00:00 Speaker a
The street has very high expectations around this chipmaker AMD, and in the end these expectations may be a little too high. We know that revenue has surpassed expectations quarterly since the fourth quarter of 2023, but revenue for the quarter has declined based on the company's ban to sell chips from China or rather ban chips from China. Now, what we know is that in this battle, AMD will follow behind it in this arms race of the AI revolution. And that's what we saw again. AMD data centers have brought revenues to $3.2 billion, up 14%. Well, Trump, or rather Nvidia, compared, has jumped over 39 billion to 73%, given what they posted in the first quarter. Of course, Nvidia is expected to appear later this month. But hope is high, intention is high, and now all the questions remain about that quarter guidance and what this will look like when we can return to shipping these AI chips from China.
02:01 Speaker b
Yes, and there is also the issue of what is already priced in stocks, except for the Chinese debate. I have to say I'm just laughing at myself reading Jordan Klein's notes at Mizuho. And who really owns AMD or Nvidia because of the benefits from sales to China blocked by Trump? If so, he says he will be embarrassed, because people are more focused on the bigger AI stories here. But it's all, Josh, if you see what you've done this year, then you might see why things are back a little today, let alone what you've done this year.
03:06 Josh Lipton
Well, Julie, to add to that point, there are people who own AI stocks so they can't beat their earnings per share, right? Last quarter. Why look at a lot of these AI Tech Stocks Rally, that's because revenue from the last quarter almost always beats estimates, right? Looking at what Hyperscalar can do last week, we can essentially expect revenue surprises when we look at what Nvidia does quarterly. That's not what AMD did. And yes, when you zoom out all year round, it was the best performance semiconductor of the year. This year, stock prices have increased by more than 40%, comparing them to Nvidia and Broadcom. This year, I actually outperformed as shown on the screen, but have been zoomed out for the past five years. AMD is not approaching the performance shown on the blue and yellow screens of Nvidia and Broadcom. So, people wonder where it fits in this AI story, so I watched a bit of AMD's catch-up rally, but mostly they weren't close to the forefront. But I think it's interesting to see this stock's response from certain stock stories this quarter when we strip off AMD's rally low and preempt what comes from Nvidia at the end of the month. American analyst covering Nvidia, Vivek Arya, covered AMD, pointed out in the Nvidia Preview Note. This is what you're talking about the other day. Julie emphasizes Nvidia has been gathering very significantly since its lows in April, taking into account the ability to impress the market, leading up to the market that challenges these AI Chip Makers. You certainly see it on AMD, and it makes you wonder about the big things we're going to get at the end of the month.
05:19 Speaker b
Yes, that's certainly true.
