CNBC Daily Open: AI Plays a Significant Role in October's U.S. Stock Market Gains
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 03 2025
0mins
Should l Buy AMD?
Source: CNBC
S&P 500 and Nasdaq Performance: The S&P 500 rose 2.3% in October, defying historical trends, while the Nasdaq Composite increased by 4.7%, driven by strong performance in the technology sector, particularly AI-related stocks like Amazon and Nvidia.
AI Investment Surge: Major tech companies reported significant increases in capital expenditure aimed at AI infrastructure, indicating a sustained interest in AI technology rather than a temporary spike.
China's Manufacturing and Robotaxi Developments: China's factory activity slowed in October, with a PMI reading of 50.6, while Baidu's robotaxi service reported 250,000 weekly rides, matching Waymo's figures.
K-pop Market Prospects: A new media exchange agreement between South Korea and China may signal a revival of K-pop in China, which had faced restrictions since 2016, positively impacting shares of South Korean entertainment companies.
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Analyst Views on AMD
Wall Street analysts forecast AMD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AMD is 284.10 USD with a low forecast of 200.00 USD and a high forecast of 377.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
36 Analyst Rating
27 Buy
9 Hold
0 Sell
Strong Buy
Current: 208.440
Low
200.00
Averages
284.10
High
377.00
Current: 208.440
Low
200.00
Averages
284.10
High
377.00
About AMD
Advanced Micro Devices, Inc. is a global semiconductor company. The Company is focused on high-performance computing, graphics and visualization technologies. Its segments include Data Center, Client and Gaming, and Embedded. Data Center segment includes artificial intelligence (AI) accelerators, microprocessors (CPUs) for servers, graphics processing units (GPUs), accelerated processing units (APUs), data processing units (DPUs), Field Programmable Gate Arrays (FPGAs), smart network interface Cards (SmartNICs) and Adaptive system-on-Chip (SoC) products for data centers. Client and Gaming segment includes CPUs, APUs, chipsets for desktops and notebooks, discrete GPUs, and semi-custom SoC products and development services. Embedded segment includes embedded CPUs, GPUs, APUs, FPGAs, system on modules (SOMs), and Adaptive SoC products. It markets and sells its products under the AMD trademark. Its products include AMD EPYC, AMD Ryzen, AMD Ryzen PRO, Virtex UltraScale+, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
AMD Reports Strong Q4 Growth and Positive 2026 Guidance
- China Market Contribution: AMD's Q4 sales of $390 million in GPUs to China significantly boosted results, although management forecasts only $100 million in revenue for Q1, indicating potential volatility in future sales from this dynamic market.
- Data Center Revenue Growth: AMD's data center revenue surged 39% year-over-year to $5.4 billion, driven by record CPU and GPU sales, highlighting strong demand in the AI sector, with eight of the ten largest AI companies now utilizing its GPUs.
- Client and Gaming Segment Performance: Revenue from the client and gaming segments rose 34% and 50% respectively, totaling $3.9 billion, although the company anticipates a meaningful decline in semi-custom revenue in 2026, which could impact future growth potential.
- Overall Financial Performance: AMD's total revenue for Q4 climbed 34% year-over-year to $10.27 billion, with gross margin increasing to 54%, and adjusted earnings per share rising 40% to $1.53, surpassing market expectations and demonstrating robust performance amid high investor expectations.
See More
AMD Appoints New Chief Marketing Officer
- Executive Appointment: AMD has appointed Ariel Kelman as Senior Vice President and Chief Marketing Officer, effective immediately, with responsibilities including overseeing the global marketing organization, brand, communications, events, and go-to-market strategy to enhance customer and partner engagement.
- Leadership Experience: Kelman brings over two decades of global marketing leadership experience, having served as President and CMO at Salesforce where he successfully led the global marketing organization, and previously held senior roles at AWS and Oracle, modernizing marketing teams during rapid growth phases.
- Market Strategy: His appointment is seen as a significant step for AMD in expanding its product portfolio and driving high-performance and AI solutions, with expectations to enhance AMD's competitiveness in the data center and gaming markets through sharpened storytelling and accelerated momentum.
- Future Outlook: Kelman expressed excitement about joining AMD at this pivotal moment, looking forward to elevating the brand, deepening engagement with customers and partners, and capturing the massive AI data center opportunity enabled by AMD's uniquely differentiated products, reflecting confidence in future growth.
See More
Schwab Trading Activity Index Hits Highest Level Since February 2025
- Significant Index Growth: The Schwab Trading Activity Index (STAX) rose by 3.05% in January to 49.96, marking its highest level since February 2025, indicating a gradual recovery in investor confidence in the market.
- Tech Stocks Lead Buying: Net buying in January was predominantly in the information technology sector, with Schwab clients purchasing popular stocks like Microsoft, Tesla, and Amazon, demonstrating the strong performance of tech stocks positively impacting the overall market.
- Divergent Sector Performance: While five S&P 500 sectors saw net inflows, consumer staples and industrials experienced the highest net outflows, indicating a clear disparity in market sentiment across different sectors, which could influence investment strategies.
- Consistent Market Outperformance: STAX has outperformed the S&P 500 in five of the last six months, highlighting the close relationship between retail investor trading behavior and market trends, potentially providing crucial insights for future investment decisions.
See More
US Stocks Rebound as Tech Shares Recover
- Market Recovery: The S&P 500 Index rose by 0.46%, the Dow Jones Industrial Average increased by 0.09%, and the Nasdaq 100 climbed by 0.61%, indicating a rebound in the market driven by recovering tech and chipmaker stocks, reflecting investor confidence in economic growth.
- Mining Stocks Surge: Gold prices increased by over 1% and silver prices jumped more than 6%, boosting mining stocks with Coeur Mining up over 6% and Freeport McMoRan up more than 5%, suggesting rising investor demand for precious metals amid inflation concerns.
- Positive Earnings Outlook: Over 79% of S&P 500 companies that reported earnings exceeded expectations, with Q4 earnings growth projected at 8.4%, marking the tenth consecutive quarter of year-over-year growth, indicating sustained corporate profitability that could further drive stock market gains.
- Economic Data Focus: The market is closely watching upcoming employment and inflation data, with January nonfarm payrolls expected to rise by 69,000 and the unemployment rate to remain at 4.4%, as these figures will influence investor expectations regarding future monetary policy, potentially leading to market volatility.
See More
Key Highlights from Monday's Investing Club Meeting
- Tech Stock Rally: The S&P 500 rose on Monday, buoyed by strong performances in big tech, with club holdings Nvidia and Broadcom climbing over 3%, indicating sustained market confidence in AI investments.
- Broadcom Rating Upgrade: The club upgraded Broadcom to a buy-equivalent 1 rating on Friday, reflecting optimism about its growth potential as a major beneficiary of increased AI spending, especially with Alphabet and Meta planning to boost their AI budgets.
- Microsoft Downgrade: Melius Research downgraded Microsoft from buy to hold, citing concerns that CEO Satya Nadella has lost the AI narrative; however, the club maintains a long-term positive outlook on Microsoft shares, indicating confidence in its future performance.
- Corning Stock Surge: Corning's stock jumped 7% to record highs after being featured as an
See More
OpenAI Regains Growth Momentum Amid Competitive Pressure
- Monthly Growth Recovery: OpenAI CEO Sam Altman revealed in an internal message that ChatGPT's monthly growth rate has rebounded to over 10%, indicating the company's ability to maintain growth under competitive pressure, which boosts investor confidence.
- Surge in Codex Usage: Following the release of the new GPT-5.3-Codex model and a standalone Mac app, Codex usage surged by approximately 50% in the past week, enhancing the product's market appeal and potentially driving future revenue growth.
- Advertising Strategy Adjustment: In response to competitor Anthropic's critical ads, Altman labeled them as
See More
AMD Reports Strong Q4 Growth and Positive 2026 Guidance
- China Market Contribution: AMD's Q4 sales of $390 million in GPUs to China significantly boosted results, although management forecasts only $100 million in revenue for Q1, indicating potential volatility in future sales from this dynamic market.
- Data Center Revenue Growth: AMD's data center revenue surged 39% year-over-year to $5.4 billion, driven by record CPU and GPU sales, highlighting strong demand in the AI sector, with eight of the ten largest AI companies now utilizing its GPUs.
- Client and Gaming Segment Performance: Revenue from the client and gaming segments rose 34% and 50% respectively, totaling $3.9 billion, although the company anticipates a meaningful decline in semi-custom revenue in 2026, which could impact future growth potential.
- Overall Financial Performance: AMD's total revenue for Q4 climbed 34% year-over-year to $10.27 billion, with gross margin increasing to 54%, and adjusted earnings per share rising 40% to $1.53, surpassing market expectations and demonstrating robust performance amid high investor expectations.
See More
AMD Appoints New Chief Marketing Officer
- Executive Appointment: AMD has appointed Ariel Kelman as Senior Vice President and Chief Marketing Officer, effective immediately, with responsibilities including overseeing the global marketing organization, brand, communications, events, and go-to-market strategy to enhance customer and partner engagement.
- Leadership Experience: Kelman brings over two decades of global marketing leadership experience, having served as President and CMO at Salesforce where he successfully led the global marketing organization, and previously held senior roles at AWS and Oracle, modernizing marketing teams during rapid growth phases.
- Market Strategy: His appointment is seen as a significant step for AMD in expanding its product portfolio and driving high-performance and AI solutions, with expectations to enhance AMD's competitiveness in the data center and gaming markets through sharpened storytelling and accelerated momentum.
- Future Outlook: Kelman expressed excitement about joining AMD at this pivotal moment, looking forward to elevating the brand, deepening engagement with customers and partners, and capturing the massive AI data center opportunity enabled by AMD's uniquely differentiated products, reflecting confidence in future growth.
See More
Schwab Trading Activity Index Hits Highest Level Since February 2025
- Significant Index Growth: The Schwab Trading Activity Index (STAX) rose by 3.05% in January to 49.96, marking its highest level since February 2025, indicating a gradual recovery in investor confidence in the market.
- Tech Stocks Lead Buying: Net buying in January was predominantly in the information technology sector, with Schwab clients purchasing popular stocks like Microsoft, Tesla, and Amazon, demonstrating the strong performance of tech stocks positively impacting the overall market.
- Divergent Sector Performance: While five S&P 500 sectors saw net inflows, consumer staples and industrials experienced the highest net outflows, indicating a clear disparity in market sentiment across different sectors, which could influence investment strategies.
- Consistent Market Outperformance: STAX has outperformed the S&P 500 in five of the last six months, highlighting the close relationship between retail investor trading behavior and market trends, potentially providing crucial insights for future investment decisions.
See More
US Stocks Rebound as Tech Shares Recover
- Market Recovery: The S&P 500 Index rose by 0.46%, the Dow Jones Industrial Average increased by 0.09%, and the Nasdaq 100 climbed by 0.61%, indicating a rebound in the market driven by recovering tech and chipmaker stocks, reflecting investor confidence in economic growth.
- Mining Stocks Surge: Gold prices increased by over 1% and silver prices jumped more than 6%, boosting mining stocks with Coeur Mining up over 6% and Freeport McMoRan up more than 5%, suggesting rising investor demand for precious metals amid inflation concerns.
- Positive Earnings Outlook: Over 79% of S&P 500 companies that reported earnings exceeded expectations, with Q4 earnings growth projected at 8.4%, marking the tenth consecutive quarter of year-over-year growth, indicating sustained corporate profitability that could further drive stock market gains.
- Economic Data Focus: The market is closely watching upcoming employment and inflation data, with January nonfarm payrolls expected to rise by 69,000 and the unemployment rate to remain at 4.4%, as these figures will influence investor expectations regarding future monetary policy, potentially leading to market volatility.
See More
Key Highlights from Monday's Investing Club Meeting
- Tech Stock Rally: The S&P 500 rose on Monday, buoyed by strong performances in big tech, with club holdings Nvidia and Broadcom climbing over 3%, indicating sustained market confidence in AI investments.
- Broadcom Rating Upgrade: The club upgraded Broadcom to a buy-equivalent 1 rating on Friday, reflecting optimism about its growth potential as a major beneficiary of increased AI spending, especially with Alphabet and Meta planning to boost their AI budgets.
- Microsoft Downgrade: Melius Research downgraded Microsoft from buy to hold, citing concerns that CEO Satya Nadella has lost the AI narrative; however, the club maintains a long-term positive outlook on Microsoft shares, indicating confidence in its future performance.
- Corning Stock Surge: Corning's stock jumped 7% to record highs after being featured as an
See More
OpenAI Regains Growth Momentum Amid Competitive Pressure
- Monthly Growth Recovery: OpenAI CEO Sam Altman revealed in an internal message that ChatGPT's monthly growth rate has rebounded to over 10%, indicating the company's ability to maintain growth under competitive pressure, which boosts investor confidence.
- Surge in Codex Usage: Following the release of the new GPT-5.3-Codex model and a standalone Mac app, Codex usage surged by approximately 50% in the past week, enhancing the product's market appeal and potentially driving future revenue growth.
- Advertising Strategy Adjustment: In response to competitor Anthropic's critical ads, Altman labeled them as
See More
