To The Moon

Tuesday’s earnings drew a sharp line between companies accelerating into the AI buildout and high-valuation growth stocks that merely met expectations.

AMD rallied after data-center revenue nearly doubled and its forecast beat estimates. Shopify moved the other way: 32% revenue growth and a profit beat could not offset small misses in sales and merchandise volume. Arista posted the largest move of the group as demand for AI networking equipment drove its fastest growth since going public.

$Advanced Micro Devices(AMD)$ rose more than 5% after hours

AMD designs processors and accelerators used in PCs, servers, game consoles and AI data centers.

Third-quarter revenue climbed 45% to $13.38 billion, beating the roughly $13.1 billion consensus. GAAP diluted EPS was $1.46, while adjusted EPS of $2.09 topped estimates near $1.95.

Data-center revenue surged 97% to a record $8.5 billion as customers increased purchases of Instinct accelerators and EPYC server processors. Client and gaming revenue declined 8%, including a 40% drop in gaming sales.

AMD forecast fourth-quarter revenue of about $17 billion, plus or minus 3%, versus Wall Street’s roughly $16.3 billion estimate. Management also expects revenue to grow more than 80% in 2027, ahead of the 77% consensus.

The stock added about 3.7% during regular trading and rose more than 5% after hours. Investors responded to the strong forecast, Helios production ramp and evidence that AMD is becoming a more credible alternative supplier for large AI customers.

$Shopify(SHOP)$ dropped 8.7%

Shopify provides online-store, payment and commerce tools to merchants of all sizes.

Third-quarter revenue increased 32% to $3.74 billion, missing the $3.77 billion consensus. Adjusted EPS of 49 cents beat the 47-cent estimate.

Gross merchandise volume rose roughly 29% to $119.15 billion, below Wall Street’s approximately $120.9 billion forecast. Free cash flow totaled $816 million, representing a 22% margin.

For the holiday quarter, Shopify expects revenue growth in the low-30% range and gross-profit growth in the high-20% range. Operating expenses are projected at 29% to 30% of revenue.

Shares closed 8.7% lower on Nov. 3. The revenue and merchandise-volume misses were modest, but Shopify’s premium valuation left little room for slowing growth or guidance that merely matched expectations.

$Arista Networks(ANET)$ gained about 9.47% after hours

Arista sells high-speed networking equipment and software for cloud and AI data centers.

Revenue jumped 58.5% to $3.66 billion, easily beating the $3.33 billion estimate. Adjusted EPS of $1.20 topped Wall Street’s $1.08 forecast.

Arista projected fourth-quarter revenue of $3.9 billion to $4 billion, adjusted EPS of $1.26 to $1.30 and an adjusted operating margin of 48% to 49%.

The shares gained about 9.47% after hours. As AI clusters grow larger, customers need faster connections among thousands of chips and servers. Arista’s results showed that networking is becoming one of the strongest second-order beneficiaries of AI infrastructure spending.

💬 Discussion

AMD jumped more than 5% after hours as data-center revenue nearly doubled. Would you chase the rally or wait for a pullback?

• A. Chase — AI demand could drive more upside.

• B. Wait — I'd rather buy at a better price.

• C. Stick with NVDA — Nvidia is still my top AI chip pick.

What's your move?