Advanced Micro Devices (AMD) posted strong quarterly results that beat expectations, which should change the market sentiment this morning.
The AI chip supplier posted revenue of $13.38 billion and non-GAAP EPS of $2.09 in Q3. Revenue growth of 45% benefited from Data center growth. Inference and agentic workloads will accelerate growth in Q4. In addition, the two acquisitions announced in the quarter will strengthen the firm’s “super intelligence” portfolio.
AMD has minor risks. PC sell-through slowed late in the quarter. Higher memory and component costs weighed on demand.
Super Micro Computer (SMCI) will bounce back from the low $31 range this morning. It posted Q1 non-GAAP EPS of $1.81. Revenue grew by 299% Y/Y to $19.95 billion. The company transformed into a Total AI and IT Data Center Solution provider.
SMCI continued to provide value for its customers through software, service, and networking solutions. Looking ahead, SMCI is expecting net sales in the range of $19.5 billion and $21.5 billion. For FY 2027, net sales are in the range of $72 billion to $82 billion.
Arista Networks (ANET) traded nearly 9% higher last night. It reported $1.20 in non-GAAP EPS. Revenue grew by 58.4% Y/Y to $3.66 billion. The strong revenue growth is at rates not seen since Arista first IPO’d.
ANET stock’s strength should lift its peers, which include Cisco Systems (CSCO), Broadcom (AVGO), and Astera Labs (ALAB).
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