Stock Market Update

[BRIEFING.COM] The major averages continue to sit mixed, though the S&P 500 (-0.4%) has slumped back toward session lows. 

Advanced Micro Devices (AMD 206.06, -36.05, -14.89%) is sharply lower despite beating Q4 expectations and issuing upside Q1 guidance last night. The company beat EPS expectations by its widest margin in over three years, while revenue increased 34.1% year-over-year to a record $10.27 billion. AMD expects Q1 revenue between $9.50-10.10, which includes about $100 mln of instinct sales to China. 

Fundamentals remain strong as AMD continues to take share in server and client while Data Center growth accelerates. That said, some investors may view the beat as a bit less clean since Q4 included some China Instinct revenue that was not widely expected, while the Q1 outlook still points to a sequential decline even as Data Center is expected to grow. More notably, a lot of optimism is already embedded in the stock around the MI450 and Helios opportunity.

Elsewhere, Eli Lilly (LLY 1106.65, +103.19, +10.28%) delivered a powerhouse performance for 4Q25, sending the stock trading sharply higher as the company continues to dominate the high-demand obesity and diabetes treatment markets. While its primary competitor, Novo Nordisk A/S (NVO 47.95, -2.35, -4.67%), issued a cautious outlook yesterday, LLY crushed 4Q25 estimates and provided upside FY26 guidance, reinforcing its position as a global leader in cardiometabolic health. Where NVO sees "unprecedented pricing pressure," LLY sees a "volume response" enabled by its massive internal investments in supply chain resilience. By committing $55 bln to manufacturing since 2020, LLY has effectively engineered its own growth trajectory, allowing it to meet overwhelming demand that competitors simply cannot.