Hi {{first_name}} ,

🔴 AMD BEAT, AND THE STOCK STILL DROPPED

Revenue came in at $11.5B, up 50% from a year ago. A record.

Data centre revenue was $6.7B, more than double last year, and now 58% of the entire company.

Earnings of $1.66 per share against roughly $1.61 expected. Next quarter guided to about $13B, above what analyst wanted.

Lisa Su told analysts data centre sales should double again in 2027, and Helios, their first full rack AI system, starts shipping this quarter to Meta, OpenAI and Oracle.

So how did the stock react? It closed up 7% at $519, then fell almost 9% after hours to around $473.

Pete's Take 👇
This is not a bad quarter. This is a good quarter running into an expensive stock. AMD was already up around 140% this year before it even reported. When a stock has priced in perfection, merely excellent becomes a disappointment. The business is fine but it is a crowded trade with tonnes of built-in expectation.

🏗 CATERPILLAR JUST HAD ITS BIGGEST BEAT IN YEARS

Another company that reported and it is an unlikely beneficiary of AI boom!

Revenue $20.5B, up 24%. First time in company history above $20B in a single quarter. Adjusted earnings $8.17 per share against about $6.20 expected, and that is up from $4.72 a year ago.

The backlog hit a record $72B, up 92%. Power generation sales, mostly tied to data centre projects, rose 29%. Full year outlook raised.

CAT finished the day up almost 6%, around $880.

Here is what makes it interesting. A week ago Caterpillar was downgraded over political pushback against data centre construction, and Michael Burry, the guy from The Big Short, said publicly he was shorting it. 😆 Then this landed.

Pete's Take 👇
Look at what actually moved. Not the yellow diggers. The generators. Caterpillar is quietly turning into a power company that happens to also sell excavators, and some customers are now placing orders as far out as 2030. When a boring industrial name starts printing tech growth rates, that deserves your attention. And a reminder worth keeping: the loudest bearish voice in the room is not automatically the correct one.

And the reason why we are excited about CAT in Stock Market Genius.

Because it is one of our Stock on Spotlight where we share high quality stocks in the community.

We first featured it in Jan 2026 when it was only $648 and now over $880!

Congrats to all those who took action!

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Happy Hunting!

Pete
Invest with Pete

🚨‼️ By the way, I’ll never PM anyone on telegram or any other social media platforms. If you receive any “Pete” messaging you, these are scammers impersonating me. Pls beware!

The information provided in this newsletter is for informational purposes only and does not constitute financial advice. Readers should seek their own independent financial advice before making any investment decisions. Please note that while Pete is a portfolio manager, the opinions expressed in this newsletter are his own and do not represent the views of any organization. Always perform your own research and due diligence before investing.