Markets
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Luke Kawa

AMD posts top- and bottom-line beat in Q3 with Q4 sales guidance ahead of estimates

Advanced Micro Devices reported third-quarter results after the close on Tuesday that exceeded analysts’ expectations on the top and bottom lines, with guidance to match.

  • Adjusted diluted earnings per share: $1.20 (compared to an analyst consensus estimate of $1.17)

  • Revenue: $9.25 billion (estimate: $8.74 billion, guidance: $8.4 billion to $9 billion)

  • Data center revenue: $4.34 billion (estimate: $4.14 billion)

  • Adjusted gross margin: 54% (estimate: 54%, guidance: 54%)

Its Q4 guidance for sales of $9.3 billion to $9.9 billion was strong relative to the anticipated $9.2 billion, while its adjusted gross margin outlook of 54.5% is bang in line with estimates.

Shares were as much as 6% lower following these results, but have since recovered and are in positive territory.

“AMD’s strong 3Q sales beat and 4Q outlook were likely driven by stronger PC and server CPU demand — similar to Intel’s results — along with continued share gains,” Bloomberg Intelligence analysts Kunjan Sobhani and Oscar Hernandez Tejada wrote. “The GPU ramp-up remains ahead of expectations, aided by a gaming rebound.”

AMD has had a high-profile Q4 so far, striking a megadeal with OpenAI that its CFO said “is expected to deliver tens of billions of dollars in revenue.” That announcement prompted more than 20 price target hikes from Wall Street analysts in a 24-hour span.

The company followed that up with a pact with Oracle, which said it would deploy 50,000 of AMD’s new flagship chips in data centers starting in the second half of next year. On the upcoming conference call, the Street will be looking for as much color as possible on the sales outlook for those MI450 chips.

Ahead of this release, Morgan Stanley analyst Joseph Moore wrote:

“The focus should remain on MI450. AMD’s rack scale solution shipping next year is the key, and we are excited to see what the company can do. It’s still early to make market share assessments, and while the Open AI agreement is clearly an accelerant, the reliance on cloud providers to ramp those 6 gigawatts still creates some uncertainty. Ultimately, to drive share gains, the company will need to provide better ROI than NVIDIA can offer, and customers still raise questions about that given lower rack density and the need to resolve ecosystem issues.”

The chip designer was the third-best-performing member of the VanEck Semiconductor ETF in 2025 heading into this report, with shares having more than doubled year to date.

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Luke Kawa
19m
What Wall Street’s looking for from Micron’s Q3 earnings report

A year ago, Micron’s monthly volumes on Robinhood were about 6% of Nvidia’s. Now, they’re running more than double that of the AI chip leader.

Micron wafer
markets
Luke Kawa

Wendy’s spikes on heightened attention from Reddit’s retail traders

From flipping burgers to being flipped by retail traders:

It seems Wendy’s may now be a meme stock?

Shares are up over 30% in early trading, with the ticker being the most mentioned on the WallStreetBets subreddit over the past 12 hours, per SwaggyStocks.

As of 9:03 a.m. ET, more money had changed hands trading Wendy’s stock in the premarket than Microsoft, Palantir, Apple, Amazon, or Meta.

(I’m no doctor, but I think pairing this with a short-lived meme stock of 2025, Krispy Kreme, could result in negative health outcomes.)

User u/ElegantCombination43 recently tried to stir up support by posting in r/wallstreetbets that redditors “need to save Wendy’s before it’s too late,” adding that “we’ll all be out of a job” if it goes bankrupt.

On Tuesday morning, the fast food chain announced a C-Suite shuffle, hiring Steve Cirulis from Potbelly to serve as chief financial officer and chief strategy officer.

Wendy’s could certainly use a shot in the arm to bolster its operations: trailing 12-month sales and adjusted earnings per share for Wendy’s are flat and lower, respectively, since the end of 2023.

Anyhow, Wendy’s fries are superb and second to none. Don’t @ me.

Luke Kawa
6/23/26
Leverage in the AI trade is even scarier than the debt used for its build-out

US stocks get the hiccups, Korean markets throw up, US stocks catch a fever.

Screaming Man
markets
Helena Cheng

Google invests $75 million in film studio A24, forms AI partnership

Google is investing roughly $75 million in independent film studio A24 as part of an AI partnership, according the Wall Street Journal. The investment marks Google’s first direct stake in a film studio.

Under the agreement, A24 will work with Google DeepMind to develop and test AI tools for filmmaking and production workflows, the Journal reports.

The deal comes as A24 continues to expand its business beyond indie films into television, music, and live events. Since its 2013 launch, the studio has produced Oscar-winning films such as Everything Everywhere All at Once. Its revenue has more than doubled over the past two years, according to the Journal, and the company was last valued at $3.5 billion in a Thrive Capital-led funding round in 2024.

Google’s investment comes as major technology companies increasingly deepen ties with media companies as generative AI tools become more integrated into creative industries. For Google, the partnership also expands DeepMind’s reach into entertainment and film production.

The firm and TV industry is pushing to develop AI tools that can be integrated into the time-consuming and expensive production process. In a sign of the potential value of such tools, in March, Netflix announced it would acquire Ben Affleck's startup InterPositive, which is building AI film-making tools, for $600 million.

markets
Helena Cheng

Getty Images surges following OpenAI partnership

Getty Images is surging in early trading after the company announced a multi-year licensing and product partnership with OpenAI.

Under the agreement, OpenAI will license Getty’s library of images, videos, and metadata for use in training and improving its AI models, while Getty will integrate OpenAI’s generative AI tools into its own products and services.

The deal comes as Getty faces growing pressure from generative AI tools that can create stock image-like images in seconds, threatening parts of its traditional licensing business. Getty posted revenue of $226.6 million in Q1, down 2.5% year over year on a currency-neutral basis.

Getty was one of the earliest major content companies to challenge AI firms in court, suing Stability AI in 2023 for allegedly scraping millions of copyrighted images without permission to train image-generation models.

The OpenAI deal follows Getty’s 2025 licensing agreement with Perplexity, which gave the AI search company access to Getty’s library and required image credits with links to original sources.

Before the announcement, Getty shares had been trading below $1 for months. The stock surged by 124% in early trading, erasing its year-to-date losses as investors are waiting to see if Getty can turn its licensed content library into a more valuable AI asset.

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