|Bid||0.00 x 800|
|Ask||0.00 x 41800|
|Day's Range||32.45 - 33.35|
|52 Week Range||15.72 - 34.86|
|Beta (3Y Monthly)||3.37|
|PE Ratio (TTM)||130.56|
|Earnings Date||Jul 30, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||31.56|
Benzinga has examined prospects for many investor favorite stocks over the past week. Bullish calls included leaders in the aerospace, media and retail sectors. Some bearish calls were prompted by quarterly ...
Advanced Micro Devices Inc. is the chip maker to watch this earnings season as the company takes on Intel Corp. and Nvidia Corp. amid problems in the sector that are expected to show signs of improvement.
Advanced Micro Devices (NASDAQ:AMD) stock has been red-hot, hitting new 52-week highs earlier this month. When it comes to returns, AMD stock is crushing its peers like Nvidia (NASDAQ:NVDA) and Intel (NASDAQ:INTC).Source: Shutterstock Even better, InvestorPlace readers who followed my advice have been crushing the trade too, riding the surge from about $30 to $34 and cashing out on its run into resistance. Now we have to consider when to buy AMD stock again and decide whether it can break out over its stiff resistance. * 10 Tech Stocks That Are Still Worth Your Time (And Money) $34 has proven to be a tough nut to crack, but with the trend pointing higher, a breakout could be looming. AMD stock price fell slightly on Wednesday as it failed to exceed $74. Advanced Micro Devices stock was down over 2% in early trading on Thursday, thanks to a downgrade by Mizuho. In mid-afternoon trading today, the stock is down 0.2% to $32.90.InvestorPlace - Stock Market News, Stock Advice & Trading TipsMizuho analysts downgraded the stock to "neutral" from "buy," but raised their price target to $37 from $33. The new target is more than 10% above the current price of Advanced Micro Devices stock. Not that it matters all that much, but it's worth pointing out that the Street-high target for AMD stock is $43, about 30% above its current levels.So can Advanced Micro Devices stock reach $43? Trading AMD Stock Click to EnlargeA look at the weekly chart above shows a pretty simple layout. AMD stock is being pushed higher by uptrend support (depicted by the blue line) and is finding resistance at $34. It temporarily broke above this mark earlier this week, but it wasn't able to stay above it.That's not surprising, given how much resistance the shares face at $33-$34. In fact, I'd argue that it's healthy for AMD stock to back off its recent run a bit. The more shallow the dips become and the more times it tests $34, the more likely it is to push through that level.This is setting up as a textbook ascending triangle formation. That's where a stock makes a series of higher lows, led higher by uptrend support, while regularly failing at a static level of resistance. That's exactly what Advanced Micro Devices stock is doing now.That doesn't guarantee that AMD stock will break out or that it will push through $34. Advanced Micro Devices stock very well could lose uptrend support and tumble lower in the ensuing months. I would absolutely love another shot at AMD near the 10-week moving average, which is currently at $30.60, or near its uptrend support.That would require a fall of about 7.5% of AMD stock price, which I'm not sure we'll get. The company reports its earnings on July 30, so investors looking to ride some pre-earnings momentum or those looking to avoid a potentially large move should keep that date in mind.So what's the plan? Those who love AMD stock can gobble it up on any of these pullbacks. For more prudent investors, buying Advanced Micro Devices stock on a deeper pullback or on a breakout over $34 are possibilities. Like I said, I would love to buy AMD after it retests its support. Valuing Advanced Micro DevicesWhy is Advanced Micro Devices stock doing so much better than its peers? In 2019, AMD stock is up 78%, compared to just 28% and 5% for NVDA and INTC, respectively. Over the past 12 months, the performance gaps are even more stark.AMD stock price has surged 97% in the last year, while NVDA has fallen almost 33%. Ouch. Intel is down about 5% during that span. This difference in performance is why I recommended a basket approach more than a year ago to protect against risk. While Nvidia has underperformed Intel, imagine owning just Intel or just Nvidia and watching AMD double. That's frustrating.Luckily though, AMD's fundamentals are improving.While Nvidia makes the best-in-class chips, AMD's products are making up ground. AMD's products are being incorporated into more PCs, gaming consoles and other systems, enabling the company to generate strong top- and bottom-line growth. While Intel is struggling to generate growth and while Nvidia has negative metrics in 2018, AMD continues to pump out solid results.Analysts, on average, expect AMD's revenue to eke higher by 6.3% this year to $6.88 billion. In 2020 though, the consensus forecast calls for a 22%surge to almost $8.5 billion. The company's earnings forecast is even more impressive, with average estimates calling for 43.5% growth this year and an acceleration up to 56% growth in 2020.In 2020, the consensus estimate calls for earnings of $1.03 per share, which leaves AMD stock trading at roughly 32 times next year's consensus EPS outlook. That's a little pricey, considering how much better Nvidia's margins are than AMD's. But assuming AMD can meet the consensus growth estimates, the valuation of AMD stock isn't all that unreasonable.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long NVDA. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Tech Stocks That Are Still Worth Your Time (And Money) * 7 Marijuana Stocks With Critical Levels to Watch * 7 of the Best Smart-Beta ETFs to Target Right Now The post Can AMD Stock Break Out to $37?Â appeared first on InvestorPlace.
As one of the world's premiere chipmakers, Intel (NASDAQ:INTC) naturally attracts significant attention from market participants. However, this period draws more eyeballs than usual.Source: Shutterstock It's not only about the company's upcoming second quarter of 2019 earnings report. Rather, it's whether the semiconductor firm has finally addressed its challenges to justify taking a shot at Intel stock.Understandably, many investors are not convinced with INTC stock. In Q1, the chipmaker delivered a beat on both per-share profitability and revenue. Ordinarily, such results would spike the Intel stock price. But that's not what happened, primarily due to management disclosing a rather disappointing guidance for the rest of the year.InvestorPlace - Stock Market News, Stock Advice & Trading TipsFor one thing, Intel didn't see a "clear path to profitability" in the mobile 5G space. Essentially, this move gave rival Qualcomm (NASDAQ:QCOM) significant leverage in the next-generation telecommunications sector. Just as critically, Intel lost credibility with its core customers. For instance, Apple (NASDAQ:AAPL) desperately hoped that Intel could provide a 5G solution because it has a poor relationship with Qualcomm.Failing your enterprise clients is a surefire way to ruin your reputation. Thus, I can't blame the markets for taking down the Intel stock price a few notches. * 7 Stocks Top Investors Are Buying Now Secondly, the competition smells blood. Of course, I'm mostly referring to Advanced Micro Devices (NASDAQ:AMD). A perpetual runner-up, AMD has finally taken Intel to task for its many errors. Now, AMD has the chipset portfolio to compete with Intel on laptop PCs, data servers and enterprise-level businesses. With the rival bringing attractive pricing and top-notch products to the table, INTC stock appears incredibly troubled. Intel Stock Is an Ideal Contrarian InvestmentNaturally, folks may wonder if they should take the obvious trade: dump INTC stock and get on board AMD (or another upstart rival)? Although the narrative doesn't appear compelling for INTC, I believe that shares offer an ideal contrarian investment.Generally speaking, both the investor and the techie community are heaping the love on AMD. I get it. Most folks love a good underdog story, and AMD is it. Plus, the company has a rabid following that is difficult to explain.If you want to start a verbal tussle, say something negative about AMD. If you want threats to your safety, talk positively about Intel stock in the same breath.But this scenario is ripe for going against the grain. Despite Intel's reputation as an established stalwart, it still has a viable growth narrative. For example, Q4 2006 to Q1 2019, the correlation coefficient between corporate revenue and INTC stock is 87%. Even under a more recent comparison from Q1 2014, the correlation remains strong at 82%. Click to EnlargeWhat am I saying here? As revenue increases, so too does the Intel stock price. And it's doing so consistently, meaning that this investment is rational: the technicals largely trade on the fundamentals.However, when the price action dips significantly as we saw following the Q1 2019 earnings report, I believe contrarians have an opportunity to profit. Mainly, I think this because the bad news is baked into the Intel stock price.Sure, the company has suffered some embarrassing internal and operational gaffes. But to be perpetually bearish on INTC stock doesn't really make sense. We're talking Intel here. If anything, they have the resources to aggressively reclaim lost ground that other competitors do not have. INTC Stock Remains a PowerhouseAnother factor to consider is that AMD may have matched Intel in terms of chip performance and capabilities. However, that's just one component. As a significantly smaller outfit, AMD doesn't have the bandwidth to take down INTC comprehensively.For instance, look at the PC market. Intel's delays in distributing its 10-nanometer chips have opened the door to AMD to steal segment share. However, AMD is only able to provide the chips themselves.But the PC market is much more than just processors. As the larger company, INTC offers related components to its enterprise clients, such as Wi-Fi chips and NAND flash. It also builds platforms so client manufacturers can maximize the potential of their PC products.In other words, Intel is too deeply embedded within the broader tech market to simply unseat. Therefore, I feel confident that Intel stock can rise from its present (and likely temporary) challenges.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks Top Investors Are Buying Now * The 10 Best Cryptocurrencies to Keep on Your Radar * 7 Marijuana Penny Stocks That Could Triple (But You Won't Make Money) The post Hereas Why the Contrarian Case for Intel Stock Makes Sense appeared first on InvestorPlace.
The undisputed star of the semiconductor space so far this year has been Advanced Micro Devices (NASDAQ:AMD). AMD stock price has gained more than 50% in 2019, as traders praised the firm's efforts to take market share from its larger rivals and produce chips with unparalleled quality. But with AMD stock price near its 52-week high, many are wondering how much further AMD stock can rise in the back half of the year. AMD Stock Has a Bright FutureSource: Shutterstock It's not hard to see why traders have been loving Advanced Micro Devices stock, since the company is indisputably on a roll. AMD has been successfully stealing market share from Intel (NASDAQ:INTC), and the firm's upcoming earnings results are expected to confirm that its share of the PC market is growing. * 10 Tech Stocks That Are Still Worth Your Time (And Money) Nomura analyst David Wong thinks that AMD's share of the desktop-processor market will increase going forward. He predicted that the firm's desktop processor market share would rise to at least 20% by December.InvestorPlace - Stock Market News, Stock Advice & Trading TipsOn top of what are expected to be rosy Q3 results, AMD has a lot going for it further into the future as well. News that the firm's chips will power the next generation of Xbox consoles speaks to the quality products that Advance Micro Devices is offering. Plus, the company's graphic processing units (GPUs) are a top choice for cryptocurrency miners, so AMD stock could be a big winner if blockchain gains more traction. The Trouble With AMDUnfortunately, a lot of the optimism towards AMD has already been baked into Advanced Micro Devices stock. Susquehanna Financial Group analyst Christopher Rolland said AMD's control of 19.1% of the desktop market is likely to grow after the July 7 release of the company's Ryzen 7 nanometer central processing units (CPUs). While that's great news, it probably won't move the needle on AMD stock much when the firm announces its results because traders have already priced it into the shares. As fellow InvestorPlace contributor Tim Biggam pointed out, AMD stock has become exceedingly expensive over the past few months. That explains why the average price target among analysts covering AMD stock sits at $30.28, 10% lower than where the stock is trading today. There's a lot of hype keeping AMD stock propped up, so the company would need a blowout quarter in order to deliver better than expected results. Difficult Second HalfAMD stock looks like it's already had its major rally. From here, it looks like things will get bumpy for the shares during the second half of the year. Not only will the owners of Advanced Micro Devices stock be exposed to risks facing the entire market, like tensions with China and weakening economic conditions, but they'll be exposed to an added layer of risk simply because expectations for AMD are high. Any nugget of bad news could take AMD stock price considerably lower, especially during earnings season. The Bottom Line on Advanced Micro Devices StockWith that said, I believe patience is the only way to play AMD stock. For investors who picked AMD up when it was trading in the teens at the beginning of the year, it's time for them to reevaluate their timelines. Those who want to hold AMD stock over the long haul should hold onto the shares because of the firm's solid future, but they should be prepared for some turbulence. AMD stock price won't rise forever, but if AMD can continue to grab market share from its larger rivals, the stock will deliver in the long-term.For investors considering buying AMD now, I think patience is also key. AMD stock is likely to drop at some point over the next six months, creating a much better entry point. I'm not convinced that AMD stock price can rise much more this year, but 2020 and beyond is a different story.The long-term growth potential of Advanced Micro Devices is undeniable, but I think other investments are more appealing at this point. Still, investors should keep AMD on their radar, in case a dip in the share price creates a more attractive buying opportunity.As of this writing Laura Hoy was long INTC. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Tech Stocks That Are Still Worth Your Time (And Money) * 7 Marijuana Stocks With Critical Levels to Watch * 7 of the Best Smart-Beta ETFs to Target Right Now The post AMD Stock Could Become Attractive on Pullbacks appeared first on InvestorPlace.
Advanced Micro Devices (AMD) is set to report its Q2 earnings on Wednesday, July 24. The semiconductor firm's stock has surged 79% for far this year.
U.S. equities wavered on the day, with stocks initially falling on Thursday as investors digest another round of earnings. However, the indices jumped abruptly in the final 120 minutes of trading. After settling down a bit, investors eventually saw a 0.27% advance in the Nasdaq today. The PowerShares QQQ ETF (NASDAQ:QQQ) tacked on a 0.11% gain.Source: Shutterstock The S&P 500 and Dow Jones also rose on Thursday.Of course, the main discussion right now is earnings. As interesting as the banks can be, we've finally got a big one to talk about: Netflix (NASDAQ:NFLX).InvestorPlace - Stock Market News, Stock Advice & Trading Tips Tech Earnings Kick OffNetflix reported earnings of 60 cents per share, which fell 30% year-over-year but beat analysts' expectations by 4 cents. Unfortunately, this isn't a story about profits, it's a story about growth and NFLX failed to deliver -- big time. * Dow Jones Today: An Impressive Comeback Revenue of $4.92 billion grew 33% year-over-year, but was only in-line with estimates. It's surprising NFLX didn't miss, given that subscriber results missed so badly. In the U.S., Netflix lost 126,000 subscribers, well below the 300,000 subscribers analysts were expecting it to add in the quarter. It was the company's first decline in eight years. Internationally, Netflix added 2.8 million subs, which came up short of expectations for 4.8 million.It's no surprise that shares tanked more than 10% on the day and closed near the lows. We've mentioned a few times over the past few weeks that increasing competition and Netflix losing some its top shows could be a problem. It's not like NFLX is going anywhere, but with negative free cash flow and little in the way of profits, investors may not be willing to assign it such a premium valuation.Surprisingly, the other FANG stocks took Netflix's beating pretty well.International Business Machines (NYSE:IBM) beat bottom-line expectations but -- shocker -- came up short on revenue. Still, the Street looked past the miss and bid up shares of IBM, which is now quite close to new annual highs. (Here's the trade setup). Click to EnlargeShares of eBay (NASDAQ:EBAY) climbed 1.9% on Thursday, after beating on earnings and revenue expectations. However, that's well off the stock's initial 7.6% rally to $42, which set a new 52-week high in the process. Let's see if there's more upside to come in the days ahead or whether $40.50 will remain as tough resistance.Last but not least is Microsoft (NASDAQ:MSFT), which will report earnings after the close. Up 33.5% year-to-date, boasting a $1 trillion market cap and less than 2.5% off its highs sets up for tough bar to hurdle. Expectations call for revenue to grow 9% year-over-year to $32.77 billion and for earnings to jump 7% to $1.21 per share. And you know its Azure unit will be in focus. Heard on the Nasdaq TodayShares of Advanced Micro Devices (NASDAQ:AMD) fell about 3.5% at one point. However, AMD ended down "just" 1.8%, after the company was downgraded by Mizuho analysts. They cut their rating from buy to neutral, but raised their price target to $37 from $33. Seems like it might be an opportunity for investors if AMD goes lower.Apple (NASDAQ:AAPL) caught a lift on the day, rising about 1% on a Raymond James upgrade. The analysts went from market perform to outperform on increased confidence for next year's 5G iPhones. They also bumped Skyworks Solutions (NASDAQ:SWKS) to an outperform rating.In the M&A deal that will never end, reports now suggest that we may soon have an answer for the Sprint (NYSE:S) tie-up with T-Mobile (NASDAQ:TMUS). Apparently, if the Justice Department and the companies can't come to an agreement, the DoJ will sue to block the deal. That may not be what investors want to hear, but just to have a decision would be nice at this point.It's reminiscent of the Qualcomm (NASDAQ:QCOM) deal for NXP Semiconductors (NASDAQ:NXPI). * 5 Top Stock Trades for Friday: IBM, HON, PM, MS, BAC Speaking of Qualcomm, shares sank about 2% on the day after the EU hit it with a $272 million fine. This follows last year's EU fine of more than $1 billion. Of course, QCOM plans to appeal the ruling, but man, does this company have some political risk or what? The DoJ, FTC, European Union, etc. This name seems to move more on government and legal rulings than fundamentals and earnings.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell was long AAPL More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks Top Investors Are Buying Now * The 10 Best Cryptocurrencies to Keep on Your Radar * 7 Marijuana Penny Stocks That Could Triple (But You Won't Make Money) The post Nasdaq Today: Netflix Plunges on Earnings, Microsoftas on Deck appeared first on InvestorPlace.
It may be time to take some profits following (AMD) stock’s stunning rise this year, according to Mizuho Securities. Advanced Micro Devices (ticker: AMD) makes processors that act as the main computing brains for PCs, servers, and graphics cards, competing with (INTC) (INTC) and (NVDA) (NVDA). AMD stock has risen more than 75% so far this year as investors have grown optimistic about the company’s product offerings for 2019.
Advanced Micro Devices, Inc. (NASDAQ: AMD ) shares are up about 82% year-to-date, with the stock hitting a 52-week high of $34.86 on Tuesday. The Analyst Mizuho Securities analyst Vijay Rakesh downgraded ...
Investing.com – Advanced Micro Devices (NASDAQ:AMD) shares slid on Thursday as Mizuho called time on the chipmaker’s dramatic rally, citing “limited upside” ahead.
Advanced Micro Devices Inc. shares are falling in Thursday morning trading after Mizuho analyst Vijay Rakesh downgraded the stock to neutral on concern about September quarter shipments, while a strong rally this year has left limited room for upside.
Editor's note: This story was previously published in February 2019. It has been updated and republished.Semiconductor stocks proved to be important drivers of the broader technology sector's upside in 2018. Just look at the widely followed PHLX SOX Semiconductor Sector Index, which is up 9.60% year-to-date. Investors looking to profit should consider semiconductor ETFs.Shares of Advanced Micro Devices (NASDAQ:AMD) have recently been buoyed by a spate of bullish analyst commentary, including a round of upward price target revisions.InvestorPlace - Stock Market News, Stock Advice & Trading TipsOn the other hand, there are risks associated with semiconductor stocks and exchange-traded funds (ETFs). Late last year, Morgan Stanley waxed bearish on the semiconductor group:"Memory markets have worsened in recent weeks. For DRAM [memory chip], demand is weakening, inventory and pricing pressures are building, and vendors are struggling to move bits," according to Morgan Stanley. "In NAND [flash memory], there is just too much supply. Earnings risks are emerging from 3Q and our cautious view on memory is playing out."Semiconductor stocks and ETFs are also facing headwinds created by the U.S.- China trade war."The U.S. semiconductor industry will warn President Donald Trump's administration that curbs on exports of chips and equipment to China could damage American jobs," according to Nikkei Asian Review. * 7 Stocks Top Investors Are Buying Now Of course, positive surprises are always possible and negative expectations are not etched in stone. But investors looking to make bullish chip bets can consider these seven semiconductor ETFs -- instead of risking their money in individual chip stocks. iShares PHLX Semiconductor ETF (SOXX)Expense ratio: 0.47% per year, or $47 on a $10,000 investment.One of the largest semiconductor ETFs, the iShares PHLX Semiconductor ETF (NASDAQ:SOXX) targets the aforementioned PHLX SOX Semiconductor Sector Index. This is a cap-weighted fund, meaning it tilts toward the largest semiconductor stocks. Click to Enlarge Source: Shutterstock Qualcomm (NASDAQ:QCOM), NVIDIA and Texas Instruments (NASDAQ:TXN) are the three largest holdings in SOXX, combining for over 26% of the fund's roster. Fortunately for SOXX investors, this semiconductor ETF is not heavily allocated to Micron Technology (NASDAQ:MU), a stock that has been absolutely drubbed in recent sessions.The larger-cap weighting may help undercut some of the volatility in store for semiconductor ETFs and stocks if the U.S.-China trade war continues. VanEck Vectors Semiconductor ETF (SMH)Expense ratio: 0.35% per yearIn general, semiconductor ETFs are focused funds and the VanEck Vectors Semiconductor ETF (NYSEARCA:SMH) is even more focused than rival SOXX. This semiconductor ETF is home to 25 stocks, compared to 30 in SOXX. Click to Enlarge Source: Shutterstock Like SOXX, SMH is somewhat top-heavy, but there are some differences among the semiconductor ETFs' components.The VanEck fund devotes a combined 24.47% of its weight to Taiwan Semiconductor (NYSE:TSM), Intel (NASDAQ:INTC) and NVIDIA. * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip SMH's large allocations to semiconductor names like Intel and Taiwan Semiconductor put the fund front-and-center at demand trends for personal computers and related devices as well as mobile phones. SMH's top 10 holdings, a group combining for over 58% of the fund's weight, do not include Advanced Micro Devices. SPDR S&P Semiconductor ETF (XSD)Expense ratio: 0.35% per yearThe semiconductor ETFs mentioned above are cap-weighted funds, but the SPDR S&P Semiconductor ETF (NYSEARCA:XSD) is an equal-weight ETF, a strategy to consider for investors looking for exposure to mid- and small-cap semiconductor names. Click to Enlarge Source: FlickrNone of XSD's 34 holdings exceed weights of 5.79%. Additionally, this semiconductor ETF featured Advanced Micro Devices as its largest holding, a trait not widely found among funds in this category.Owing to the equal-weight methodology, XSD does not feature Intel nor Texas Instruments among its top 10 holdings, making this semiconductor ETF one to consider for investors looking to diversify away from some of the industry's largest names.Invesco Dynamic Semiconductors ETF Expense ratio: 0.61% per yearKeeping with the theme of semiconductor ETFs with non-cap-weighted methodologies, there is the Invesco Dynamic Semiconductors ETF (NYSEARCA:PSI). PSI offers a truly smart beta approach to semiconductor stocks. Click to EnlargeThe Dynamic Semiconductor Intellidex Index, PSI's underlying benchmark, evaluates "companies based on a variety of investment merit criteria, including: price momentum, earnings momentum, quality, management action, and value," according to Invesco.PSI's exposure to the quality and value factors, in particular, could be of use to investors at a time when analysts and market observers are concerned about the semiconductor industry's outlook into year-end.Additionally, semiconductor stocks are viewed as somewhat overvalued relative to broad equity benchmarks, so PSI's value exposure could be a trait to embrace. Twenty-seven percent of the fund's holdings are classified as value stocks. * 7 Dependable Dividend Stocks to Buy PSI's price-to-earnings ratio of 27.77 is above the comparable metric on SOXX. First Nasdaq Semiconductor ETF (FTXL)Expense ratio: 0.60% per yearThe First Nasdaq Semiconductor ETF (NASDAQ:FTXL) is another smart beta approach to semiconductor ETFs, but with a different approach than the aforementioned PSI. Click to Enlarge Source: Shutterstock FTXL turns two years old this month, making it the youngest semiconductor ETF highlighted here. The fund tracks the Nasdaq U.S. Smart Semiconductor Index. That index employs low volatility, growth and value factors in its stock selection process.FTXL's value trait focuses on cash flow-to-price, while its growth factor emphasizes price appreciation over four time-frames -- ranging from three to 12 months. Even with its smart beta methodology, FTXL's 28 holdings tilt toward the largest semiconductor stocks with Texas Instruments and Intel combining for 15.32% of the fund's weight. SPDR Kensho Intelligent Structures ETF (XKII)Expense ratio: 0.46% per yearThe SPDR Kensho Intelligent Structures ETF (NYSEARCA:XKII) is not a pure semiconductor ETF, but the fund does feature sizable exposure to chip stocks. Among the 14 industry groups represented in XKII, semiconductors is the second-largest at 12.11%. Click to Enlarge Source: Shutterstock XKII components provide exposure to following next-generation investment themes: smart building infrastructure, smart power grids, intelligent transportation infrastructure and intelligent water infrastructure. * 10 Stocks to Sell for an Economic Slowdown XKII's underlying index "goes beyond well-known traditional Industrial firms by including companies involved in intelligent and connected home technologies, smart power grid technology, road sensors, traffic management infrastructure and smart water meters from other GICS sectors," according to State Street Global Advisors (SsgA). ROBO Global Robotics & Automation Index ETF (ROBO)Expense ratio: 0.95% per yearThe ROBO Global Robotics & Automation Index ETF (NASDAQ:ROBO), along with other robotics ETFs, feature some semiconductor exposure because chips are integral parts of many of the products tied to the booming artificial intelligence and robotics investment themes. Click to Enlarge Source: Shutterstock Nearly half of ROBO's 87 holdings are classified as technology stocks. That group includes companies with exposure to artificial intelligence, computer processing, actuation, sensing and integration. All of those endeavors require some use of semiconductors."Some investors still see robotics and AI as niche investments," said ROBO Global. "But more and more, even the most risk-averse among them are realizing that it is a niche that demands a presence in every long-term portfolio. Why? Because the scope of robotics and AI is vast, and the massive impact it will have on every industry in every part of the world is now undeniable."As of this writing, Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * Should You Buy, Sell, Or Hold These 7 Medical Cannabis Stocks? * 7 Strong Buy Stocks With Over 20% Upside * 7 Reasons Stock Buybacks Should Be Illegal The post Top 7 Semiconductor ETFs to Buy Now appeared first on InvestorPlace.
Nvidia's (NASDAQ:NVDA) first-quarter results left a lot to be desired despite beating analyst estimates. While revenues and earnings were better than expected, the top line still saw a 31% decline over the same period last year, sending Nvidia stock to $133 before recovering throughout June.Source: Shutterstock As I write this, the Nvidia stock price is 34% higher than its 52-week low of $124.46 and 43% lower than its 52-week high of $292.76. While it's almost a certainty Nvidia stock won't hit its 52-week high anytime soon, the idea of it hitting its January lows remain on the table for the remainder of 2019. What Nvidia reports in August will have a significant bearing on the future direction of its stock price.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip A Closer Look at NVDA StockMy InvestorPlace colleague Tom Taulli recently weighed in on Nvidia's stock price suggesting that in the near-term, NVDA will face significant volatility, due in large part to the terrific job Advanced Micro Devices (NASDAQ:AMD) CEO Lisa Su is doing to innovate at a rapid pace, taking market share from some of its bigger rivals including Nvidia. There is no question that AMD is turning heads, but Nvidia needn't worry that it's losing a little business to Su. Instead, it should continue investing in R&D to innovate its way out of its latest slowdown. To do that it's got to continue generating free cash flow, the one thing it's got that AMD doesn't. AMD can't afford to make any mistakes at this point. If it does slip up, investors will punish its stock, customers will think twice about buying its product, and profits will become losses in a hurry. The Free Cash Flow AdvantageIn my most recent article about Nvidia, I couldn't stress enough how important it is for the company to generate free cash flow. It's the fuel that drives innovation. Without it, you're hopelessly stuck in neutral. I love companies that generate free cash flow. It's even better if they can grow FCF by double digits over the long haul. Those that can see their stock prices go higher over time; those that can't see their stock prices go lower. It's that simple. So, come Aug. 15, Nvidia needs to demonstrate that it's doing what's necessary to maintain its current levels of free cash. It doesn't need to be hitting it out of the park (given recent sales declines we know that's not happening) but it does need to show that it's got a handle on the cash going out the door. In the first quarter, Nvidia saw a significant drop in its free cash flow. In Q1 2019, Nvidia had $1.33 billion in free cash flow. In Q1 2020, it dropped by 55% to $592 million. Naturally, its non-GAAP earnings per share in the same period fell by 57%. The two usually go together. Where will it be after the second quarter?After two quarters in fiscal 2019, Nvidia's free cash flow was $2.11 billion, up from $879 million a year earlier. FCF was 33% of its revenue for the first six months of the fiscal year. In fiscal 2018, its FCF for the first six months was 21% of $4.17 billion in sales.In Q1 2020, free cash flow was just less than 27% of its $2.22 billion in revenue. I expect that Nvidia's second-quarter will come in somewhere in the 20s, hopefully, higher than lower.Analysts expect Nvidia to generate revenues of $11 billion in 2020. Based on a 25% rate of free cash flow generation on the year, Nvidia should still be able to deliver almost $3 billion in FCF. AMD on a trailing 12-month basis used $251 million in free cash flow. Over the past five years, it's averaged -$143 million in free cash flow; I doubt it will be cash-flow positive in its latest fiscal year. So, the fact that Nvidia is trading at 32 times its 2020 earnings compared to 51 times for AMD, and it generates a lot of free cash flow, makes me feel much better about NVDA stock as a long term play. The Bottom Line on Nvidia StockWhen Nvidia reports its Q2 2020 earnings in August, I'll be looking at how much free cash flow it generates from its revenues. If it's in the 20s, I wouldn't be concerned. If it's lower than that, I'd begin to reassess why you own its stock. Long term, Nvidia's a great hold. However, as my colleague said, it's going to see some volatility over the next few months and into 2020.At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip * 7 Services Stocks to Buy for the Rest of 2019 * 6 Stocks to Buy and 1 to Sell Based on Insider Trading The post Free Cash Flow Is the Key to Whether or Not Nvidia Stock Is a Buy appeared first on InvestorPlace.
Advanced Micro Devices (AMD) investors have enjoyed stellar returns so far in 2019. Year-to-date the stock has exploded by 82%. But now is the time for caution, advises five-star Mizuho Securities analyst Vijay Rakesh.This top-performing analyst has been a long-time AMD bull- upgrading the chip stock from Hold to Buy back in December 2016. However, Rakesh is now moving to the sidelines due to the stock’s increasingly pricey valuation. That’s despite a price target boost from $33 to $37, which from current levels indicates upside potential of just over 10%.In a July 18 report, the analyst tells investors “While we continue to like AMD with a solid Ryzen/Rome portfolio and new product ramps, we are downgrading to Neutral after a stellar 80%+ run-up YTD.” In comparison, the semiconductor tracking index SOX is up just 30%. Indeed, the last time AMD was at these levels was in January 2006 with the Opteron cycle, and before that, back in 2000.As a result, the analyst sees limited near-term upside potential for AMD. Rakesh explains: “With the stock past our PT and at 10-yr high, we see 2H upside more limited with 1) 1H19 PC pull-in, 2) slower 2H Rome ramps, and 3) overall 2H server/spending inline combined with INTC pricing pressure.”Most notably, AMD’s larger rival Intel (INTC) is getting more aggressive with DC/Server pricing with discounts and upgrades to 4S servers. According to Rakesh, INTC could be approving higher 15%+ "meetcomp discounts" as it competes with AMD versus historical ~5% discounts. Plus it is also shifting to 4S/8S socket servers as AMD does not have a 4S server offering. “We also believe [Intel’s] 8GPU servers are up 15-20% with increasing demand and 16GPU servers ramping into mass production at a higher price point” adds the analyst. And even though AMD started 7nm production Rome shipments in 2Q/June, the analyst expects product volume ramps only later in 4Q19/1Q20.With this in mind, Rakesh concludes “We are moving to the sideline near-term, lowering our 2H estimates, and adjusting PT to $37 (prior $33) given good execution and improving SOX multiples.” However, AMD supporters can take heart from the fact that the bull thesis remains intact. Indeed, Rakesh is clear that he would re-examine his current call should prices pullback: “We would revisit at a more attractive entry point as the we believe long-term 7nm Server/DT roadmap still intact” he says. So watch this space. Word on the StreetOverall we can see that the Street has a relatively optimistic Moderate Buy analyst consensus on AMD. In the last three months, 13 analysts have published buy ratings on the stock vs 8 hold ratings. However the average analyst price target of $33.53 paints a more troubling picture, suggesting 0.2% downside potential for the stock from current levels. The stock’s biggest bull right now is Rosenblatt’s Hans Mosesmann with a $42 price target (25% upside potential). The analyst writes: “We expect AMD’s roadmap to continue to improve in the coming years while Intel’s desktop CPUs likely stagnate at 14nm++ until 7nm is available in 2022.”
(Bloomberg) -- Taiwan Semiconductor Manufacturing Co. projected current-quarter revenue ahead of estimates, as the Apple Inc. supplier shrugs off a smartphone slump and U.S. sanctions on Huawei Technologies Co. to ride demand for cutting-edge chips.The world’s largest contract chipmaker expects sales of $9.1 billion to $9.2 billion in the September quarter, ahead of average projections for about $8.9 billion. The Taiwanese company earlier reported a fall in June-quarter net income to NT$66.8 billion ($2.1 billion), surpassing the NT$65.7 billion estimated.TSMC’s solid outlook may allay fears of a persistent global chip downturn as Washington and Beijing clash. Its technological edge in chipmaking may help it grab an outsized portion of demand for advanced high-performance semiconductors, particularly as countries roll out ultra-fast fifth generation wireless networks. TSMC’s business has bottomed and should begin to rebound, Chief Executive Officer C. C. Wei said.“We have passed the bottom of the cycle of our business, and should see our demand increase,” he told reporters in Taipei Thursday. “We see very, very strong demand” in the second half of 2019.Click here to read a liveblog of TSMC’s post-announcement briefingOrders for crypto-mining gear are expected to help TSMC’s third-quarter sales, according to Morgan Stanley, which recently lifted its target price on the stock by 9%. The typical year-end ramp up of iPhone manufacturing and a new chip-product cycle from Advanced Micro Devices Inc. could also buoy the top line.“The guidance shows that management is confident on the recovery of demand in 2H, possibly boosted by new orders from AMD,” Bloomberg Intelligence Charles Shum said. “And, we expect the gross margin can return to 50%” by the fourth quarter.TSMC and its industry peers are grappling with a plateauing smartphone market, efforts by top customer Apple to move beyond hardware, and U.S. tech-export curbs that have hammered No. 2 customer Huawei. It previously reported a 4.5% slide in first-half revenue -- its worst January-to-June performance since 2011.While top executives expressed confidence that things are turning around, they warned of uncertainty springing from global trade tensions. Japan’s curbs on the export to South Korea of certain vital chipmaking materials could hammer industry players like Samsung Electronics Co., and further depress global smartphone demand.“The recent Japan-Korea dispute is probably the most uncertain” factor for TSMC’s fourth quarter, Chairman Mark Liu said.As the world’s largest player in the business of made-to-order chips, TSMC is a barometer for the broader industry as well as Apple, which accounts for about a fifth of its revenue. While uncertainty remains, its better-than-projected outlook underscores expectations the industry is bottoming out after a dismal few years, when consumers took longer to replace their smartphones and Bitcoin prices collapsed.The company on Thursday signaled its intention to invest for the future, saying its spending on capacity and upgrades could exceed $11 billion this year.TSMC’s shares stood largely unchanged before the announcement and have gained more than 12% this year.(Updates with commentary around Japan and Korea from the 7th paragraph.)\--With assistance from Cindy Wang, Gao Yuan, Sheryl Tian Tong Lee and Adela Lin.To contact the reporter on this story: Debby Wu in Taipei at firstname.lastname@example.orgTo contact the editors responsible for this story: Edwin Chan at email@example.com, Colum MurphyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- All eyes will be on Taiwan Semiconductor Manufacturing Co.’s outlook after the world’s largest contract chip manufacturer suffered its worst sales drop in nearly eight years.Analysts expect the company’s third-quarter estimates -- due today after the close of trading -- to point to a revival after it took a hit from slowing demand amid U.S.-China trade tensions. At stake is the stock’s $35 billion rebound in market value since a January low.Apple Inc.’s ramp up of iPhone manufacturing and a new product cycle from Advanced Micro Devices Inc. are seen by Bank of America Merrill Lynch analysts to lift sales, which would also be boosted if President Donald Trump loosens trade restrictions on key customer Huawei Technologies Co.TSMC’s Sales May Swing Back to Growth on Huawei Orders: ReactAnalysts have forecast sales in the period to grow 15% from a quarter earlier, according to the average of 22 estimates compiled by Bloomberg. The company’s shares are up 12% this year, despite being whipsawed as the trade war escalated. They edged 0.6% higher Thursday morning.“The company’s second-half outlook looks to be improving, and third-quarter guidance will probably be strong given that some of the lingering uncertainty has started to fade,” said John Tsai, portfolio manager at Eastspring Investments Ltd. in Singapore. The trade spat between Japan and South Korea may also help TSMC, as Samsung Electronics Co. customers such as Qualcomm Inc. may seek to diversify, he added.TSMC saw sales drop 4.5% year-on-year in the first half, its worst performance since 2011. The company was grappling with the impact of a slowing global smartphone market and efforts by its biggest customer Apple to move beyond hardware. Then the trade war escalated into the U.S. blacklisting Huawei, TSMC’s second-largest customer.Yet its leading position in advanced technology, especially in 5G and artificial intelligence, helped it secure revenue. Chip orders for crypto mining are also expected to help TSMC’s third-quarter sales, according to Morgan Stanley, which recently lifted its target price on the stock by 9%.TSMC investors will also receive a NT$207 billion ($6.7 billion) dividend payout Thursday, according to stock exchange and company statements. The company is aiming for a dividend per share of at least NT$10 to lure value investors, something Bank of America Merrill Lynch analysts Robin Cheng and Mike Yang see as possible in 2020. They argue that rising free cash flow justifies a re-rating of the stock.Here are some highlights of 3Q 2019 estimates:Gross margin: 48.3% (19 estimates)Revenue: NT$276.6b (22 estimates)Net income (GAAP): NT$96.04b (20 estimates)Operating profit: NT$103.5b (15 estimates)Timing: release after market July 18(Updates prices.)To contact the reporters on this story: Cindy Wang in Taipei at firstname.lastname@example.org;Debby Wu in Taipei at email@example.comTo contact the editors responsible for this story: Sofia Horta e Costa at firstname.lastname@example.org, David Watkins, Philip GlamannFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Chief Technology Officer & EVP of Advanced Micro Devices Inc (30-Year Financial, Insider Trades) Mark D Papermaster (insider trades) sold 30,000 shares of AMD on 07/15/2019 at an average price of $33.34 a share. Continue reading...
In the latest trading session, Advanced Micro Devices (AMD) closed at $33.85, marking a -1.57% move from the previous day.
SANTA CLARA, Calif., July 16, 2019 -- AMD (NASDAQ: AMD) announced today that it will report second quarter 2019 financial results on Tuesday, July 30, 2019 after the close of.
Shraes of Advanced Micro Devices (NASDAQ:AMD) broke out to fresh multi-year highs yesterday. AMD stock finally closed above the $34 level after three previous failed tries. Momentum traders rejoiced, although shares did finish slightly off the highs of the day.Advanced Micro Devices has now added on over 30% since the lows near $26.50 in late May. All good things must come to an end, though. The red-hot rally in an overbought and overvalued AMD has come too far, too fast. Time to take some chips off the table.InvestorPlace contributor Jay Yao recently pointed out both the bullish and bearish case for AMD stock. He noted that AMD stock price was comparatively expensive, trading at a forward P/E of 33. Advanced Micro Devices is certainly expensive on trailing P/E basis with shares now sporting a multiple of 137! This is by far the richest valuation over the past year. The only other time AMD exceeded a 125 trailing P/E was in June, which marked a significant short-term top in the stock price.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Click to EnlargeAdvanced Micro Devices is looking overdone from a technical perspective as well. AMD stock price is up over 80% year-to-date. Momentum is approaching an extreme reading near 5 which has corresponded to powerful pullbacks in the past. Bollinger Band Percent B is back above 1, signaling overbought levels.AMD stock is trading at a large premium to the 20-day moving average. Previous instances when AMD traded at such a large premium led to a move back to the 20-day moving average. Click to EnlargeEarnings for Advanced Micro Devices are due in late July with expectations for 9 cents in EPS on $1.52 billion in revenues. The last four quarters have seen AMD earnings come in within a penny or two of expectations. Given the historically rich valuations and overbought technicals, it will take a blow out quarter to propel AMD appreciably higher. I don't see that happening. Click to EnlargeStock traders should look to short AMD on any further strength. The initial price target is the 20-day moving average near $31.Option traders may want to take advantage of high implied volatility in front of earnings and sell an out of the money bear call spread. Selling the Aug $38/$40 call spread would bring in 40 cents credit while risking $1.60 for a 35% return on risk. The $38 strike price provides a 10.5% upside cushion to the $34.39 closing price of AMD.As of this writing, Tim Biggam did not hold a position in any of the aforementioned securities. Anyone interested in finding out more about option-based strategies or for a free trial of the Delta Desk Research Report can email Tim at email@example.com. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip * 7 Services Stocks to Buy for the Rest of 2019 * 6 Stocks to Buy and 1 to Sell Based on Insider Trading The post The AMD Stock Rally Has Gotten Way Too Advanced in Front of Earnings appeared first on InvestorPlace.
Advanced Micro Devices Inc NASDAQ/NGS:AMDView full report here! Summary * Perception of the company's creditworthiness is positive * Bearish sentiment is moderate and increasing * Economic output for the sector is expanding but at a slower rate Bearish sentimentShort interest | NegativeShort interest is moderately high for AMD with between 10 and 15% of shares outstanding currently on loan. This represents an increase in short interest as investors who seek to profit from falling equity prices added to their short positions on June 20. Money flowETF/Index ownership | NeutralETF activity is neutral. ETFs that hold AMD had net inflows of $11.14 billion over the last one-month. While these are not among the highest inflows of the last year, the rate of inflow is increasing. Economic sentimentPMI by IHS Markit | NegativeAccording to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Technology sector is rising. The rate of growth is very weak relative to the trend shown over the past year, and has continued to ease. However, the rate of expansion may accelerate in the coming months. Credit worthinessCredit default swap | PositiveThe current level displays a positive indicator. AMD credit default swap spreads are decreasing and near the lowest level of the last three years, which indicates improvement in the market's perception of the company's credit worthiness.Please send all inquiries related to the report to firstname.lastname@example.org.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
Advanced Micro Devices (NASDAQ:AMD) is back at the highs. The AMD stock price cleared $33 last week, something it's managed to do a few times in the past year. Each time, those levels have proven to be bad news for Advanced Micro Devices stock.Source: Shutterstock AMD stock got there for the first time last September, reaching a 12-year high at the time. It immediately dipped. After two more tries, the chip sector as a whole collapsed. The AMD stock price went from $33 to $17 in a matter of weeks.AMD stock briefly touched $34 last month. It fell promptly declined 15% over the next five sessions.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIt's pretty clear that levels around $33-$34 have proven to be resistance for the AMD stock price. The question now, particularly with Q2 earnings on the way in two weeks or so, is whether this time will be different. * 7 Dependable Dividend Stocks to Buy The Risks to the AMD Stock PriceThere are three reasons to see current levels as potentially risky for Advanced Micro Devices stock. The first is precisely that history, particularly in the context of chip stocks more broadly. Big earnings from Micron (NASDAQ:MU) have helped boost the sector in recent weeks, admittedly.But semiconductor stocks have seen quite a bit of volatility over the past year. Micron may have touted optimism - but Broadcom (NASDAQ:AVGO) did largely the opposite. Even before those reports, this has been a space where investors are best off zigging while the market zags, buying when sentiment turns sour and selling when optimism returns. That's held for AMD as well, obviously, given the stock has doubled from December lows.As such, resistance here may be firm. And that risk is buttressed by fundamental concerns. As I wrote last month, at those June highs, AMD stock isn't cheap. It trades at over 32x next year's consensus EPS. The average Wall Street price target still sits below the current price.Analysts don't always have it right, obviously (that's been particularly true in the chip space over the past eighteen months), but 32x is a big multiple for chip stock. Investors in Nvidia (NASDAQ:NVDA) learned what happens when an investor overpays for growth in such a cyclical industry. If only on a short-term basis, investors in Advanced Micro Devices have learned the same lesson a few times.And the third risk for AMD is the earnings report on the way, likely at or around the end of this month. Expectations clearly are high. AMD has stumbled after earnings in the past - most notably with a 22% decline after the Q3 report in October. AMD needs a big quarter to keep a repeat from occurring this time around. The Case for Advanced Micro Devices StockThe simple answer to all those worries is: so what? AMD stock has climbed the "wall of worry" for years now. After all, this was a $2 stock as recently as 2016, with real fears that the company might eventually declare bankruptcy.That's obviously no longer the case. AMD's new chips have made it a formidable competitor to Nvidia and Intel (NASDAQ:INTC). Intel's repeated mistakes only increase the possibility of more market share gains, more growth, and a higher AMD stock price. And those self-inflicted wounds at AMD's key competitor, along with reports of strong PC sales, suggest Q2 numbers will be impressive.Broadly speaking, this simply is a much better business than it was, and it's a really good business on its own. The "old" Advanced Micro Devices was a second-tier provider of chips for low-priced PCs. But it's now a more diversified player in terms of both PCs and growing end markets like data centers. AMD stock might not be cheap, but it shouldn't be cheap. The Bottom Line on Advanced Micro Devices StockBoth sides can make a strong case at the moment, which makes Q2 earnings particularly important. Technically and fundamentally, AMD stock is likely to move further in whatever direction it trades after the report.Big numbers lead to higher earnings estimates and likely a series of analyst upgrades that can further goose the stock. That, in turn, pushes AMD through resistance, which usually (though not always) triggers higher prices.Anything less, however, and history suggests Advanced Micro Devices stock could have a problem. We've seen AMD move from $33+ to under $30 in a blink. Bad news, or even an outlook that doesn't quite match currently optimistic expectations, could do the same, or worse.All told, I'd expect that a month or two out, AMD stock isn't trading at $33. But which way it moves will depend largely on what kind of story Advanced Micro Devices can tell with its second-quarter report.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dependable Dividend Stocks to Buy * 10 Stocks Driving the Market to All-Time Highs (And Why) * 7 Short Squeeze Stocks With Big Upside Potential The post Advanced Micro Devices Stock Could Be Set to Finally Bust Through appeared first on InvestorPlace.