AMD’s is ‘not the pure play player that NVIDIA is’, analyst says

Advanced Micro Devices (AMD) is out with its third quarter earnings results. The company posted a revenue beat of $6.8 billion, coming in above the estimated $6.71 billion. Meanwhile, adjusted earnings of $0.92 per share were in line with expectations.
Matt Stucky, Northwestern Mutual Wealth Management chief portfolio manager of equities, joins Asking for a Trend to dig into the earnings report and what lies ahead for the chipmaker.
“I think it was really an in-line print and kind of looking at maybe some softness on the guidance for the fourth quarter. You know, they guided $7.5 billion or so worth of revenue, but the composition of that is really going to matter,” Stucky tells Yahoo Finance, commenting on the chipmaker’s fourth quarter guidance that didn’t exactly wow Wall Street investors.
As the AI race heats up, Stucky notes that AMD has made a couple of acquisitions to “enhance the software ecosystem around their AI accelerator business.” This will allow the chipmaker to compete with giants like Nvidia (NVDA):
“Nvidia is expected to generate roughly $165 billion or so worth of data center revenues in calendar year 2025. And expectations for AMD are around $10 billion or so as you look forward to next year. And so it’s a huge market and there’s a huge opportunity for AMD to penetrate that if they execute.”
Nvidia is currently scheduled to report its earnings on Wednesday, November 20.
Watch the video above to hear what Stucky says about AMD’s valuation.
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