AI Stocks on Edge as AMD Takes the Spotlight 04/11/2025

HOT stories for today

Market wrap:

• AI-driven stocks powered U.S. markets higher at the start of November, led by Amazon.com Inc., which jumped to a record close after announcing a partnership with OpenAI. The deal underscored Amazon’s growing ambitions in cloud-based AI and helped lift the Nasdaq Composite nearly 0.5%, while the S&P 500 added 0.2%. The Dow Jones Industrial Average underperformed, falling 226 points, or 0.5%, as cyclical shares lagged. Investors are bracing for a pivotal week of earnings, with more than a third of S&P 500 companies set to report following Berkshire Hathaway’s results.
• The momentum comes as the U.S. government shutdown stretches into its 34th day, matching the record for the longest on record, halting key economic data releases and clouding the macro outlook. Treasury yields held steady as traders weighed the potential fallout from the ongoing political standoff. Palantir Technologies Inc. slid despite raising its full-year guidance and touting AI-fueled growth. CEO Alex Karp highlighted rising enthusiasm among retail investors, but the stock retreated after a recent run-up. Bitcoin dropped 3.9% to about $106,400, breaking below its 200-day moving average of $109,800, with technical analysts eyeing the next support near $94,200. In Asia, markets traded mixed, with South Korea’s Kospi snapping a four-session rally as investors monitored global earnings and awaited fresh U.S. economic indicators, which the shutdown has stalled.

AMD Earnings Seen Solid; AI Outlook Mixed

• Wall Street expects a solid third quarter from Advanced Micro Devices Inc., with strength in non-AI chips offsetting softer sentiment around its AI business. Shares have surged since the company announced a multiyear partnership with OpenAI, but analysts say near-term GPU demand looks steady rather than explosive. Morgan Stanley’s Joseph Moore sees “meaningful” growth through year-end as AMD ramps its Instinct MI355 line, set for Amazon deployment later this year, but warns of “more selective purchasing” amid tight supply and Nvidia’s ongoing platform improvements. The firm’s next-generation MI450 series and rack-scale Helios system, launching in 2025, are seen as critical to AMD’s long-term AI ambitions. 
• UBS expects data-center GPU revenue to rise from $6.5 billion this year to $14 billion in 2026, doubling again in 2027, fueled by OpenAI’s deployment. Still, analyst Timothy Arcuri notes that customers are pausing MI355x orders as they await newer chips and weigh ASIC alternatives, especially at hyperscalers like Microsoft. AMD is forecast to post Q3 revenue of $8.8 billion and adjusted earnings of $1.17 per share, with the data-center and AI segments contributing $2.4 billion and $1.7 billion, respectively. Analysts see $9.2 billion in Q4 sales and $1.32 per share in earnings. While optimism over its OpenAI deal remains high, both firms caution that execution and a convincing MI450 rollout will determine whether AMD can close the gap with Nvidia.

Stocks on the move:

• Palantir Technologies (PLTR): Shares rose 1% in extended trading after the software company topped Wall Street estimates, with government sales up 52% year over year. Palantir reported adjusted earnings of 21 cents per share on revenue of $1.18 billion, beating analyst forecasts of 17 cents and $1.09 billion. The company also issued upbeat fourth-quarter guidance as its AI-driven commercial business continues to expand.
• Vertex Pharmaceuticals (VRTX): The stock fell 4% after mixed third-quarter results. Vertex posted adjusted earnings of $4.80 per share on revenue of $3.08 billion. While profit missed the $4.58 consensus estimate, revenue slightly topped forecasts of $3.06 billion.
• Diamondback Energy (FANG): Shares slipped 2% in after-hours trading after the company announced plans to sell Viper Energy’s non-Permian assets for $670 million, closing in early 2026. Diamondback reported adjusted earnings of $3.08 per share on $3.92 billion in revenue, topping estimates of $2.93 per share and $3.52 billion.
• Clorox (CLX): Shares rose more than 4% after first-quarter results beat expectations. Clorox earned 85 cents per share on $1.43 billion in revenue, ahead of estimates of 79 cents and $1.40 billion, and reaffirmed its full-year outlook.
• Hims & Hers Health (HIMS): The telehealth stock gained over 6% after reporting third-quarter revenue of $599 million, surpassing the $580 million consensus. Earnings came in at 6 cents per share, missing estimates of 10 cents, as subscriber growth and personalized treatments drove strong sales.

Watchlist: AMD, VRTX, CLX, HIMS, WMB, SHOP, UBER, SPOT, RACE

Key Economic Events Today:


no significant economic data



Earnings

BMO (Before Market Open): Shopify (SHOP), Uber Technologies (UBER), Eaton Corporation (ETN), Pfizer (PFE), Spotify (SPOT), Ferrari (RACE)
AMC (After Market Close): Advanced Micro Devices (AMD), Arista Networks (ANET), Amgen (AMGN)




The TEFS Analyst team wishes you a successful day!