AMD eyes triple profits as data centre market soars

General market commentary

US equity markets ended higher on Tuesday, with gains in defensive and cyclical sectors helping to offset renewed weakness in technology shares. The S&P 500 edged up as strength in healthcare, energy and consumer staples supported the broader market, while the Dow Jones Industrial Average outperformed, lifted by large-cap industrial and energy names. The Nasdaq Composite slipped slightly, weighed down by profit-taking in several major technology companies after a strong run-up in recent weeks. Bond markets were closed for Veterans Day, leading to lighter overall trading volumes. The advance reflected a shift in investor positioning towards sectors seen as more resilient amid elevated valuations and ongoing uncertainty about the path of interest rates.

Earnings optimism continued to underpin sentiment, with the third-quarter reporting season nearing completion and the majority of companies surpassing expectations. Strong results from healthcare and financial firms in particular provided further evidence of broad-based profit growth across the S&P 500. The energy sector also gained as WTI oil prices rose following a production halt by Russia’s Lukoil in Iraq, which added to concerns about tightening global supply. While technology remains the key driver of earnings growth, investors appeared to rotate into areas with steadier cash flows and more attractive valuations. Overall, the day’s performance suggested that the US market remains supported by solid fundamentals, though leadership is becoming more balanced as investors seek stability after a period of concentrated gains in the technology sector.

Latest market and economic update

Asian equity markets mostly advanced on Wednesday, led by a strong rebound in Hong Kong as technology and healthcare shares lifted the Hang Seng to a one-month high. Japan’s Nikkei was flat, weighed by a sharp fall in SoftBank after its Nvidia stake sale, while gains in Sony and cyclicals supported the TOPIX. Other regional markets posted modest rises.

Wall Street futures steadied on Tuesday evening ahead of the US government reopening vote. S&P 500 Futures were flat, Nasdaq 100 Futures rose less than 0.1%, and Dow Jones Futures were nearly unchanged. In after-hours trading, AMD surged around 4% following strong five-year revenue and earnings forecasts, while Nvidia weighed on broader gains.

European shares hit record highs on Tuesday, with the STOXX 600 up 1.3% and the STOXX 50 reaching new peaks, supported by healthcare, luxury, and banking equities. Germany’s DAX and France’s CAC 40 also advanced, aided by optimism over the US government reopening and strong corporate earnings, while sector gains offset concerns over tech valuations.

The US dollar weakened this morning after ADP data showed weekly job losses, signalling a cooling labour market and raising expectations of a December Fed rate cut. The euro held steady at $1.1586 and sterling at $1.3149, while risk currencies like the Australian and New Zealand dollars gained. The yen fell further amid Japan’s policy signals.

Oil prices dipped slightly in Asian trade today, with Brent at $65.04 and WTI at $60.85 a barrel. Gains from hopes of a US government reopening were offset by concerns over a potential global supply glut, rising OPEC+ production, and weak demand from China. Lukoil’s Iraqi production halt provided limited support amid ongoing sanctions on Russia.

Equities on the move

The following companies experienced moves in their share price driven by analyst ratings, quarterly earnings, or other news:

Advanced Micro Devices forecast strong growth, expecting annual data centre chip revenue to reach $100 billion within five years and earnings to triple. Shares rose 4% post-market. CEO Lisa Su highlighted AI-driven growth, a $1 trillion data centre market by 2030, and continued AI-related acquisitions, while AMD’s next-generation MI400 chips and server racks are planned for 2026.

SoftBank shares fell up to 10% on Wednesday after revealing it had sold its entire $5.8 billion stake in Nvidia, overshadowing stronger-than-expected earnings. The sale, aimed at funding new AI ventures, raised concerns about overheated valuations amid a wider tech sell-off, with investor Michael Burry warning of a potential AI-driven market bubble.

JD.com set record Singles’ Day sales, with orders up 40% and volume nearly 60%. Growth was strong in electronics, AI products, apparel, and daily necessities. Its logistics, offline stores, and international business performed well, while AI operations, including JoyStreamer, improved efficiency and generated over 2.3 billion yuan in sales.

Adyen shares jumped over 8% after the Dutch payments firm outlined long-term targets, projecting around 20% annual net revenue growth beyond 2026 and an EBITDA margin above 55% by 2028. Morgan Stanley called the guidance stronger than expected, reaffirming its Overweight rating and €1,885 price target, highlighting Adyen’s growth potential.

US regulators have finalised terms to ease capital rules, potentially allowing banks to hold more Treasuries, Bloomberg reported. The plan ties capital reserves to a bank’s systemic role rather than all assets equally. Implementation awaits White House approval, marking a key win for Fed Vice Chair Michelle Bowman’s deregulatory agenda.

AstraZeneca shares surged past their September 2024 peak on Tuesday, reaching a record high and making it the largest UK-listed equity by market value at nearly £210 billion ($282 billion). The rise followed strong quarterly earnings and a U.S. drug-pricing deal.

Hensoldt shares fell over 8% after Morgan Stanley and Jefferies questioned 2026 revenue, margin targets, and cash conversion. The 2030 outlook was in line with consensus, but growth appeared backend-loaded. Hensoldt plans accelerated sales from 2027, Optronics expansion, and Operations 2.0 upgrades, with capital spending peaking in 2026.

Wells Fargo raised its year-end 2025 S&P 500 target to 7,100, citing a near-contrarian buy signal and improving liquidity. Analyst Ohsung Kwon highlighted easing funding, government reopening, and AI-driven investment as support for a “risk-on rally.” With expected 10% annual earnings growth, the S&P 500 could deliver around 8% annual returns, reaching 9,500 by 2030.

Mizuho analysts view Oracle’s recent weakness as “largely unwarranted” and a buying opportunity ahead of its fiscal second-quarter earnings in December. CoreWeave’s issues were company-specific, while strong AI demand and resilient GPU pricing support Oracle’s fundamentals and growth prospects, according to the analysts.

Bank of America notes Advanced Micro Devices remains under-owned by active managers, with just 24% holding, despite strong year-on-year and quarterly performance. Ownership rose 438bps this quarter, supported by key customers. BofA maintains a Buy rating with a $300 target, citing AMD’s AI accelerator potential and 33% consensus sales growth into year-end.

JPMorgan downgraded CoreWeave to Neutral, cutting its December 2025 price target to $110 due to supply chain delays in data centre construction. The company trimmed 2025 revenue and operating income forecasts, while reducing capex. Despite short-term setbacks, analysts highlighted strong long-term AI growth potential, a $56 billion backlog, and government opportunities.

BMO Capital Markets upgraded Instacart to Outperform with a $58 price target, citing strong execution, upside potential, and discounted valuation. Q3 results included 10% YoY GTV growth and improved margins. BMO highlighted the core grocery marketplace, enterprise platform, and retail media as growth drivers, with $1.5 billion in share buybacks supporting fundamentals.

UBS upgraded Linde PLC to Buy from Neutral, citing “quality at a discount” and attractive risk/reward. Adjusted EPS growth is expected to rise from 6% in 2025 to 9–10% in 2026, supported by project startups, recovering helium and rare gas pricing, and a $7 billion backlog. The price target was set at $500, implying around 20% upside.

Upcoming data and events

Today’s key economic releases include the OPEC Monthly Report, API Weekly Crude Stock data, and the EIA Short-Term Energy Outlook, while Fed officials Williams, Waller, Bostic, and Collins speak. Major earnings reports are led by tech giant Cisco Systems and gaming leader Flutter Entertainment.

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