AMD Q3 Revenue Exceeds Expectations, Shares Rise After Earnings

Article by: Tide Research

Chip stocks rebounded, pushing the Nasdaq up 0.83%, while the S&P 500 ended a three-day losing streak; Apple’s weaker gross margin guidance weighed on the Dow, which closed lower.

After hours, AMD reported Q3 revenue of $13.38 billion and Q4 revenue guidance of approximately $17 billion, both exceeding expectations, causing its stock to rise as much as 9%. Super Micro Computer and Arista Networks also surged sharply due to better-than-expected guidance.

After vote counting began for the midterm elections, markets bet that the Democratic Party would take control of Congress, causing stock index futures to turn from gains to losses.

On Tuesday, the S&P 500 rose 0.36% to close at 7,568.92, ending a three-day losing streak; the Nasdaq gained 0.83% to close at 25,372.01; the Dow Jones fell 0.38% to close at 51,786.72.

The Nasdaq 100 Index rose 0.68% to 28,180.26, remaining approximately 10% below its recent high and in a correction zone. The Russell 2000 increased 0.23% to 2,812.45. The VIX fell 1.51% to 20.83.

The index rise was primarily driven by a few large technology stocks. The semiconductor ETF (SMH) rose 2.01%, the technology sector (XLK) gained 1.31%, and communication services (XLC) increased 1.18%. Consumer staples (XLP) fell 2.07%, materials (XLB) dropped 2.01%, and seven out of eleven sectors closed lower. The equal-weight S&P 500 ETF (RSP) declined 0.33%.

Individually, AMD rose 3.65% to $483.90, Broadcom increased 3.07%, Microsoft gained 2.74%, and NVIDIA rose 2.29%. CoreWeave surged over 5% during intraday trading but has still declined approximately 41% over the past month.

AMD reported third-quarter earnings after hours. Revenue was $13.38 billion, a 45% year-over-year increase, exceeding LSEG’s forecast of $13.09 billion; adjusted earnings per share were $2.09, above the expected $1.95.

Data center revenue reached a record $8.5 billion, up 97% year-over-year, primarily driven by EPYC server processors and MI450 series GPUs. Client and gaming revenue was $3.7 billion, down 8% year-over-year, with gaming revenue declining 40%.

Q4 revenue guidance is approximately $17 billion (±3%), with the midpoint representing year-over-year growth of about 66% and quarter-over-quarter growth of about 27%, exceeding the market expectation of $16.23 billion. CEO Lisa Su stated on the earnings call that server revenue is expected to double year-over-year by 2027.

AMD rose as much as 9% after hours, then retreated alongside index futures, narrowing its gain to approximately 4%.

After hours, Super Micro Computer reported first-quarter revenue of $19.9 billion, exceeding the expected $16.26 billion, and raised its fiscal 2027 revenue guidance to $72 billion to $82 billion, sending its stock up over 9% in after-hours trading. Arista Networks issued fourth-quarter revenue guidance of $3.9 billion to $4.0 billion, above the expected $3.6 billion, driving its stock up approximately 12% after hours.

Skyworks' guidance for next quarter fell below expectations, causing a post-market decline of about 15%; Booking's revenue missed estimates, leading to a post-market drop of about 2%.

Apple fell about 1.9% to $331.82, primarily dragging down the Dow Jones Industrial Average.

Apple's September quarter revenue reached $114.48 billion, with earnings per share of $2.10, both exceeding expectations. However, the company forecasted a gross margin of 45% to 46% for the December quarter, below analysts' expectations of approximately 46.7% to 47.5%, primarily due to rising storage chip prices and investments in Siri AI features. iPad revenue stood at $6.23 billion, below expectations.

Apple expects revenue growth of 7% to 10% for the December quarter, with service revenue growth slowing to 8% to 9%. Morgan Stanley lowered its price target from $355 to $350, and JPMorgan reduced its target from $360 to $355.

Shopify fell 8.74% after reporting Q3 revenue of $3.74 billion, slightly below expectations, with subscription gross profit and GMV also missing forecasts. Gartner dropped 13.19% to $204.22, with Q3 contract value growth of only 2.5% and revenue declining 1.3%.

Coinbase rose about 8% during trading, after falling 15% over the previous three trading days.

Voting for the U.S. midterm elections took place on Tuesday. The Democrats need a net gain of four seats in the Senate and three seats in the House to secure control of both chambers. The Associated Press's first Senate result was the re-election of Democratic Senator Mark Warner from Virginia.

As voting continues to wrap up across states, prediction markets are betting on a decisive Democratic victory. As of 08:48 Beijing time today, the probability of Democratic control of the Senate on Kalshi has risen to approximately 90%, and the probability of control of the House is at 97%. Media outlets are still tallying key races.

Stock index futures turned from gains to losses. As of the same time, S&P 500 futures fell 0.6%, Nasdaq 100 futures dropped 0.5%, and Dow futures declined by 252 points. Microsoft and Amazon slipped in after-hours trading, while the solar energy ETF (TAN) continued to rise after hours.

JPMorgan previously stated that a Democratic sweep of both chambers could weigh on the broader market on Wednesday, with AI stocks under particular pressure; if Republicans retain the Senate or both chambers, it could lead to a short-term rally.

In early Asian trading, South Korea's KOSPI index opened 2.95% higher. Both the KOSPI and Taiwan Weighted Index fell 3.59% on Tuesday.

WTI crude oil fell 0.38% to close at $96.09 per barrel; Brent crude oil fell 1.12% to close at $103.60 per barrel. Both dropped approximately 7% on Monday and showed no rebound on Tuesday.

U.S. forces reportedly struck Iran's Qeshm Island, prompting Iran to vow a "strong" response, causing oil prices to rise overnight. Subsequent speculation about potential progress in U.S.-Iran negotiations then pushed oil prices lower again.

U.S. Treasury yields rise. The 10-year yield increases 5.8 basis points to 4.951%, the largest gain since September 28; the 2-year yield rises 3.1 basis points to 4.612%; the 30-year yield climbs 5.5 basis points to 5.323%. The U.S. Dollar Index rises 0.11% to 101.86.

On the data front, September JOLTS job openings rose to 7.52 million, an increase of 333,000 month-over-month and above the expected 7.15 million; quits rose to 3.36 million, the highest since March 2025; layoffs declined to 1.64 million. Factory orders increased by 1.8% month-over-month in September, exceeding the expected 1.3%.

Bitcoin is trading above $77,000.

All times are in Beijing Time.

All day: Vote counting for the midterm elections. Control of both chambers is today’s biggest variable for U.S. stocks, and vote counting in some key races may continue for several days.

21:15: U.S. October ADP Employment Report. In September, the ADP private sector added 90,000 jobs.

23:00: U.S. October ISM Non-Manufacturing PMI. September reading was 54.9.

Pre-market tonight: Uber, CVS Health, McDonald’s, and Datadog are reporting earnings. According to The Wall Street Journal, CVS plans to spin off its retail pharmacy business; shares rose slightly after hours.

Thursday morning (after US market close): Qualcomm, Arm, and AppLovin released earnings reports. Market expectations are for Qualcomm to report revenue of $10.12 billion and EPS of $2.16; Arm to report revenue of $1.38 billion and EPS of $0.47.

Friday, 21:30: U.S. Non-Farm Payrolls report for October. Market expectations: +59,000 new jobs, unemployment rate unchanged at 4.2%. September saw only +29,000 new jobs.