Chipmakers lead a selective recovery
Investors were buying semiconductor stocks on Election Day while continuing to punish disappointing details inside otherwise strong earnings reports. Tuesday’s split suggested appetite for the AI trade was returning selectively.
An early-session snapshot showed the S&P 500 up 0.1% and Nasdaq approximately 0.5% higher, while the Dow fell around 190 points. Nvidia gained roughly 3%, and Advanced Micro Devices (AMD) climbed approximately 5% ahead of earnings.
Apple and Palantir moved lower. Apple faced concern about rising memory costs squeezing holiday-quarter margins, while Palantir’s strong revenue growth competed with questions about slower contract growth.
The distinction matters for the rebound. Investors are still willing to buy companies supplying the computing buildout, but recent earnings reactions show that strong sales alone cannot resolve concerns about future profitability or the durability of demand.
AMD must turn spending commitments into a stronger outlook
AMD will release third-quarter results after Tuesday’s close, followed by a 5 p.m. ET earnings call. Its commentary will arrive as election returns begin competing for investors’ attention.
The company previously guided for quarterly revenue of $13 billion, plus or minus $300 million, and an adjusted gross margin near 56%. The revenue midpoint represents approximately 41% growth from a year earlier. These are management’s prior targets, rather than newly issued guidance.
AMD enters the report with substantial exposure to the infrastructure buildout. Data Center supplied 58% of second-quarter revenue, supported by EPYC server processors and Instinct graphics accelerators.
That product mix deserves attention. Growth across the broader division does not automatically establish how quickly AI accelerator sales are expanding.
Fourth-quarter revenue expectations, accelerator deployments and margins will help show whether customer spending plans are becoming profitable shipments. An earnings beat would establish what AMD delivered; the outlook will shape expectations for what comes next.
Get Our AMD Earnings Breakdown and Post-Election Stock Watchlist
The economic backdrop offers support without an all-clear
Tuesday’s September labor-market report showed 7.5 million job openings, compared with a revised 7.2 million in August. Hiring reached 5.4 million, with the hiring rate edging to 3.4% from 3.3%.
The Bureau of Labor Statistics characterized openings and hiring as little changed. Layoffs and discharges also held broadly steady at 1.6 million, offering limited evidence of a sudden deterioration in employer demand.
Oil supplied another potential source of relief as prices retreated amid diplomatic efforts involving Iran. However, fresh military developments and shifting headlines kept the energy outlook volatile. Sustained declines would provide stronger support for household purchasing power and business costs.
Election results could clarify congressional control and the direction of policy negotiations. They will leave company profitability and interest-rate expectations unresolved.
AMD’s outlook is the immediate test for chip buyers. Friday’s October employment report then brings the focus back to hiring, unemployment and wages, giving this rebound another hurdle after the ballots are counted.
Explore More Stories in Markets
Disclaimer
Wall Street Access is an independent financial publisher. Wall Street Access is not a financial advisor. No company mentioned has compensated Wall Street Access for the preparation, publication or distribution of this article. This content is provided for informational and educational purposes only and is not investment advice or a recommendation to buy, sell or hold any security. Investing involves risk, including the possible loss of principal.
Prices, market capitalizations, financial figures and other market data are based on information available as of the date and time of publication and may change without notice. Information is drawn from public sources believed to be reliable but is not guaranteed to be complete or accurate. Opinions and expectations expressed are our own and may change as new information becomes available.
Readers should conduct their own due diligence and contact a licensed financial professional before making any investment decision. Past performance does not guarantee future results. Any material ownership interest or conflict of interest, where applicable, will be disclosed separately.
