Even as AMD did well, valuation concerns tripped up the entire market, especially tech and AI stocks today. It was overdue and in my opinion a healthy correction is needed, some valuations made absolutely no sense and were looking for punishment. AMD fortunately has come in for a small amount of stick.

I maintain a hold, the company is doing fairly and you can see it in these numbers below:

AMD $244.70 Q3 Results are quite good, but fully reflected in its current price. 

• AMD (AMD): Q3 Non-GAAP EPS of $1.20 beats by $0.03.
• Revenue of $9.25Bn  up 35.6% Y/Y beats by $500Mn.
• This is impressive without any revenue from shipments of AMD Instinct™ MI308 GPU products to China.
• Data Center segment revenue grew 22% to $4.3Bn YoY, with good demand for 5th Gen AMD EPYC™ processors and AMD Instinct MI350 Series GPUs.
• Recovering from a cyclical through - Client and Gaming segment revenue, shot up 73% YoY to $4Bn, as both PCs and gaming markets recovered.
• Client revenue shot up 46% to a record $2.8Bn on record sales of Ryzen™ processors and a more expensive product mix.
• Gaming revenue jumped 181% to $1.3Bn driven by strong demand for Radeon™ gaming GPUs.
• The Embedded segment revenue is still treading water 8% lower at $857Mn.

Guidance:Q4-2025

Revenue forecast at $9.6Bn V 9.20Bn consensus, plus or minus $300 million.

At mid-point revenue would be 25% higher YoY and 4% sequentially

Non-GAAP gross margin - forecast at 54.5%.

No revenue from AMD Instinct MI308 shipments to China forecast. Any sales would be a huge plus.

What is the market reaction? 3% lower, which given the overall trepidation in the market is not bad - Arista Networks (ANET) was hammered 11% on 27% revenue growth, and SMCI 6% on an EPS miss. Palantir too is down about 8% after a massive beat.

Key takeaway - I think AMD is fairly priced at this point, and should they maintain decent momentum in AI chip sales, it would be worth revisiting at around $210-$220.