AMD Revenue Jumps 45%, Shares Rise 7%

AMD shares were up 7% in after-hours trading after the company reported third-quarter results above market estimates and forecast strong fourth-quarter revenue. Adjusted earnings per share were $2.09, exceeding the $1.95 estimate, while revenue reached $13.38 billion, above the $13.09 billion estimate and up 45% year over year. Data center revenue nearly doubled, growing from 47% of total revenue last year to 64%. CEO Lisa Su said data center processor growth should accelerate and that AMD could meet demand for AI chips. By contrast, PC and gaming chip revenue fell 8% to $3.7 billion, while gaming revenue plunged 40%. AMD projected fourth-quarter revenue of $17 billion, above the $16.2 billion market estimate, but forecast a 55% gross margin, below the 55.3% estimate.

Bloomberg reported that Mahoney Asset Management expects U.S. stocks could continue rising after the midterm elections. The Sevens Report found that the S&P 500 had not fallen in the 12 months after any midterm election since 1950. Some analysts described the recent pullback in technology stocks as a repricing of company valuations rather than evidence that the AI industry's growth prospects had weakened. Edward Jones said companies that prove AI-related revenue growth and fund further investment themselves are likely to receive higher valuations. The firm maintained its overweight recommendation on U.S. large- and mid-cap stocks, while identifying uncertainty about profitability from expanding AI investment as a risk.

Pershing Square CEO Bill Ackman told CNBC he was concerned about speculative stock trading and rising leverage. He said some share prices were difficult to explain by companies' actual value and likened the market to a casino from a period when leverage reached 95%. In his view, speculation funded by excessive borrowing creates extreme stock-price volatility. Distorted prices can offer long-term investors a chance to buy at low prices, he said, but are harmful to the economy and society overall. His warning came amid sharp swings in AI-related stocks.

Anthropic could pursue an initial public offering as early as the 16th, and JPMorgan, Goldman Sachs and three other major Wall Street banks have secured underwriting roles, Yahoo Finance reported. Evercore estimated that the IPO could lift the banks' fourth-quarter net income by an average of about 0.8%, with Goldman Sachs, Morgan Stanley and Citigroup expected to benefit most. Global investment banking deal activity fell 25% year over year in October. Anthropic's expected valuation has been cut from $2 trillion to $1.5 trillion-$1.6 trillion amid concerns about valuation pressure.

Reuters reported that SK Hynix requested U.S. export licenses for semiconductor equipment needed to expand its Dalian plant in China, but the Commerce Department has not approved them. The company reportedly plans to use profits from increased Chinese production to fund new factories in the United States. Its U.S. subsidiary, Solidigm, is pursuing a plan to invest about $45 billion in two NAND flash plants in New York state. The Commerce Department maintained at a meeting last week that it would not allow equipment exports for expanding production capacity or upgrading technology at the Chinese plant. Solidigm has held about 10 meetings with the department since late August and is also discussing licenses for equipment needed to operate its existing plant in 2027. Reuters said the White House's final decision matters because attracting investment to the United States conflicts with the policy goal of restricting technology transfers to China.

AMD shares were up 7% in after-hours trading after the company reported third-quarter results above market estimates and forecast strong fourth-quarter revenue. Adjusted earnings per share were $2.09, exceeding the $1.95 estimate, while revenue reached $13.38 billion, above the $13.09 billion estimate and up 45% year over year. Data center revenue nearly doubled, growing from 47% of total revenue last year to 64%. CEO Lisa Su said data center processor growth should accelerate and that AMD could meet demand for AI chips. By contrast, PC and gaming chip revenue fell 8% to $3.7 billion, while gaming revenue plunged 40%. AMD projected fourth-quarter revenue of $17 billion, above the $16.2 billion market estimate, but forecast a 55% gross margin, below the 55.3% estimate.

Bloomberg reported that Mahoney Asset Management expects U.S. stocks could continue rising after the midterm elections. The Sevens Report found that the S&P 500 had not fallen in the 12 months after any midterm election since 1950. Some analysts described the recent pullback in technology stocks as a repricing of company valuations rather than evidence that the AI industry's growth prospects had weakened. Edward Jones said companies that prove AI-related revenue growth and fund further investment themselves are likely to receive higher valuations. The firm maintained its overweight recommendation on U.S. large- and mid-cap stocks, while identifying uncertainty about profitability from expanding AI investment as a risk.

Pershing Square CEO Bill Ackman told CNBC he was concerned about speculative stock trading and rising leverage. He said some share prices were difficult to explain by companies' actual value and likened the market to a casino from a period when leverage reached 95%. In his view, speculation funded by excessive borrowing creates extreme stock-price volatility. Distorted prices can offer long-term investors a chance to buy at low prices, he said, but are harmful to the economy and society overall. His warning came amid sharp swings in AI-related stocks.

Anthropic could pursue an initial public offering as early as the 16th, and JPMorgan, Goldman Sachs and three other major Wall Street banks have secured underwriting roles, Yahoo Finance reported. Evercore estimated that the IPO could lift the banks' fourth-quarter net income by an average of about 0.8%, with Goldman Sachs, Morgan Stanley and Citigroup expected to benefit most. Global investment banking deal activity fell 25% year over year in October. Anthropic's expected valuation has been cut from $2 trillion to $1.5 trillion-$1.6 trillion amid concerns about valuation pressure.

Reuters reported that SK Hynix requested U.S. export licenses for semiconductor equipment needed to expand its Dalian plant in China, but the Commerce Department has not approved them. The company reportedly plans to use profits from increased Chinese production to fund new factories in the United States. Its U.S. subsidiary, Solidigm, is pursuing a plan to invest about $45 billion in two NAND flash plants in New York state. The Commerce Department maintained at a meeting last week that it would not allow equipment exports for expanding production capacity or upgrading technology at the Chinese plant. Solidigm has held about 10 meetings with the department since late August and is also discussing licenses for equipment needed to operate its existing plant in 2027. Reuters said the White House's final decision matters because attracting investment to the United States conflicts with the policy goal of restricting technology transfers to China.