CNBC Television
'Pause' in semi stocks after investors get nervous, says Bernstein's Stacy Rasgon
11/4/2025, 9:56:09 PM
Economic Summary
- AMD's upcoming results will be watched for core PC and server strength, plus commentary on the OpenAI ramp which is expected to materially impact results in ~1 year; analyst day on November 11 may reinforce that narrative (AMD).
- The broader semiconductor market is undergoing short-term consolidation after a strong run; some market participants are taking profits or stepping back from AI-focused positions, causing temporary pullbacks.
- Pricing pressures are visible on older-generation AI chips (Bloomberg tracker shows declines), but demand for new-generation processors remains robust with manufacturers selling essentially all available supply.
Bullish
- AMD benefiting from strong PC and server demand and Intel supply issues.
- New-generation AI chips retain pricing as demand outstrips supply.
- OpenAI partnership could drive a material ramp for AMD over the next year.
Bearish
- Semiconductor sector pausing after a large run, suggesting short-term consolidation.
- Older-generation chip pricing has weakened (e.g., Hopper trackers), pressuring margins.
- Near-term AI revenue for companies like AMD may remain lackluster before ramps.
Bullish tickers
AMDNVDA
Bearish tickers
NVDAAMD
AMD
Bullish
Strong PC and server markets, potential benefit from Intel supply constraints, and a long-term OpenAI ramp story.
Bearish
Near-term AI numbers could be lackluster and the OpenAI arrangement raised concerns about dilution or unconventional deal terms.
NVDA
Bullish
Extraordinary demand for new-generation chips; company selling essentially all available inventory, supporting pricing and sales.
Bearish
Some investors are stepping away from the AI trade and older-generation Hopper pricing has softened.
INTC
Bullish
Supply constraints may indirectly benefit competitors like AMD by limiting Intel's ability to serve demand.
Bearish
Bizarre supply constraints referenced, creating uncertainty in competitive dynamics.
People mentioned
Stacey