Fast Money Blog- 8/8/25
This week on Wall Street we saw earnings releases from both Advanced Micro Devices, Inc. (AMD) and The Walt Disney Company (DIS).
Let’s take a look at how these two companies fared.
On Tuesday, August 5th, AMD released its Q2 2025 earnings. Top-line quarterly revenue came in at $7.69 billion, a record high, up 32% year over year.
Q2 Revenue broke down like this:
AMD’s Data Center segment, which includes GPU’s, AI chips and data processors brought in $3.2 billion, up 14% year-over-year.
Their Client and Gaming segment, which includes chips for consumer devices such as laptops, gaming PCs and game consoles, rose 69% year-over-year to $3.6 billion for the quarter.
However, despite these gains, investors on Wall Street are worried about data center setbacks tied to geopolitical export controls. U.S. export restrictions effectively eliminated sales of a China focused AI chip, MI308, for the past two quarters. However, AMD CEO Lisa Su said that the Trump administration has said it would approve waivers, and their licenses are currently being reviewed.
Looking ahead, Su announced that their newest AI chip, called Instinct MI400, is competitive with Nvidia’s GB200 chips for training and inference. This new chip is expected to hit the market next year, and OpenAI CEO Sam Altman has already committed to using it.
Things in the semi-conductor space are becoming much more complex than they have in the past. Until President Trump clarifies how much of a tariff will be imposed on semi-conductor chips, there are too many unknowns for investors.
Therefore, I recommend staying out of semi-conductor stocks.
On Wednesday, August 6th, Disney released earnings for Q3 2025 with top-line revenue of $23.7 billion, up 2% from a year earlier. Net income more than doubled to around $5.26 billion.
Entertainment revenue, which includes Linear Networks, Direct-to-Consumer (streaming services) and Content Sales/Licensing. Revenue for this segment was $10.7 billion, up 1% for the quarter year-over-year.
Entertainment Revenue Details You Need to Know:
Direct-to-Consumer (streaming) revenue was up 6%, to $6.1 billion. This segment also generated $346 million in operating income, a turnaround from a loss in the same quarter last year.
Subscriber growth was solid, with almost 2 million new additions, bringing the total to 183 million across Disney+ and Hulu
In other news, Disney confirmed a deal with the NFL to acquire NFL Media assets, including the NFL Network, in exchange for giving the NFL a 10% equity stake in ESPN.
In addition, Disney announced that ESPN will become the exclusive US streaming home of WWE Premium Live Events, including WrestleMania and SummerSlam, beginning in 2026.
The dark cloud for Disney in the Entertainment segment was that their traditional TV business saw revenue dip 15% to $2.27 billion. This is not surprising as traditional TV viewership has been steadily decreasing as viewers have more and more streaming choices.
Disney’s Experiences segment, which includes both domestic and international parks, had quarterly revenue of $9 billion, a rise of 8% year-over-year.
Domestic theme parks revenue was strong, up 10% to $6.4 billion. Over all, operating income for this segment jumped 13%.
Although Disney it is a Dow company with rising revenue, I can’t recommend the stock as a long-term investment because today’s media landscape is constantly in flux.
We are still waiting to finish up with earnings, but tech stocks like Microsoft Corporation (MSFT), Meta Platforms (META), and Oracle Corporation (ORCL) are clear winners for both the short and long term.
Tyrone Jackson, The Wealthy Investor