August 7, 2025

finance  
AMD Q3 Revenue: $9B Projection, Nvidia Chip Competition

AMD's Q2 earnings revealed revenue exceeding expectations, although adjusted EPS fell short. Looking ahead, AMD projects Q3 revenue between $8.4 billion and $9 billion. Despite a revenue beat of $7.69 billion, AMD's stock dipped due to China AI chip export restrictions and a $134 million GAAP loss. The company's MI350X AI chips are set to compete with Nvidia. Meanwhile, Wedbush analyst Dan Ives maintains an Outperform rating for Palantir, raising the price target to $200.00, suggesting it could reach a trillion-dollar market cap due to AI. However, other analysts predict major plunges for AI stocks like Nvidia and Palantir, citing competition and overvaluation concerns. Foxconn reported record July sales, driven by AI server demand. Apple's App Store growth is boosting its price target to $266, according to Goldman Sachs. Snap is shifting its focus to AI amid slowing ad revenue growth. Cathie Wood's ARK funds invested $4.1 million in Nvidia, showing confidence in AI infrastructure, and also increased its investment in AMD. Finally, TeamLinkt, a sports management platform using AI, received a growth investment from Growth Street Partners.

Key Takeaways

  • AMD projects Q3 revenue between $8.4 billion and $9 billion, launching its MI350 line of AI chips to compete with Nvidia.
  • AMD's stock dipped due to China AI chip export restrictions, despite a revenue beat of $7.69 billion.
  • Wedbush analysts predict Palantir could reach a $1 trillion valuation due to its strong position in the AI market.
  • Analysts predict Nvidia could fall 42% due to competition, while Palantir could drop 74% because of valuation concerns.
  • Foxconn reported record July sales, driven by strong demand for AI servers.
  • Apple's App Store growth is boosting its price target to $266, according to Goldman Sachs.
  • Snap is focusing on AI as its advertising revenue growth slows down.
  • Cathie Wood's ARK funds invested $4.1 million in Nvidia, signaling confidence in AI infrastructure.
  • TeamLinkt, a sports management platform with AI, received a growth investment from Growth Street Partners.
  • U.S. export controls restricting sales of advanced AI chips to China impacted AMD, resulting in $800 million in charges.

AMD's AI Sales Boost Q2 Earnings and Q3 Outlook Exceeds Expectations

AMD's Q2 earnings were released, with revenue exceeding expectations but adjusted EPS falling short. The company's Q3 guidance projects revenue between $8.4 billion and $9 billion. The Data Center segment reached $3.2 billion in revenue, while the Client business generated $3.6 billion. AMD also launched its MI350 line of AI chips to compete with Nvidia. AMD expects revenue of about $8.7 billion for Q3 2025.

Is AMD's Dip a Buying Opportunity for Long-Term Investors?

AMD's Q2 2025 earnings missed EPS forecasts because of China AI chip export restrictions, causing a stock drop. Despite a revenue beat of $7.69B, China sales uncertainty and a $134M GAAP loss highlight risks. AMD's upcoming MI350X AI chips aim to compete with Nvidia in AI. Strong cash reserves of $5.9B and a forward P/E of 22x suggest the stock may be undervalued. Long-term investors are considering the potential for China sales to resume against competition and margin pressures.

AMD Stock Drops Despite Revenue Beat Due to China AI Chip Sales Ban

AMD's stock declined after its Q2 2025 report, even though revenue beat expectations. The drop is likely due to earnings per share meeting but not exceeding estimates. U.S. export controls restricting sales of advanced AI chips to China impacted AMD, resulting in $800 million in charges. Data center revenue grew 14%, while client revenue increased 67%.

Wedbush Predicts Palantir's Trillion-Dollar Future Amid AI Growth

Wedbush analyst Dan Ives raised the price target for Palantir Technologies Inc. to $200.00, maintaining an Outperform rating. The company increased its full-year 2025 revenue guidance, expecting growth in its US commercial business. This growth is driven by the adoption of its Artificial Intelligence platform. Wedbush believes Palantir could reach a trillion-dollar market cap due to the AI revolution.

Wedbush Predicts Palantir's Trillion-Dollar Future Amid AI Growth

Wedbush analyst Dan Ives increased the price target for Palantir Technologies Inc. to $200.00, keeping an Outperform rating. Palantir expects its AI platform to drive growth and has raised its full-year 2025 revenue guidance. Wedbush believes Palantir could reach a $1 trillion valuation due to its strong position in the AI market. The company's focus on data integration and AI gives it a competitive edge.

Analysts Predict Major Plunge for AI Stocks Nvidia and Palantir

Some analysts predict Nvidia and Palantir Technologies, key AI companies, could drop significantly in value. One analyst expects Nvidia to fall 42% due to competition from its own customers developing AI chips. Another analyst believes Palantir's stock could collapse 74% because of valuation concerns. These analysts suggest that the AI market may be overhyped and that these companies are overvalued.

Analysts Predict Major Plunge for AI Stocks Nvidia and Palantir

Analysts are giving mixed signals on AI stocks Nvidia and Palantir. One analyst projects Nvidia could fall 42%, citing competition from major customers developing their own AI chips. Another analyst expects Palantir to drop 74%, pointing to its high valuation. These predictions contrast with the generally positive outlook for these companies.

Foxconn's July Sales Soar to Record Highs Thanks to AI Demand

Hon Hai Precision Industry Co. (Foxconn) reported its highest ever sales for July, driven by strong demand for AI servers. Consolidated sales reached NT$613.87 billion (US$20.50 billion), up 7.25 percent year-over-year. The company's cloud and networking division experienced strong sales growth due to AI and cloud services. Hon Hai will discuss its Q2 results and Q3 guidance at an investor conference on August 14.

Apple's App Store Growth Boosts Price Target to $266

Goldman Sachs analyst Michael Ng reaffirmed a Buy rating on Apple Inc. with a $266.00 price target. This follows strong performance data from the App Store. July 2025 Apple App Store spending grew 13% year-over-year, the fastest monthly growth since November 2024. The App Store is estimated to be the largest category within Apple Services revenue.

AMD Stock Dips Amid China Sales Uncertainty Despite AI Optimism

AMD's stock fell on Wednesday because the company didn't give a clear timeline for resuming sales in China. China is a very important market for AMD's AI processors.

Snap Shifts Focus to AI as Ad Revenue Growth Slows Down

Snap is focusing on AI as its advertising revenue growth slows. The company's revenue increased by 9% to $1.34 billion, but ad growth was only 4%. Snap is facing challenges from economic factors and platform changes. The company is investing in AI to improve ad performance and reduce costs. Time spent on Snap's Spotlight video feature has increased by 23%.

Cathie Wood Invests Millions in AI Stock Nvidia

Cathie Wood's ARK funds invested $4.1 million in Nvidia, signaling strong confidence in AI infrastructure. The ARK Space Exploration & Innovation ETF and ARKQ added Nvidia stock. Wood sees AI as a key investment area and believes Nvidia is a leader in AI infrastructure. ARK also increased its investment in AMD and added Tempus AI. The funds trimmed their position in Joby Aviation.

TeamLinkt Gets Investment to Grow AI Sports Platform

TeamLinkt, a sports management platform with AI, received a growth investment from Growth Street Partners. TeamLinkt helps leagues and clubs with registration, scheduling, and communication. The investment will help TeamLinkt improve its technology and customer support. TeamLinkt uses AI to help organizations create forms, schedules, and automate tasks. Growth Street Partners will join TeamLinkt's Board of Directors.

Sources

AMD AI Chips Nvidia Palantir AI Stocks Revenue Earnings China Export Controls Data Center Client Business MI350 MI350X Wedbush Dan Ives Price Target Market Cap AI Platform Valuation Foxconn AI Servers Hon Hai Precision Industry Co. Apple App Store Snap Advertising Revenue Cathie Wood ARK Funds TeamLinkt AI Sports Platform Growth Street Partners AI Stock Investment Guidance