🚀 AMD Shares Drop

Market Overview
Read time 1.4 minutes

Year To Date Performances:

1. AMD’s fourth-quarter results for 2025 initially appeared to be a resounding success, with the company delivering a record $10.27 billion in revenue and an earnings-per-share beat that surpassed Wall Street’s consensus by nearly 16%. Despite these record-breaking figures and a first-quarter revenue forecast of $9.8 billion—which technically sits above the average analyst estimate—the stock tumbled over 8% in extended trading. This paradox stems from the fact that "shadow" or "whisper" expectations among institutional investors had pegged the Q1 guidance much higher, with some bulls looking for a figure north of $10 billion to justify AMD’s premium valuation relative to Nvidia. Furthermore, the quality of the Q4 beat was brought into question by a one-time $360 million inventory reserve release and $390 million in potentially non-repeatable China sales of the downgraded MI308 chip, leading many to believe that the company’s underlying organic growth is struggling to keep pace with the hyper-accelerated AI infrastructure cycle.

2. Nvidia CEO Jensen Huang has officially entered a full-scale media blitz to extinguish the growing fire surrounding the company’s massive commitment to OpenAI. Speaking with Jim Cramer on Tuesday afternoon, Huang dismissed the weekend’s reports of a "stalled" or "on ice" deal as "complete nonsense," insisting that the partnership remains the cornerstone of Nvidia’s long-term infrastructure strategy. While the markets were rattled by a 3.4% decline today—driven by fears that the 10-gigawatt compute project was little more than a phantom press release—Huang confirmed that Nvidia will definitely participate in OpenAI’s upcoming fundraising, which is being marketed as the largest private round in history. This public show of force was bolstered by OpenAI CEO Sam Altman, who took to social media to reiterate that Nvidia remains their primary hardware partner, even as the startup continues to diversify its supplier base with chips from AMD and Broadcom. The coordinated response aims to reassure investors that while a definitive contract might still be in the hands of lawyers, the strategic intent between the world’s most valuable chipmaker and its largest AI customer remains ironclad as they march toward an expected 2026 IPO.

3. Stephen Miran has officially ended his unusual and controversial dual role in the Trump administration by resigning as the chair of the Council of Economic Advisers to remain a sitting governor on the Federal Reserve Board. This decision fulfills a specific pledge he made during his September 2025 confirmation hearings to resolve the perceived ethical friction of holding a high-level White House advisory post while simultaneously voting on nonpartisan monetary policy. Miran originally stepped into the central bank to fill the vacancy left by Adriana Kugler—whose term was cut short by a trading scandal—and although his official term technically expired on January 31, he is legally permitted to stay at the Fed until his successor is confirmed. Known as the most outspoken dove on the Federal Open Market Committee, Miran has consistently dissented in favor of deeper interest rate cuts, often pushing for 50-basis-point reductions while the majority of the board preferred more cautious 25-point adjustments or holding steady. His departure from the executive branch today clears the regulatory deck for him to hold the line at the Fed until Kevin Warsh is confirmed to take over his seat, effectively bridging the gap for the President's hand-picked successor to eventually replace Jerome Powell as Chair this May.

   Headlines

   1. Microsoft has promoted numerous sales leaders as the company aims to expand its AI sales.

   2. Gold rebounded yesterday after declining significantly earlier this week.