Nvidia (NASDAQ:NVDA) stock is trending on Wednesday as Advanced Micro Devices (NASDAQ:AMD) and Super Micro Computer (NASDAQ:SMCI) failed to impress the Street with their quarterly results on Tuesday.
AMD is a direct competitor of Nvidia in the GPU market while Super Micro is a Nvidia partner.
Nvidia stock traded at just 3% off its 52-week high of $183.3.
Also Read: Nvidia Could Add Billions From China Sales If H20 GPUs Get Green Light From US: Analyst
On Tuesday, AMD posted second-quarter revenue of $7.69 billion, topping analyst expectations of $7.41 billion. Total revenue rose 32% year-over-year.
However, adjusted earnings came in at 48 cents per share, narrowly missing estimates of 49 cents.
AMD reported an adjusted gross margin of 43%, impacted by approximately $800 million in inventory and related charges tied to U.S. export controls on its Instinct MI308 GPUs. Excluding these charges, gross margin would have been 54%.
CEO Lisa Su said AMD is well-positioned for substantial growth in the second half of 2025, driven by the ramp-up of the Instinct MI350 accelerator series and continued gains in EPYC and Ryzen processor market share.
AMD guided for third-quarter revenue of approximately $8.7 billion, plus or minus $300 million, well above analyst expectations of $8.15 billion.
AMD stock fell 5% after its earnings report.
On the other hand, Super Micro reported fourth-quarter net sales of $5.76 billion, up from $4.6 billion in the previous quarter and $5.4 billion in the same period last year.
It missed the Street consensus of $5.88 billion. Earnings per share came in at 41 cents, missing the 44 cents consensus.
Gross margin declined to 9.5%, down slightly from 9.6% in the third quarter and 10.2% in the prior-year quarter. For the full fiscal year, Super Micro reported net sales of $22 billion, up from $15 billion a year earlier. Annual EPS declined to $1.68 from $1.92.
CEO Charles Liang said the company made substantial progress in fiscal 2025, citing 47% annual growth fueled by increased AI solution demand from Neoclouds, CSPs, enterprises, and sovereign entities.
Super Micro guided for first-quarter fiscal 2026 net sales between $6.00 billion and $7.00 billion, compared to the $6.60 billion Street consensus.
EPS for the quarter is expected to range from $0.40 to $0.52. For the full year, the company expects net sales of at least $33 billion, down from prior guidance of $40 billion, though still ahead of the $29.80 billion consensus estimate.
Liang said expanding global operations and enterprise adoption will support continued AI-driven growth.
On the negative side, reports indicated some Chinese automakers are moving quickly to replace Nvidia and other foreign chip suppliers, aiming to safeguard self-driving tech development from U.S. export risks.
Xpeng (NYSE:XPEV) and Nio (NYSE:NIO), both previously reliant on Nvidia, have started using their chips—Xpeng with its Turing chip and Nio with the Shenji NX9031—in their latest smart-driving models.
Nvidia stock gained 33% year-to-date, backed by the continued AI frenzy as Meta Platforms (NASDAQ:META), Microsoft (NASDAQ:MSFT), and Alphabet (NASDAQ:GOOGL) boost capital expenditures on data centers, servers, and networking.
NVDA Price Action: Nvidia stock is trading higher by 0.50% to $179.16 at publication on Wednesday.
Read Next:
Image via Shutterstock
