Chipmaker Advanced Micro Devices AMD +0.94% ▲ is scheduled to announce its third-quarter earnings on November 4. Ahead of the Q3 results, top UBS analyst Timothy Arcuri reiterated a Buy rating on AMD stock with a price target of $265, saying that much like rival Intel INTC +4.00% ▲ , he also expects AMD to report Q3 revenue toward the high end of its $9 billion guidance range. The analyst expects AMD’s Q3 top line to be driven by strength in both server and client CPU segments. 

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AMD stock has rallied 114% (as of Monday’s closing), as investors are optimistic about the company’s ability to capture the demand for artificial intelligence (AI) chips.

Wall Street expects AMD’s Q3 earnings per share (EPS) to grow by 27.2% to $1.17 and revenue to increase by 28.3% to $8.75 billion.

UBS Analyst Is Upbeat About AMD’s Q3 Results

Notably, Arcuri is confident about AMD’s Q3 FY25 revenue, backed by robust server and client CPU businesses, with server strength potentially driving some upside to gross margin. The 5-star analyst expects data center GPU (graphics processing unit) revenue of about $1.7 billion.

For Q4 FY25, Arcuri continues to expect revenue of about $9.3 billion (about $200 million higher than the Street’s expectation). That said, he sees the possibility of AMD guiding as high as $9.5 billion, driven by renewed server upgrade activity and “some spillover from AI into traditional compute infrastructure as the industry embarks on new strategies to prepare for more AI processing in the data processing market.”

Furthermore, Arcuri expects AMD’s client business to be “flat to up,” better than normal seasonal levels. He expects Q4 FY25 data center GPU revenue of about $2.4 billion, which reflects a $700 million increase from Q3 FY25 due to the ramp of MI355x at customers, including Meta Platforms META -0.48% ▼ and Oracle’s ORCL +1.37% ▲ OCI (Oracle Cloud Infrastructure). Arcuri noted that AMD typically guides Q1 FY26 revenue down slightly due to normal seasonality. He expects this trend to continue this year based on his checks on MI355x, which generally suggest that many customers are waiting for MI455 racks next year. Arcuri also expects management to issue a very bullish multi-year outlook for its data center GPU business.

Is AMD Stock a Buy or Sell Now?

Currently, Wall Street has a Moderate Buy consensus rating on Advanced Micro Devices stock based on 29 Buys and 10 Holds. The average AMD stock price target of $249.92 indicates a possible downside of 3.8% from current levels.

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Semiconductor stocks, which had been under pressure earlier this month amid renewed US–China trade tensions, rebounded sharply on Monday after signs of progress toward a potential deal. The VanEck Semiconductor ETF SMH -0.19% ▼ rose 2.5% to $359.94, recovering from a steep 6% slide on October 10, its worst one-day loss since April.

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Analysts, including Wedbush Securities analyst Dan Ives, said easing trade concerns could spark a “tech rebound,” lifting chipmakers that were hit hardest by tariff worries. As optimism returns, leading names are gaining ground — Advanced Micro Devices AMD +0.90% ▲ climbed 2.7% to $259.35, Nvidia Corporation NVDA +0.61% ▲ rose 2.8% to $191.57, and Broadcom Inc. AVGO +0.65% ▲ added 2.2% to $363.52. Intel Corporation INTC +3.97% ▲ — which earns about 30% of its revenue from China — rallied 3.2% to $39.60, while Micron Technology MU -0.69% ▼ edged 0.5% higher to $219.33.

Chip Equipment Makers Join the Rally

The recovery extended to semiconductor equipment names that had been under pressure due to their high exposure to China. Applied Materials AMAT -1.33% ▼ rose 1.1% to $232.14, while Lam Research LRCX -1.15% ▼ jumped 3.4% to $157.60. Design software maker Cadence Design Systems CDNS -3.13% ▼ , which has faced fluctuating restrictions on its China operations, also gained 1.9% to $346.50.

Analysts See Potential Turning Point for Tech

Ives said the renewed trade talks could mark a “groundbreaking moment” for the tech sector if they lead to a lasting deal. The 5-star analyst noted that months of tariff threats and export limits have been “a heavy drag on investor sentiment,” especially for chipmakers and AI-focused companies.

Ives added that a trade agreement could “lift one of the biggest overhangs on tech,” opening the door for fresh gains across the AI, semiconductor, and software space. Other analysts share this view, saying a truce would ease supply chain strain and steady chip sales to China — a key market for the industry.

With the holiday season nearing and AI demand still strong, investors believe top names like AMD, Nvidia, Intel, and Broadcom could build on their recent momentum if trade talks continue on a positive track.

Which Chip Stock Is the Best Buy?

Among these five major chipmakers, Nvidia leads with the strongest outlook. Analysts rate it a Strong Buy with a $225 price target, implying about 17.5% upside.

Broadcom also carries a Strong Buy rating, with roughly 8% upside, while Micron  is rated Strong Buy but shows a small 2% downside. Meanwhile, AMD holds a Moderate Buy rating and a 3.7% downside, and Intel remains a Hold with a 12% downside.

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Cathie Wood, CEO of ARK Invest, has issued a warning that the red-hot AI stock rally may soon face a “reality check.” Speaking with CNBC’s Dan Murphy at Saudi Arabia’s Future Investment Initiative (FII), Wood warned that market pressure could build in the coming months. She said the focus is likely to shift from falling interest rates to rising ones, which could weigh on high-growth tech and AI stocks.

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Wood Warns of a Shift in Market Mood

Wood said she doesn’t see the AI market as a bubble but warned that rising interest rates could spark a short-term pullback. She noted that markets may soon shift focus “from lower interest rates to rising rates,” adding that innovation and rates aren’t always inversely linked. Still, she expects a “reality check” ahead as investors adjust to tighter financial conditions.

Her comments come as AI stocks continue to dominate investor interest, driving tech valuations to record highs. Global policymakers, including the IMF, the Bank of England, and Fed Chair Jerome Powell, have also warned that heavy AI spending could spark a broader market correction.

ARK Invest Makes Key Portfolio Moves

Even with her cautious outlook, Cathie Wood’s ARK Invest continues to bet on innovative and high-growth names.

In recent weeks, the firm has boosted its stakes in Robinhood Markets HOOD +0.80% ▲ , Netflix NFLX +0.86% ▲ , and Baidu BIDU -1.90% ▼ , reflecting confidence in fintech and AI-driven platforms. At the same time, ARK trimmed its exposure to Shopify SHOP +0.61% ▲ and Advanced Micro Devices AMD +0.90% ▲ to lock in gains, and also reduced a small position in Palantir Technologies (PLTR) earlier this month.

(Note: To see Cathie Wood’s October 27 trades, click here — AMZN, BABA, NTLA, XYZ: Cathie Wood Loads Up on Intellia, Block, Amazon & Alibaba, Cuts Stake in Shopify and Other Growth Stocks)

What Comes Next for AI Stocks?

Wood’s remarks hint that a cooling period could be ahead for AI leaders after months of intense market optimism. While she still believes in the long-term potential of disruptive tech, her call for a “reality check” suggests investors should be prepared for short-term volatility, and possibly, a sharp reset in AI stock valuations.

Here’s a list of top-rated AI stocks. Let’s compare them using the TipRanks Stock Comparison Tool to see which looks most attractive.

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Cathie Wood, the founder and CEO of Ark Invest, believes humanoid robots could be the biggest opportunity yet in AI. Speaking with CNBC at the Future Investment Initiative in Riyadh, she said machines that look and move like people could reshape how both consumers and companies use AI in daily life.

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She explained that these robots, built to mirror human size and movement, will have roles across sectors such as transportation, healthcare, and personal assistance. Wood said investors have focused on software-based AI for years, but she expects the next phase to happen in the physical world. According to Wood, the ability of AI to act in real environments could make humanoid robots one of the most valuable technologies to emerge from the current AI wave.

Tesla’s Role and the ARK AI Portfolio

Tesla Inc. TSLA +2.16% ▲ already plays a leading part in that idea. Its Optimus robot, shown in July at the World AI Conference in Shanghai, is one of the most advanced examples of this type of technology. Chief Executive Elon Musk said the Optimus robots could one day make up about 80% of Tesla’s total value. However, China’s own robotics companies, such as Unitree, are gaining global attention as well, with cheaper, more affordable humanoids.   

Ark Invest’s AI & Robotics UCITS ETF currently holds Tesla as its top position at about 9.16%. Palantir Technologies (PLTR) follows at 7.02%, and Advanced Micro Devices AMD +0.94% ▲ is next at 6.14%. Together, these firms represent Ark’s view that AI will extend from digital systems to real-world automation.

Productivity and Long-Term Value

Wood also spoke about how AI is already helping people and businesses work more efficiently. She said the next challenge for large companies will be to reorganize around the technology to unlock its full potential. She pointed to Palantir as a company that could help enterprises make that shift.

At the same time, she said consumers have quickly embraced AI tools that make daily life easier, from online shopping help to faster research. However, Wood cautioned that while AI-related stocks have seen strong gains, valuations could face a short-term reality check. She added that the long-term outlook still looks strong, as AI continues to improve and spread across more industries.

For now, Wood remains confident that the combination of robotics and AI could bring a new wave of productivity and growth in the years ahead.

Using TipRanks’ Comparison Tool, we’ve lined up and compared all three companies mentioned in the piece, alongside two other publicly traded companies in the robotics sector.

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Shares of Qualcomm QCOM -4.09% ▼ surged in today’s trading after the chipmaker announced plans to launch new AI chips for data centers. This will put the firm in direct competition with Nvidia NVDA +0.63% ▲ , which currently leads the market. Until now, Qualcomm has focused mostly on smartphone and wireless chips, not the powerful chips used in massive AI server farms. Nevertheless, the two new chips, called the AI200 and AI250, are expected to be released in 2026 and 2027 and will come in large, liquid-cooled racks that fill an entire server cabinet, just like the systems offered by Nvidia and AMD AMD +0.94% ▲ .

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Interestingly, the chips use Qualcomm’s Hexagon neural processing units (NPUs), which were first developed for its smartphone chips. According to Durga Malladi, head of Qualcomm’s data center and edge business, the company wanted to prove its capabilities in mobile devices before moving up to data centers. This expansion comes as global spending on AI data centers is expected to hit $6.7 trillion by 2030, mostly for systems built around AI chips. While Nvidia still dominates the market, other companies like AMD are gaining ground, and tech giants like Google GOOGL -0.65% ▼ are building their own AI chips.

Moreover, Qualcomm’s new chips are designed to run AI models rather than train them, and the company says that its racks will be cheaper to run and use about 160 kilowatts, which is on par with Nvidia’s. Qualcomm will also sell its chips and parts separately for customers who want to build their own systems. In addition, while the company didn’t reveal prices or exact specs, it claimed that its chips are more energy-efficient and cost-effective, with support for up to 768GB of memory per card. This is more than what Nvidia or AMD currently offer.

Is QCOM Stock a Good Buy?

Turning to Wall Street, analysts have a Moderate Buy consensus rating on QCOM stock based on 10 Buys, six Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average QCOM price target of $184.29 per share implies 5.2% downside risk.

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