Key Takeaways
- Advanced Micro Devices (AMD) and Amgen (AMGN) reported robust third-quarter earnings, significantly exceeding revenue and earnings per share (EPS) estimates, while Rivian (RIVN) also surpassed revenue and vehicle delivery expectations.
- Super Micro Computer (SMCI) missed its first-quarter revenue and EPS estimates but offered an optimistic revenue forecast for the second quarter, suggesting a rebound.
- Norway's $2.1 trillion oil fund has suspended its ethics rules to avoid divesting from major technology companies, signaling a pragmatic shift in investment policy.
- The U.S. government faces a potential shutdown next week, which an official warns could lead to "mass chaos" due to possible airspace closures. Meanwhile, Canada's budget projects larger deficits for 2025, with increased spending on defense, housing, and infrastructure.
The latest earnings season has delivered a mixed but generally positive picture for several key players, with AMD (AMD), Amgen (AMGN), and Rivian (RIVN) posting strong results that beat analyst expectations. This comes amidst a backdrop of evolving global economic policies and potential governmental disruptions.
Advanced Micro Devices (AMD) announced strong third-quarter earnings, reporting revenue of $9.25 billion, significantly beating estimates of $8.74 billion. The semiconductor giant also posted an adjusted EPS of $1.20, surpassing the $1.17 estimate. Adjusted operating income reached $2.24 billion, slightly above estimates, with the company investing $2.14 billion in research and development during the quarter.
Similarly, Amgen (AMGN) reported an impressive third quarter, with revenue reaching $9.56 billion, well above the estimated $8.95 billion. Its adjusted EPS stood at $5.64, comfortably beating the $4.99 estimate. The biotechnology firm's adjusted operating income was $4.31 billion, ahead of the expected $3.79 billion, leading the company to raise its full-year revenue and adjusted EPS guidance.
In the electric vehicle sector, Rivian (RIVN) delivered better-than-expected third-quarter results. The company's revenue rose 78% to $1.56 billion, exceeding estimates of $1.49 billion, driven by higher vehicle deliveries and pricing. Rivian delivered 13,201 vehicles, surpassing the estimated 12,972, and produced 10,720 vehicles, also above expectations. The adjusted loss per share was $0.65, better than the anticipated loss of $0.71.
However, Super Micro Computer (SMCI) presented a more complex earnings report. For its first quarter of 2025, the company reported revenue of $5.02 billion, falling short of the $6.09 billion estimate, with adjusted EPS at $0.35, below the expected $0.41. The gross margin was 9.5%, slightly below the 9.63% estimate. Despite the misses, Super Micro Computer (SMCI) offered a strong outlook for the second quarter, projecting revenue between $10 billion and $11 billion, significantly higher than the $8.05 billion estimate.
Beyond corporate earnings, the global financial landscape is seeing notable shifts. Norway’s $2.1 trillion oil fund has suspended its ethics rules, a move designed to prevent the fund from being forced to sell its substantial stakes in Big Tech companies. This decision reflects a broader challenge for large institutional investors balancing ethical guidelines with market realities.
On the governmental front, the United States faces a looming government shutdown that could lead to severe disruptions, including the potential closure of some airspace next week, which an official warned could result in "mass chaos". Meanwhile, Canada's budget for 2025 is set to incur larger deficits, now projected at C$78 billion, as Prime Minister Mark Carney's administration injects tens of billions into defense, housing, and major projects aimed at boosting exports. The country's debt-to-GDP ratio is expected to peak at 43.3% by 2029.
In the broader market, the world's bond markets have been described as turning into a "giant blob," indicating a complex and potentially less transparent environment. Additionally, the do-it-yourself traders who embraced Bitcoin ETFs as cryptocurrency moved into the mainstream are now experiencing the volatility inherent in digital assets.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.