Tech Newsround – AMD, Nvidia, Services

AMD Q4 25 – Nvidia’s demise is not imminent.

• AMD reported good Q4 2025 results, but its failure to guide above expectations is a sign that, despite the chatter, Nvidia is still at the top of the pile.
• Q4 25 revenues / EPS were $10.3bn / $1.53 ahead of estimates of $9.7bn / $1.32, but guidance fell short.
• Here, revenues are expected to te be $9.5bn – $10.1bn ($9.8bn), which was ahead of the average of consensus at $9.4bn, but the bulls were looking for more than $10bn.
• The hope was that the OpenAI deal, which could be worth up to $60bn, would start featuring in the real revenues of the company, but this has yet to come to pass.
• AMD really needs to start shipping against this order, as it is OpenAI that gives AMD the endorsement as the No. 2, which in turn, will give its software platform the credibility that it needs for everyone to start using it.
• While the market waits for this to feature in the realm of reality rather than press releases and conjecture, AMD will remain in Nvidia’s shadow.
• I don’t take this as a sign that Nvidia will be report weaker sales and guidance, but more of a sign that AMD is not taking share as quickly as many expected.
• Hence, when Nvidia reports its earnings on 25^th February, I expect another confident report and a carefully managed slight beat and raise.
• AMD badly needs the share price to rise to begin capitalising on the deal it has with OpenAI, but at 33.1x 2026 PER, this looks a bit challenging to me.
• I would look elsewhere.

Software & Services – AI-related meltdown

• The information services and software companies have taken yet another large hit this time as a result of a tool released by Anthropic that the market fears is going to put them out of business.
• The software and services sector is now resoundingly hated by the market, with falling valuations and cratering share prices creating precisely the environment where one should go looking for bargains.
• The new tool added to its Cowork product is designed to automate the task of contract reviewing and legal briefings but comes with the warning that everything should be reviewed by a human before it is used.
• This has created a new wave of fear that AI will replace the software and professional services of many firms, with IBM down 6.5%, Snowflake 9.2%, SAP 4.6%, ServiceNow 7.0% and Reuters down 15.7% to name but a few.
• Even my larger competitors Gartner, Forrester and Informa were not spared with share price declines of 20.9%, 12.1% and 5.6% respectively.
• Given how generative AI has impacted my workflow, I can understand the fear, but Radio Free Mobile does a better job of monetising AI than OpenAI does in terms of profits and cash flow.
• Hence, if this sector can harness AI rather than flail against it, some of them should be able to make their services better and more productive, meaning that they monetise the AI revolution better than those who make the models.
• I think that this could be a major theme for 2026, and I am beginning to pick through the wreckage for the babies that have been thrown out with the bathwater.