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HedgeWeekly Stockwatch: AMD and Arista climb as data-centre names slip
AMD and Arista rise on AI demand, CoreWeave falls on policy worries, solar gains and Novo raises its outlook.
HedgeWeekly Markets Desk ·
AMD, Advanced Micro Devices: Third-quarter revenue rose 45% to about $13.4 billion and data-centre sales nearly doubled. AMD expects 2027 revenue growth above 80%, against the 77% analysts expected. Bull case: Data-centre chips are set to make up about 80% of sales, showing AMD winning AI business from rivals. Bear case: A non-cash charge above $1 billion tied to OpenAI and Meta warrants hit quarterly profit.
ANET, Arista Networks: Third-quarter revenue rose 58.5% to $3.66 billion, with adjusted earnings of $1.20 a share. It guided fourth-quarter revenue to $3.9 billion to $4.0 billion. Bull case: Guidance points to further growth as AI data centres buy more high-speed networking gear. Bear case: The move only just topped what options implied, and data-centre names fell on policy worries.
CRWV, CoreWeave: AI data-centre names fell as Democrats swept Congress, raising expectations of tighter oversight, tech tax-incentive rollbacks and antitrust scrutiny, Investing.com reported. Bull case: Customer demand for AI computing is still growing, as AMD's and Arista's results show. Bear case: Local opposition disrupted 45 data-centre projects worth $68 billion in the second quarter, per Data Center Watch.
FSLR, First Solar: Solar shares rose after the Democratic sweep, with Canadian Solar up 7% and SolarEdge up 3%, Reuters reported. European renewables also gained. Bull case: A Democratic Congress may be friendlier to clean-energy incentives than the current one. Bear case: President Trump keeps his veto, so policy changes are far from certain.
NVO, Novo Nordisk: Third-quarter adjusted operating profit beat expectations, and the drugmaker raised its full-year sales and profit forecasts. Bull case: Raised guidance suggests demand for its medicines is holding up better than feared. Bear case: Competition in obesity and diabetes drugs remains intense, keeping pressure on prices.