, a filing that triggered AMD selling pressure.
OPENAI
Bullish
Entered a chip and equity deal with AMD, which helped drive investor optimism around AMD's AI prospects.
ZT SYSTEMS
Bullish
Manufacturer of servers used by AWS; its stake conversion into AMD shares explains Amazon's prior holding.
QUANTUMSOCK INQ
People mentioned
Mackenzie SigalosLisa SuMel