Exaflops to Earnings: AMD’s $10B Saudi AI Bet, Intel’s Foundry Shake-Up & Camtek’s Record Quarter
Welcome, AI & Semiconductor Investors,
AMD stunned markets by pairing heavy share repurchases with a landmark collaboration to deploy 500 MW of exaflop-scale AI compute. At the same time, Intel’s new CEO Lip-Bu Tan is flattening the org chart and reigniting foundry ambitions, while Camtek reported record Q1 revenue as HPC packaging demand surges. — Let’s Chip In
What The Chip Happened?
💥 Big Buybacks and Bold AI: AMD Makes Two Major Announcements
⚡️ Camtek’s HPC Momentum Powers a Record Quarter!
🔄 Intel Reshaped: Lip-Bu Tan’s Push for Leaner, Meaner Chipmaking
[Camtek’s Q1 2025 Results Highlight High-Performance Packaging Surge]
Read time: 7 minutes
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AMD (NASDAQ: AMD)
💥 Big Buybacks and Bold AI: AMD Makes Two Major Announcements
What The Chip: AMD revealed two headline-grabbing moves on May 13–14, 2025: a fresh $6 billion share repurchase authorization and a $10 billion strategic collaboration with Saudi Arabia’s HUMAIN to build global AI infrastructure. These updates underscore AMD’s confidence in its cash flow and its growing leadership in AI compute solutions.
The Situation Explained:
💰 $6 Billion Buyback: AMD’s board approved an additional $6B share repurchase program, on top of roughly $4B remaining from the existing plan, boosting the total buyback authority to $10B.
🏆 CEO’s Confidence: Dr. Lisa Su, AMD Chair and CEO, said the expanded program reflects the Board’s trust in AMD’s “strategic direction” and “strong free cash flow,” while pledging disciplined capital allocation.
🤝 Landmark AI Partnership: AMD and HUMAIN, led by CEO Tareq Amin, will invest $10B to deploy 500 megawatts of AI compute capacity over five years, aiming to build the “most open, scalable” global AI infrastructure.
⚙️ AI Stack in Focus: The collaboration features AMD’s portfolio, from Instinct™ GPUs (heavy AI training) and EPYC™ CPUs (dense, energy-efficient compute) to Pensando™ DPUs (network and security offloading) and Ryzen™ AI (on-device AI).
🌐 ROCm Open Software: AMD’s open-source ROCm ecosystem supports major AI frameworks (e.g., PyTorch), which lowers barriers to adoption and attracts developers.
🚀 Scale Targets: Together, AMD and HUMAIN plan to activate multi-exaflop capacity by early 2026, leveraging next-gen silicon, sustainable data centers, and an open software stack for maximum reach.
Why AI/Semiconductor Investors Should Care: These announcements reflect AMD’s multi-pronged growth strategy: returning capital to shareholders while investing heavily in AI. The $6B buyback signals strong balance sheet health and confidence in future earnings. In contrast, the $10B HUMAIN collaboration underscores AMD’s push into large-scale AI infrastructure, a market poised for rapid expansion worldwide. Both moves reinforce AMD’s position as a formidable competitor in cutting-edge compute for data centers and AI applications.
Camtek Ltd. (NASDAQ: CAMT)
🎯 Camtek’s HPC Momentum Powers Record Quarter!
What The Chip: Camtek just announced its Q1 2025 earnings on May 13, reporting record quarterly revenue of $118.6 million—a 22% jump from last year. Management highlighted strong traction in advanced packaging for high-performance computing (HPC) applications and guided Q2 revenue at $120 million to $123 million, up roughly 18% from Q2 2024.
The Situation Explained:
🔋 Record Results: Q1 revenue of $118.6 million (up 22% year-over-year), with gross margin at 52.1%—on the high end of Camtek’s historical range.
💵 Earnings Beat: Net income reached $38.7 million, or $0.79 per diluted share, reflecting the company’s tight cost controls and higher-value product mix.
🏆 Intel EPIC Supplier Award: Camtek highlighted a recent Intel EPIC Supplier Award, which recognizes a select group of top suppliers—management sees it as a proof point of Camtek’s cutting-edge capabilities.
🚀 HPC is Key: HPC applications contributed 45% to 50% of revenue this quarter. Customers are ramping both CoWoS (Chip-on-Wafer-on-Substrate) packaging and High-Bandwidth Memory (HBM) solutions to meet AI’s growing compute demands. Camtek’s new Hawk and Eagle G5 product lines target these high-growth segments.
🌏 Geopolitics & Tariffs: Management sees limited impact from the latest tariff policies since much of Camtek’s production is outside the U.S. They continue to monitor broader uncertainties but have not seen major order cancellations or shipment delays.
✅ New Products: The freshly launched Hawk (targeting higher throughput 3D metrology) and Eagle G5 (enhanced inspection capabilities) are seeing “excellent feedback,” per COO Ramy Langer, and will account for significant 2025 revenue.
🎯 Q2 Guidance: Management projects $120 million–$123 million in Q2 revenue. They also cited a “solid” Q3 backlog, reflecting healthy demand for advanced packaging solutions across various regions.
Why AI/Semiconductor Investors Should Care: Advanced packaging—especially for HPC applications—remains a massive growth driver as AI, cloud, and high-end computing all require denser, faster, and more power-efficient semiconductors. Camtek’s record quarter, high gross margin, and strong backlog indicate sustained demand for its inspection and metrology tools. The new Hawk and Eagle G5 platforms address evolving customer requirements (like HBM4, CoWoS, and hybrid bonding down the road) and support both OSATs and foundries. While geopolitical and tariff concerns remain near-term wild cards, Camtek’s global customer spread and technology leadership help position it for continued upside in the AI chip boom.
Intel Corporation (NASDAQ: INTC)
🚀 Intel Flattened: Lip-Bu Tan’s Push for Leaner, Meaner Chipmaking
What The Chip: On May 13, 2025, Intel’s CFO David Zinsner discussed how new CEO Lip-Bu Tan (former Cadence Design CEO and well-known venture investor) is overhauling Intel’s structure and culture. The focus? Flattening the organization, ramping up AI-centric product development, and reviving Intel’s foundry ambitions.
The Situation Explained:
🔎 Lean and Transparent: Tan is cutting layers in management, wanting “the lowest level of the organization to be closer to him” for faster decisions. As David Zinsner put it, “flattening the organization is important to him.”
🤝 New CEO, New Customer Approach: Tan spends long hours with big customers—sometimes 22 meetings a day—to ensure Intel’s products actually match evolving requirements, especially for AI workloads.
💰 Cost-Cutting with Purpose: Intel has lowered OpEx to $17B this year and $16B next year, with CapEx at $18B. Zinsner notes that while the savings improve the P&L, they also remove bureaucracy and push Intel to function “more like a really big start-up.”
🌐 Foundry Focus: Intel is aiming for Foundry profitability by 2027. Zinsner says that “we don’t need a lot to fill in the gaps” to achieve break-even, as internal volume (for Intel’s own chips) plus a handful of external customers can cover it.
⚙️ Process Tech Progress: Intel’s next-generation 18A node (with RibbonFET gate-all-around + PowerVia backside power) underpins upcoming PC CPUs like Panther Lake. Zinsner confirmed at least one 18A-based product will launch by year-end.
💻 Server Side: Follow-ons to Granite Rapids (like Diamond Rapids) promise improved performance, aiming to close the gap with competitors on perf per watt.
🏢 Return to Office Mandate: Tan insists more team members work on-site to speed product cycles and ramp accountability.
Why AI/Semiconductor Investors Should Care: Intel is embracing a radical shake-up with a new CEO determined to address execution head-on. By flattening the org and developing foundry services that genuinely compete with established players, Intel aims to recapture its position at the forefront of high-performance computing and AI. If Intel’s strategy delivers on faster product cycles and better alignment with customer needs, especially in critical AI workloads, investors could see meaningful share and margin improvements over the next few years.
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Disclaimer: This article is intended for educational and informational purposes only and should not be construed as investment advice. Always conduct your own research and consult with a qualified financial advisor before making any investment decisions.
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[Paid Subscribers] Camtek’s Q1 2025 Results Highlight High-Performance Packaging Surge
Date of Event: May 13, 2025
Executive Summary
*Reminder: We do not talk about valuations, just an analysis of the earnings/conferences
Camtek Ltd. (NASDAQ: CAMT; TASE: CAMT) recently reported record financial results for the first quarter ended March 31, 2025, underscoring continued momentum in its advanced inspection and metrology solutions. The company’s Q1 2025 revenue came in at $118.6 million, up 22% year-over-year (YoY), with GAAP net income rising 38% YoY to $34.3 million. Non-GAAP metrics also showed strong performance, including non-GAAP operating income of $37.3 million, up 29% compared to the year-ago period.
Management attributed Camtek’s performance to robust demand for high-performance computing (HPC) and advanced packaging inspection solutions. Camtek’s CEO, Rafi Amit, explained, “We have kicked off 2025 with record quarterly revenues and significantly improved profitability. Our primary growth driver for the coming years is advanced packaging, with a strong emphasis on high-performance computing to support AI applications.” The company’s newly launched inspection platforms, the Eagle G5 and the Hawk, received positive customer feedback and bolstered Camtek’s competitive position.
Looking ahead, Camtek expects Q2 2025 revenues in the range of $120 million to $123 million, representing a 17–20% YoY increase. Management remains confident in demand trends across Asia, where the company generates over 90% of its sales, and does not foresee major disruptions from geopolitical factors or tariff policies. This article outlines the key growth opportunities for Camtek, the technologies behind its flagship products, and the evolving supply and demand dynamics that shape its financial outlook.
Growth Opportunities
Camtek’s largest growth vector is its advanced packaging segment, specifically tied to HPC applications. HPC refers to the processing of data at high speeds for artificial intelligence (AI), machine learning, and other intensive compute workloads. In Q1 2025, management estimates that approximately 45–50% of revenues derived from HPC-related packages, with an additional 15–20% tied to other advanced packaging processes, such as fan-out wafer-level packaging.