30.05 0.00 (0.00%)
Pre-Market: 7:11AM EDT
|Bid||30.00 x 2900|
|Ask||30.07 x 2200|
|Day's Range||29.65 - 30.47|
|52 Week Range||16.03 - 35.55|
|Beta (3Y Monthly)||3.18|
|PE Ratio (TTM)||166.02|
|Earnings Date||Oct 22, 2019 - Oct 28, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||33.12|
Stocks are flirting with record highs, and investors will be monitoring this week's consumer confidence data and Nike earnings.
This week, at its European launch of EPYC Rome in Rome, Italy, AMD announced the addition of a new CPU to the Rome family: the EPYC 7H12 processor.
When Advanced Micro Devices (AMD) released its 7nm processing chips, the semiconductor world knew the new development would shake the industry. While AMD, for some time now, has increasingly taken market share away from rival Intel (INTC) and has posed a larger threat to Nvidia (NVDA), the release of the new chip has made AMD an even more formidable competitor. Indeed, in a research note issued yesterday, Susquehanna analyst Christopher Rolland remarked that AMD continues to grab market share in the industry. Yet, the analyst remains sidelined on the stock, maintaining a Neutral rating and $34 price target, which implies about 14% upside from current levels. (To watch Rolland's track record, click here)Rolland says “AMD has surpassed 20% CPU share in desktops,” following the release of its 7nm Ryzen CPU. The new chips compete better against Intel’s, and the smaller size (7nm vs 10nm) makes them more energy efficient, while also priced more competitively.AMD is also increasingly threatening Nvidia’s place in the graphics market. While Rolland says AMD’s 7nm Navi GPUs contributed to “modest” share gains, the analyst notes “AMD continues to ramp up their consumer GPU efforts,” which will continue to play a role in competing with Nvidia. However, the big question for Rolland right now is whether AMD has visibility into "massive 4Q sequential growth, or are they setting themselves up for another downward revision?" While the market share story is still progressing, the analyst believes the latter scenario is more likely. Given his skepticism, the analyst remains neutral on the stock.The majority of the Street sides with Rolland's cautious take on the chip giant. Out of 22 analysts polled by TipRanks in the last 3 months, 8 are bullish on AMD stock, 13 remain sidelined, while only one is bearish on the stock. With a return potential of nearly 11%, the stock's consensus target price stands at $33.17. This suggests that, for now, the bulls still win on AMD. (See AMD's price targets and analyst ratings on TipRanks)
If you bought Advanced Micro Devices (NASDAQ:AMD) stock at the end of last year, you're probably still pretty happy with its performance. Year-to-date the gain in the AMD stock price has been nearly 65%. Since the end of July, it has been a different story, though.Source: JHVEPhoto / Shutterstock.com After recovering from a post-earnings bath, AMD stock is down 11.5% since its July high of $34.39, after shedding another 1.84% on Wednesday for a $30.42 close. In fact, since the end of July, the stock is being significantly outperformed by both of its key rivals: Intel (NASDAQ:INTC) and Nvidia (NASDAQ:NVDA).If you bought Advanced Micro Devices stock when it crashed last fall after the bottom fell out of the cryptocurrency mining market, that's one thing. Good call. But what about now? Does this slide mean it's time to make a long-term investment in AMD?InvestorPlace - Stock Market News, Stock Advice & Trading Tips Advanced Micro Devices Has Been a Company On the RiseThe story of Advanced Micro Devices over the past several years has been one of a company on the rise with a canny CEO, a focus on leapfrogging the competition and some stellar product releases have paid off in a big way. AMD is once again a serious contender against market leaders Nvidia in the graphics card industry, and Intel in PC processors. * 8 Dividend Stocks to Buy for a Recession After falling below 20% of the market for computer processors in 2016, AMD's Ryzen CPUs have helped the company to steadily claw its way up to 30%. A similar pattern has been showing in the market for computer video cards. AMD had dropped to 20% of global sales by 2015, but advanced new Radeon releases have pushed it to 32% of the market against Nvidia's 68%. Advanced Micro Devices has also scored the contracts to supply custom GPUs for the forthcoming PlayStation 5 and Xbox Scarlett game consoles.The out-of-this-world demand for video cards by cryptocurrency miners was a bonus that lit a fire under AMD stock. When the inevitable crash came last fall -- bringing a glut of unsold video cards -- it hurt, but it hit Nvidia just as badly. By this summer, the crypto hangover had been left behind with an AMD stock price that crept past its crypto-era peak. NVDA and INTC Are Currently Outperforming AMD StockThings got a little hairy for AMD stock at the end of July. The company reported Q2 earnings after the bell on July 30. Despite hitting earnings targets and beating analyst expectations for revenue, the fact that revenue declined 13% compared to last year caused some consternation. AMD also revised its full-year 2019 guidance, reducing its revenue gain to a mid-single-digit increase over 2018, after previously setting it at a high single-digit increase.The market did not react well to this news, and Advanced Micro Devices stock was walloped, closing down 10% the next day. Within a week, it had dropped below $28. That was followed by a wild ride in August, when AMD clawed its way back to pre-earnings levels, then went on a roller coaster ride while continually losing ground.At this point, AMD stock is once again down 10% from July 30 -- the day it reported Q2 earnings. During the same period, NVDA is up 2.6%, while INTC has held steady. All three stock have been affected by outside forces (most notably the ripple effects of the U.S. trade war with China), but Advanced Micro Devices stock is definitely underperforming compared to the competition. * 10 Excellent Stocks to Watch for 2020 and Beyond Is the Current AMD Stock Price Attractive Enough to Buy?The question potential investors are asking is whether the drop in AMD stock makes now a good time to get in on the action. Analysts have mixed feelings on that front. The trade war could have further impact on sales of computer components and if it worsens, it could trigger a recession -- further cutting consumer discretionary spending on items like new PCs, component upgrades and game consoles. On the other hand, next year should see a recovery in custom GPU sales as PlayStation 5 and Xbox Scarlett production ramp up.Over the past three months, the number of "buy" recommendations has slipped, while "hold" has become the dominant recommendation. With an average 12-month price target of $32.63, that makes sense. Even after the slide since the end of July, at current prices AMD stock has little upside, just 7% or so. If you're hoping to pick up Advanced Micro Devices on the cheap, it probably makes sense to hold on in the hope that AMD slips further.As of this writing, Brad Moon did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 8 Dividend Stocks to Buy for a Recession * 10 Companies Making Their CEOs Rich * The 7 Best S&P 500 Stocks of 2019 So Far The post The Best Way to Approach Advanced Micro Devices Stock As It Drifts Lower appeared first on InvestorPlace.
WinFuture floated a rumor this week that Microsoft’s upcoming Surface Laptop 3 would use AMD's Ryzen Mobile CPU. If true, it could be a big win for AMD.
Microsoft plans to unveil the hardware for its new Surface products on October 2. According to rumors, AMD's Ryzen CPUs could power its Surface Laptop 3.
The rivalry between NVIDIA Corporation (NASDAQ: NVDA ) and Advanced Micro Devices, Inc. (NASDAQ: AMD ) is heating up. Nvidia, which together with AMD dominates the market for graphics chips, is prepping ...
Susquehanna Financial Group says AMD’s desktop market share has grown to 20% so far in the third quarter, versus 19% in the previous quarter and 17% in the prior year.
Should investors consider buying Micron (MU) stock with the chipmaker set to report its quarterly financial results on Thursday, September 26?
Editor's Note: This article was updated to correct some information about Xilinx.For several years, the basic narrative behind the semiconductor space went something like this: Intel (NASDAQ:INTC) provided the premium-end processors, and Advanced Micro Devices (NASDAQ:AMD) was the poor man's Intel. Look at the charts, though, and you'll see that this narrative has changed. AMD has skyrocketed to low-earth orbit, while INTC stock has floundered.Source: JHVEPhoto / Shutterstock.com What has bothered Intel's management team the most, however, was AMD's production acumen. No longer content on dominating the lower-tier processor categories, the smaller semiconductor firm began flexing its muscle. As I mentioned a few months back, AMD stole the show at the 2019 Computex industry conference. With high-level processors designed to compete and steal market share from INTC, Intel stock looked incredibly vulnerable.InvestorPlace - Stock Market News, Stock Advice & Trading TipsHowever, we're starting to see signs that the tide might turn back to Intel's favor. Recently, the company has made substantial progress with its Agilex field-programmable gate arrays, or FPGAs. These are modular chips capable of easy configurations to fit multiple functionalities. As such, FPGAs are incredibly valuable to companies advancing 5G network technologies. That offers synergistic opportunities that can bolster INTC stock.Additionally, Intel claims that the Agilex FPGAs can either impart more performance or less power consumption than its predecessor FPGAs. The company claims that the Agilex is also useful for data centers, which I don't doubt. As a study from Berkeley Economic Review pointed out, Intel has a strong reputation for producing reliable chips. * 10 Recession-Resistant Services Stocks to Buy Best of all, the semiconductor giant snagged Microsoft (NASDAQ:MSFT) as an FPGA client. Naturally, this is a massive development for Intel stock. However, investors remain leery about the equity's choppy manners: can they trust INTC? Comparisons Benefit INTC StockMy answer to the above question is yes. However, it's a nuanced affirmation.Obviously, one of the big challenges with the semiconductor industry is the U.S.-China trade war. If it keeps dragging, as some economists suggest, that may cap growth in the sector. Moreover, I'm eyeballing the economic turmoil in Germany and Europe overall. Combined, these headwinds could devastate consumer demand.That's the bad news for Intel stock. The good news is that the U.S. is locked in a technological race with its adversaries. Now more than ever, we need our big tech firms to innovate. Part of the enthusiasm over the Agilex FPGAs is our collective progress in the space. Additionally, Intel has significantly narrowed the production and distribution gap with rival Xilinx (NASDAQ:XLNX), which leads the sector. Naturally, this benefits INTC stock longer term.Therefore, if you believe that certain semiconductors will perform well even against economic headwinds, you should consider Intel stock. Because compared to its rival AMD, INTC at this juncture may have the better outlook.Yes, I'll concede that AMD has better sex appeal because of their flashy new processors. Also, AMD CEO Dr. Lisa Su engineered one of the most remarkable comebacks in business.At the same time, this is also a "what have you done for me lately" business. And right now, some evidence indicates that AMD may have pushed their products too quickly without proper quality control. In the nearer term, that might not matter much. But over the long haul, it could worry clients.Let's face it: in a recession, you want every dollar to count. Therefore, when organizations invest in data centers, for instance, they want consistent, reliable performance. In that department, Intel has the proven history, bolstering the argument for INTC stock. Technical Comparison Also Supports Intel StockMoreover, if we suffer a recession, I believe the technical argument also supports INTC stock. For one thing, AMD has ripped out another strong year so far, gaining 71% year-to-date. On the other hand, Intel is quite the laggard relatively speaking, up less than 16%. * 7 Stocks the Insiders Are Buying on Sale However, this also helps Intel's case, especially if the markets get choppy. AMD has enjoyed speculative fervor, and for good reason. But Advanced Micro is unlikely to continue generating the kind of exciting news to take shares to even higher plateaus.In contrast, Intel shares have been stuck in sideways trading for most of the trailing two-year period. After so much terrible news, shares may experience an upswing. Also, don't forget that Intel pays you a dividend, giving you some incentive to hold.As I said before, the semiconductor space has risks. But if you're searching in this area, I'd rather go for the beaten-up name with an exciting product pipeline rather than one that has already enjoyed the red-carpet treatment many times over.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 * 10 Recession-Resistant Services Stocks to Buy * 7 Hot Penny Stocks to Consider Now * 7 Tech Stocks You Should Avoid Now The post Why Intel Stock Is the Best Semiconductor Name to Buy Now appeared first on InvestorPlace.
Yesterday, Dell launched five new PowerEdge servers powered by Advanced Micro Devices' second-generation EPYC Rome server central processing units.
Nvidia (NASDAQ:NVDA) stock has seen a nice bump since August. Shares have popped from a low of $148.77 on Aug. 15 to $180.24 at the close Sept. 17. With positive developments in the U.S.-China trade war and improving fundamentals for the GPU space, Nvidia's fortunes may be turning around.Source: michelmond / Shutterstock.com But is there enough left in the tank to send NVDA stock higher? Based on valuation, it seems most catalysts are priced in the stock. Nevertheless, NVDA sells at a discount to GPU rival Advanced Micro Devices (NASDAQ:AMD).So what's the verdict? Let's take a closer look at Nvidia stock, and see why now may not be the time to buy.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Key Developments Driving the Nvidia Stock PriceWeak GPU demand and the U.S.-China trade war. These two factors hammered Nvidia stock. But a turnaround in chip sales and optimism over a trade deal have mitigated these concerns. Improved investor sentiment is driving NVDA stock higher. The question is: Will it last?With regards to GPU demand, Nvidia's sales results for the past quarter show promise. For the quarter ending July 30, revenue rose from $2.2 billion to $2.6 billion quarter-over-quarter. Gaming sales rose 24% from the prior quarter, from $1.1 billion to $1.3 billion. But sales remain down year-over-year. Overall sales were $3.1 billion in the prior year's quarter, including gaming sales of $1.8 billion. Nvidia has a long ways to go before reaching the high water mark set in the prior year. * 7 CBD Stocks to Buy That Are Still Worth Your Investment Dollars How about the U.S.-China trade war? Investors are optimistic, but corporate America remains bearish. The unpredictability of the trade war could continue to impact Nvidia's business. It could also impact an upcoming acquisition. As InvestorPlace's Tom Taulli wrote on Sept. 12, China could block Nvidia's proposed acquisition of Mellanox (NASDAQ:MLNX). The Mellanox deal is seen as a positive catalyst for NVDA. The deal would bolster Nvidia's data center business, and help it diversify away from GPUs.But what about artificial intelligence? The rise of AI could be Nvidia's saving grace. On Sept. 13, InvestorPlace's Jamie Johnson pointed out how Nvidia's automotive AI business saw sales grow 30% in the past quarter. AI has yet to reach critical mass, but in the next decade could emerge as a major industry. This would give Nvidia stock a clear pathway to growth.However, as seen below, this growth potential is clearly reflected in the valuation of NVDA stock. Does this mean shares are overvalued? Let's see how Nvidia's valuation compares to peers. NVDA Stock Remains OvervaluedDespite declining sales since 2018, Nvidia stock remains richly priced. The company's forward price-to-earnings ratio is 25.5. Nvidia's enterprise value/EBITDA is 40. But shares continue to trade at a discount to rival AMD. AMD stock trades at 28.3 times forward earnings, and has an EV/EBITDA ratio of 67.Does this mean Nvidia stock is undervalued? Possibly, but it could indicate AMD remains overvalued. Both stocks trade at premiums to broad-line chip makers like Intel (NASDAQ:INTC) and Broadcom (NASDAQ:AVGO). Intel's forward P/E is 11.6, and its EV/EBITDA ratio is 7.6. Broadcom trades at a forward P/E of 12.4, and a EV/EBITDA ratio of 14.3.As I have stated before, I do not understand the high premium assigned to GPU makers relative to broad-line chip makers. As seen from the global GPU glut, substantial sales growth is uncertain. Long term, I can easily see both NVDA and AMD trade at valuations similar to INTC and AVGO. Maybe not as cheap as Intel stock, but certainly at similar EV/EBITDA ratios as Broadcom. It's Tough To Predict Nvidia Stock's FutureAll bets are off with Nvidia stock. While the company has seen improvements in its overall business, sales remain down from the prior year. There's light at the end of the tunnel for the trade war, but uncertainty remains. Nvidia next announces results in November. The analyst community sees quarterly sales at around $2.9 billion. China could give their blessing to the Mellanox deal. If so, the deal could close at the end of 2019.So what's the play with Nvidia stock? I have been on the sidelines since July, and shares have traded sideways since. If the company can reach the high water mark set last year, shares should see material improvement. But until then, sideways trading between $150-$200 per share is likely. Continue to stay on the sidelines with Nvidia stock.As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 CBD Stocks to Buy That Are Still Worth Your Investment Dollars * 5 Stocks to Buy With Great Charts * 5 Goldman Sachs Stocks to Buy with Over 20% Upside Potential The post All Bets Are Off With the Nvidia Stock Rally appeared first on InvestorPlace.
After the stock bottomed at $120 in June, Microsoft Corporation (NASDAQ:MSFT) shares traded to new highs at $141.68. But since August, the stock is stuck in a very narrow trading range at $136. Microsoft stock still is modestly high but the P/E has room to expand.Source: gguy / Shutterstock.com Expect Microsoft to report a strong Q1 report next month, following last quarter's (Q4) results. In the last period, the company reported double-digit growth from all but one segment.Its Intelligent Cloud division grew 19% year-on-year, while the More Personal Computing grew 4%. Still, the gross margin of 15% is a 2 point improvement. At an EPS of $1.71 or an annualized P/E of 19.9 times, MSFT stock borders on being too cheap to ignore.InvestorPlace - Stock Market News, Stock Advice & Trading TipsInvestors may hunt for inexpensive technology stocks like Intel (NASDAQ:INTC), whose P/E is 12.2 times. But Intel faces elevating competitive pressures from AMD (NASDAQ:AMD), so the stock reflects the uncertainties ahead.Microsoft has strong bookings growth in the commercial space. In Q4, bookings grew 25%, with the commercial revenue annuity mix accounting for 90% of that total. * 7 CBD Stocks to Buy That Are Still Worth Your Investment Dollars The software giant is in the sweet spot of enjoying recurring revenue. Its commercial cloud revenue, which made Microsoft $11 billion in revenue, enjoyed a gross margin of 65%. Growth Catalysts and Microsoft StockMicrosoft has many growth catalysts to count on in the next quarter and in 2020. Office software sales are benefiting from commercial clients signing up for Office 365, and on the consumer market, revenue grew 6% in the last quarter. Microsoft now has 34.8 million consumer subscribers. With the Apple (NASDAQ:AAPL) smartphone refresh and Android suppliers like Samsung and Xaomi launching new devices, expect more Office 365 sign-ups next year.The intelligent cloud space enjoys even better growth. Azure revenue grew 64%, which suggests Microsoft is taking market share from Amazon.com's (NASDAQ:AMZN) AWS.Although hardware sales contribute to only a small part of revenue, it too is growing. Surface revenue grew 18% in Q4/FY2019. Microsoft will host the next Surface event, slated for Oct. 2.Announcing a refreshed Surface, one year after the last launch and ahead of the holidays may prove timely. Last week, Apple announced a new iPad and MacBook Air. Microsoft may announce a Surface Pro 6 hybrid, an updated Surface Go tablet, and a Surface laptop. Personal Computing and Microsoft StockThe Windows operating system is still at the core of the company's growth ambitions. Commercial markets still need new PCs every few years and a stable operating system.As the market prepares for the end of Windows 7 support, expect a surge in sales of Windows 10 software. And even though Surface device sales brought in $2.05 billion, down from $2.29 billion last year, look for Microsoft to enjoy the hype for these products. If Surface devices become the standard for the hybrid notebook and tablet form factor, it has a good chance of taking Apple's iPad market share.Apple claimed 38.1% of the global tablet market in the second quarter. Samsung, Huawei, and Amazon claim the number two to four positions. Microsoft is not on the list. If IDC does not consider the Surface as a tablet, it does not matter. Microsoft needs to convince consumers and businesses to choose a Surface or Surface Go device over an iPad for work purposes. The Bottom Line on Microsoft StockAnalysts who offer a 1-year price target on MSFT stock think the stock is worth $153.77. This is ~13% above the recent price of $136.33. Various DCF EBITDA and Revenue exit models suggest the stock is trading at close to fair value.It will take an uptick in revenue growth in the next quarterly report, due next month in October, to justify a higher stock price. Chances are good that will happen.Disclosure: As of this writing, the author did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 CBD Stocks to Buy That Are Still Worth Your Investment Dollars * 5 Stocks to Buy With Great Charts * 5 Goldman Sachs Stocks to Buy with Over 20% Upside Potential The post Look for Microsoft Stock to See a Big Post-Earnings Pop appeared first on InvestorPlace.
Dell Technologies announces five newly designed Dell EMC PowerEdge servers optimized for the 2nd Gen AMD EPYC processorNokia and IBM Cloud highlight performance advantages of.
Advanced Micro Devices (NASDAQ:AMD) stock is up over 66% in 2019. This is higher than rivals Nvidia (NASDAQ:NVDA) at 36.6% and Intel (NASDAQ:INTC) at 14.1%. AMD stock is also outpacing at least one popular sector exchange-traded fund, the VanEck Vectors Semiconductor ETF (NYSEARCA:SMH) is up about 40%. AMD stock is also besting the S&P 500 index, which is up 20% in 2019.Source: Grzegorz Czapski / Shutterstock.com However, the semiconductor business is notoriously cyclical. Plus, AMD stock has been trading in a tight range for the entire summer. As fall approaches, the smart play may be to place strategic option contracts that will help you take advantage of short-term price movements. Softer Revenue Growth Is Not UnexpectedPrior to the second quarter of 2019, AMD posted soft revenue growth (on a sequential basis) for the prior three quarters. However, on a year-over-year basis, the Q2 results still showed a double-digit revenue decline. Furthermore, analysts suspect that the company will likely face declining revenue due to softness in gaming consoles that could affect its revenue for the rest of 2019.InvestorPlace - Stock Market News, Stock Advice & Trading TipsFor its part, AMD has cut its revenue guidance into the mid-single digits for YOY growth rate. AMD is scheduled to report Q3 earnings on October 29. Analysts are projecting an 8.9% increase in revenue to $1.8 billion. * 7 Momentum Stocks to Buy On the Dip This is not completely unexpected. AMD has not had new products to get investors excited. But that story looks to be changing. New Product Launches Sound LikelyOne of the factors depressing AMD stock has been a product line that is growing long in the tooth. AMD's 400 Series Polaris line of graphics processing units (GPUs) hit the market in 2016. A refreshed 500 Series was introduced in 2017.However, in 2019, rival Nvidia released a competing GPU, the GTX1660 that is helping NVDA rapidly gain market share in the gaming space. A refreshed line of Navi GPU cards, priced competitively at under $250, should help AMD recapture some of this lost share.In the CPU market, the tech publication Techquila reported that AMD has plans to release new 7-nanometer products in the second half of 2019. The first product to launch will be its Ryzen 9 3950X desktop CPU (scheduled for September 30).Then in early October, it plans to launch its third-generation Threadripper CPU line-up (extending to as many as 64 cores). These come on the heels of the Rome EPYS server CPUs in August. These new processors are generating high demand from enterprise and cloud customers (and are potentially stealing market share from Intel). There is Real Growth for AMD Stock Coming in 2020Microsoft (NASDAQ:MSFT) and Sony (NYSE:SNE) are expected to launch their next generation of gaming consoles in late 2020. Pent-up demand from gamers should give the consoles a lift.This sets up well for AMD stock. Wall Street analysts are extremely optimistic about the company's 2020 revenue growth. They expect its revenue to grow more than 24% next year. What's next for AMD stock?Advanced Micro Devices stock is just coming down from its 52-week high of $35.55. And the company's forward price-earnings ratio of just under 29 makes the stock expensive. However, AMD is projecting earnings increases of 37% for 2019 and 68.3% in fiscal 2020 which could account for the elevated ratio.The question for investors is whether the new product launches and higher revenue growth can generate enough momentum to push the AMD stock price higher. Right now, many investors seem to be in "wait and see" mode. That makes some sense. Why buy the stock now if the real growth won't occur until 2020?However, between now and then, there could be a lot of macro-economic catalysts that may give the stock a boost. The Federal Reserve is cutting interest rates. And there may be a breakthrough, or at a least a continued pause in the ongoing trade war with China. And for its part, AMD must post numbers that show the high demand for their servers is not an anomaly.This is where trading options on AMD stock can be an effective trading strategy. Sell puts at a price slightly below the current price and place call slightly above the current price. The puts pay you for buying the stock. In the case of the calls, you can get a weekly or monthly premium.As of this writing, Chris Markoch did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Momentum Stocks to Buy On the Dip * 7 Dow Titans Breaking Higher * 5 Growth Stocks to Sell as Rates Move Higher The post It May be Time to Call an Option on AMD Stock appeared first on InvestorPlace.
If there's one thing I'm constantly telling investors, it's to be patient and to be picky. Take Advanced Micro Devices (NASDAQ:AMD) stock as an example: there are pros and cons to taking a long position right now, and it's not a question of whether it's a good company, but whether the overall picture for AMD stock is favorable at the moment.In the past three months, AMD stock has eked out a measly 1.8% gain while the iShares PHLX Semiconductor ETF (NASDAQ:SOXX) has gained more than 14%. Advanced Micro Devices stock is the 13 holding in the exchange-traded fund's 31-stock portfolio.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAfter weighing the positives and the negatives, I'm still not convinced that investors should jump into Advanced Micro Devices stock today. Lower share prices might convince me otherwise, but for now, my patient-and-picky policy won't permit me to make a move. AMD Stock Sunk by Earnings DisappointmentJuly 31 was, you may recall, not the most encouraging day for owners of AMD stock. With the release of the company's second-quarter earnings report, the Advanced Micro Devices stock price coughed up 4% in after-hours trading, extending this loss to almost 8% at one point during the following day's trading session.What would cause investors to lose faith in AMD so quickly? The adjusted EPS was in line with analyst expectations at 8 cents, so ostensibly that wasn't the issue. No, it was the decline in revenue that sank the Advanced Micro Devices stock price, as it was revealed that AMD's year-over-year revenue declined 13%; graphics sales, an integral component of the chipmaker's business model, were particularly weak in the second quarter. * 10 Battered Tech Stocks to Buy Now To make matters worse, AMD's enterprise, embedded, and semi-custom segment suffered a 12% year-over-year decline in revenues, with semi-custom sales being the main issue. On top of all that, the company announced that it was slashing forward guidance for the remainder of the year; whereas AMD had previously expected revenues to increase in the high single digits through 2019, now they were only expecting revenue growth in the mid single digits. Analysts and Insiders Cast Doubt on Advanced Micro Devices StockPerhaps the experts in the financial markets can shed some light on the short-term future of Advanced Micro Devices stock -- and based on their price targets, the outlook is a bit murky. Among a pool of 35 prominent analysts, their average price objective for AMD stock is just $32.04, which doesn't imply much upside.Moreover, as fellow InvestorPlace contributor Will Ashworth has reported, AMD stock has seen no recent insider buying; this is extremely discouraging, as the people closest to the company itself are privy to important data, and if they're not buying, it makes me wonder whether anyone else ought to be buying.Yet, it's not just the lack of insider buying that bothers me; the magnitude of insider selling is just as worrisome. Among AMD insiders, 1.66 million shares have been dumped over the past three months; over the past year, they've unloaded an astounding 39 million-plus AMD shares.Perhaps most tellingly, AMD president and CEO Lisa Su dumped 128,500 shares of her own company stock in a massive $3.9 million transaction. Even among well-heeled corporate executives, that's a heck of a lot of shares -- and not exactly what I would call an endorsement of AMD stock as an investment. Neither is the move by SVP Forrest Eugene Norrod who shed 50,000 shares in late July. * 7 Momentum Stocks to Buy On the Dip Even beyond the insider clique at AMD, sophisticated investors have been divesting themselves of Advanced Micro Devices shares at an alarming rate. To give you just a few recent examples, First Republic Investment Management Inc. sold 17,675 shares and Canada Pension Plan Investment Board sold off 141,200 shares of AMD stock. The Takeaway on AMD StockI don't want to give you the wrong impression: I still like Advanced Micro Devices as a company and might be persuaded to endorse a long position on AMD stock shares in the future. For the moment, though, I'm waiting for lower prices and, most importantly, a brighter outlook for this chip-market contender.As of this writing, David Moadel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Recession-Resistant Services Stocks to Buy * 7 Hot Penny Stocks to Consider Now * 7 Tech Stocks You Should Avoid Now The post Mixed Signals Means It's Not the Time to Buy Advanced Micro Devices Stock appeared first on InvestorPlace.
Advanced Micro Devices (AMD) closed at $30.99 in the latest trading session, marking a +0.52% move from the prior day.
After topping out at $34 this past July and August, Advanced Micro Devices (NASDAQ:AMD) is holding up at the $30 level. Valuations continue to hamper AMD stock's ascent. It will take a blow-out earnings report to finally put the bulls in full control.Source: JHVEPhoto / Shutterstock.com Even though AMD has the upper hand in the CPU market in both desktops and notebooks against Intel (NASDAQ:INTC), Intel shares are holding up. Intel recently rallied from a $46 low to trade at $52.54 at the end of last week. This suggests that markets believe Intel still enjoys strong prospects in the CPU markets. Yet AMD's latest CPU refresh offers a highly competitive suite of products that could take Intel's market share. It refreshed Ryzen to the third generation, offering seven-nanometer production chips at a higher price to performance over Intel's products.At the macroeconomic level, Intel may face weaker sales as the U.S.-China trade war persists. This will also hurt AMD sales in China. But a weak Q4 sales outlook for Intel will only give AMD market share gain. In 2020, AMD will have more original equipment manufacturers carrying Ryzen third-generation chips.InvestorPlace - Stock Market News, Stock Advice & Trading Tips EPYC Server DemandOn the enterprise front, expect strong demand for AMD's EPYC server chips. The company now claims 14 world records. On a Red Hat Enterprise Linux setup, testers achieved record speeds on several benchmarks. These results should impress information technology departments. So, as enterprises buy cloud-based solutions, they will demand EPYC-powered cloud solutions instead of using Intel's chips. Building Brand AwarenessAMD has a slew of upcoming webinars that will strengthen the company's branding. It will also build support with its channel partners and developers. In September, the company will talk about its powerful mobile solutions in HP systems. At the end of the month, it will talk about the Ryzen 3800X system that is ideal for powering professional gaming and content creation. * 7 Momentum Stocks to Buy On the Dip AMD's partner launches should lead to market share growth, assuming customers pick AMD chips over Intel ones. Last month, Asus announced a pair of ZenBooks that have Ryzen 5 3500U or Ryzen 7 3700U processors. The GPU will also have an AMD Radeon Vega. AMD Stock's ValuationWall Street analysts are modestly bullish on AMD stock. Of the 22 analysts offering a price target, the average price target is $33.17, 8% above its recent close of $30.70 (per TipRanks). Cautious investors may want to build their financial model to estimate the downside fair value on AMD stock. For example, in a five-year Discounted Cash Flow Exit model, investors might assume the trade war will hurt revenue growth. Should revenue fall to the single digits at any time over the next five years, the fair value of AMD is around $26. Conversely, a 20%-25% annual revenue growth rate would imply a fair value of $41.50 for AMD stock. The Outlook for Advanced Micro Devices StockIn the third quarter, AMD issued an outlook that was weaker than expected. Still, its product launches in the last month should reaccelerate its revenue growth. It launched the seven-nanometer EPYC Aug. 7 and custom Radeon RX 5700 XT GPUs later in August. A Threadripper third generation is on the way. And while these new products will not get counted in the upcoming earnings report, they will have a positive impact on its outlook in the quarters ahead.AMD's valuations are unfavorable at this time at the $30 range, but its prospects are bright. Investors will bid the stock higher as they realize the company achieves its revenue growth potential.As of this writing, Chris Lau did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Momentum Stocks to Buy On the Dip * 7 Dow Titans Breaking Higher * 5 Growth Stocks to Sell as Rates Move Higher The post New Products Could Boost Advanced Micro Devices Stock appeared first on InvestorPlace.
During its Q3 earnings statement, Broadcom CEO Hock Tan said semiconductor demand has “bottomed out" in the "current uncertain environment."
AMD (NASDAQ:AMD) received an upgrade from Moody's right before the weekend. This should help reduce the company's debt costs. Later on, it could even help bolster AMD stock.Source: Shutterstock However, while AMD looks like a solid buy on the surface, issues have appeared that should create some doubts. Unless and until these issues resolve themselves, investors should hold out for a discount before buying. The Moody's Upgrade HelpsMoody's took AMD's debt rating to Ba2, up from the previous Ba3. In raising the rating for the AMD corporate family, Moody's cited the company's "design wins" and gains in market share as reasons for the improved performance outlook. AMD stock rose by almost 1.6% to $30.48 per share following the news.InvestorPlace - Stock Market News, Stock Advice & Trading TipsI cannot argue with Moody's rationale on the improved debt rating. Long known as the lower-cost, less-regarded semi manufacturer, analysts should now regard AMD as a full-fledged player in the semi industry. However, the question on the minds of traders is whether that will improve the performance of the stock. * 7 Tech Stocks You Should Avoid Now On the surface, I see few reasons not to buy AMD. The forward price-to-earnings (PE) ratio of just under 29 is not cheap. However, projected earnings increases of 37% this year and 68.3% in fiscal 2020 make the slightly elevated PE ratio worthwhile. Heed AMD's rangeHowever, markets often run up against stubborn price limits, and this has happened to Advanced Micro Devices stock. As I have stated in previous articles, the $34 price ceiling continues to plague AMD. This limit has left it range-bound and the current price of just over $30 per share places the equity in the middle of the range first established in May.Will this range break eventually? In all likelihood, yes. Lisa Su continues to do an outstanding job in taking market leads over Intel (NASDAQ:INTC) and keeping it competitive on the graphics side against Nvidia (NASDAQ:NVDA). That will bolster profit growth and eventually push AMD stock through the price ceiling. AMD Stock Is More Than Just RangeboundHowever, the baffling aspects of AMD stock go well beyond a stubborn price ceiling. Our own Will Ashworth found another issue, namely the lack of insider buying.Over the last year, not a single insider has purchased any Advanced Micro Devices stock. Moreover, insiders sold over 39 million AMD shares during the previous 12 months. That comes in far ahead of the roughly 2.27 million shares sold by Intel insiders and the 491,317 shares of Nvidia sold.InvestorPlace feature writer James Brumley believes that AMD will more than likely move with the market. Much like AMD, the overall market seems to trade in a range as well. The S&P 500 continues to flirt with record highs despite a trade war and a lengthy economic expansion.Brumley also made a point in a previous article about the 7nm Rome processor not living up to the performance expectation. Like Boeing (NYSE:BA) and the 737 MAX, AMD may have caused performance issues by rushing its 7nm processor to market.Many reports have surfaced about Rome not performing as advertised. While I do not think this stops the AMD recovery story, it may make some investors wary of AMD for now. The Bottom Line on AMD StockAMD is not as great a buy as it may appear. When comparing both the Moody's upgrade and the forward PE ratio to the expected profit growth rate, Advanced Micro Devices stock looks like a definite buy on the surface.However, it seems concerning that insiders have not bought into the story. Moreover, doubts about the performance of 7nm Rome could place further pressure on the stock. As a result, traders have seen the same thing happen over the last year--AMD stock reaches the $34 per share range and then sells off.Furthermore, it has remained below the 50-day moving average since August 13th. Unless it breaks out of the current range, investors should only consider buying near the $26 per share level.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Recession-Resistant Services Stocks to Buy * 7 Hot Penny Stocks to Consider Now * 7 Tech Stocks You Should Avoid Now The post Insiders Are Laying off AMD Stock and So Should You appeared first on InvestorPlace.
VanEck Video Gaming and Esports ETF (ESPO) is approaching its one-year anniversary and is doing so with some superlatives on its side. More importantly, ESPO is up about 30% year-to-date. ESPO seeks to track the performance of the MVIS® Global Video Gaming and eSports Index (MVESPO).