|Bid||31.00 x 2900|
|Ask||31.02 x 2200|
|Day's Range||30.29 - 31.33|
|52 Week Range||16.03 - 35.55|
|Beta (3Y Monthly)||3.15|
|PE Ratio (TTM)||171.10|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Varma, Finland’s largest investor, bought the tech stocks in the third quarter, a move that has paid off so far in October. It also purchased Twitter stock, which has slumped.
Enterprise tech has been a hot area for investors in recent years, but the theme works only as long as corporate buyers are paying up for the technology. Goldman Sachs’ September survey of technology sellers showed that demand trends from large corporations have “deteriorated markedly” across all industry verticals, compared with its June survey. “We are taking a more cautious view of enterprise spending and particularly large enterprise-exposed companies,” wrote analyst Rod Hall in Goldman’s report earlier this month.
Advanced Micro Devices (NASDAQ:AMD) continues to earn business as it becomes an increasingly competitive threat to its rivals. However, over the last year, traders appear to have priced in the company's increasing prominence. Consequently, AMD stock has formed a price ceiling that continues to hold.Source: Grzegorz Czapski / Shutterstock.com However, in recent weeks, the stock has fallen to the lower end of its range. Given this decline, investors may benefit from a possible trade, or with a little patience, open a long-term position. AMD Stock Falls as Company Wins New BusinessAMD scored another coup as Microsoft (NASDAQ:MSFT) agreed to use AMD's Ryzen 5 and Ryzen 7 chips in the Surface Laptop 3. This represents another victory over Intel (NASDAQ:INTC), the long-time rival that dominated AMD during the PC era.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Reasons to Buy Canopy Growth Stock These victories have also gained the attention of analysts. Sony (NYSE:SNE) will also use AMD chips in its soon-to-be-released PlayStation 5. This just attracted the attention of Citic Securities. It initiated coverage on AMD stock, giving it a "buy" recommendation and setting the one-year price target at $35 per share.Such wins bolster what our own Dana Blankenhorn refers to as the "legend" of Dr. Lisa Su. Still, despite this success, AMD stock continues its pattern of range-bound trading. After again approaching a mid-$30s per share high in July, it has seen a slow drop since that time. Investors should also note that Citic's $35 per share price target comes close to that ceiling.The good news here is that chartists may have a buy point. Although I do not share the negative sentiment of my colleague Josh Enomoto, I think he states correctly that the honeymoon for AMD stock has ended. Consequently, it has fallen below the 50-day moving average.However, the 200-day moving average has held for years. This average now stands at $27.45 per share, only about $1 per share below the current price of Advanced Micro Devices stock. Expect the Price Ceiling to HoldThis has begun to make AMD stock at least a trade. However, that does not mean that the mid-$30s per share price ceiling will break the next time it moves higher.Given the trajectory of the company, the ceiling cannot hold forever. The forward price-to-earnings (PE) ratio now stands at 28. That comes in slightly higher than the S&P 500 average of around 21.8.At current levels, I think the ceiling can hold. For one, companies like Intel and Nvidia (NASDAQ:NVDA) have begun to take AMD's competitive threats seriously. For this reason, the company must keep innovating, though AMD shows no signs of slowing down.Moreover, I think doubts about the performance of AMD's 7nm chips continue to linger. First came the charges that it could not consistently meet performance benchmarks. Now, production limits with its manufacturer, Taiwan Semiconductor (NYSE:TSM), have led to supply constraints.AMD remains ahead of Intel even with its issues. Also, I do not see any long-term damage to Advanced Micro Devices stock. However, it gives traders yet another reason to question the valuation of AMD stock if it again approaches the mid-$30s per share level. The Bottom Line on Advanced Micro Devices StockGiven the decline, AMD stock has become at least a trade. Thanks to a move back toward the lower end of its range, traders might find opportunity here. As mentioned before, the current AMD stock price stands at about $1 per share above the 200-day moving average. AMD has not fallen significantly below that level in 2019. If it fell to the 200-day moving average, traders have room for about 25% upside even if it again fails to breach the mid-$30s per share level.Current metrics and conditions indicate that it may not break through that upper limit for the foreseeable future. However, Wall Street estimates average growth of 35.81% per annum over the next five years. Hence, from a valuation and growth standpoint, AMD stock is a buy.If AMD does not move significantly higher soon, the falling PE will make that ceiling untenable. At that point, Advanced Micro Devices should shoot much higher.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 * 7 Reasons to Buy Canopy Growth Stock * 7 Restaurant Stocks to Leave on Your Plate * 4 Turnaround Plays to Buy Now The post AMD Stock: Long-Term Investment, Short-Term Trade appeared first on InvestorPlace.
About a week ago, things were looking much simpler for Intel (NASDAQ:INTC) stock bulls. On Oct. 11, the U.S. and China announced a partial deal in the ongoing trade war. This was welcome news for semiconductor stocks such as INTC that have been trading in a range.Source: dennizn / Shutterstock.com However, it quickly became apparent that the trade deal wasn't really a deal at all. It was more of a truce. Both sides made concessions. But there was no agreement on the issues that would make a difference for semiconductor stocks.This means current or prospective investors in INTC stock are back to trading on other news surrounding the stock. Fortunately for Intel, it has recently made a significant investment that may help change the current narrative.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Making a Big Bet on 5GOn Oct. 15, Intel announced an agreement to purchase a software business, Smart Edge, from Pivot Technology Solutions for $27 million. * The 7 Best Penny Stocks to Buy Smart Edge is software that focuses on "edge computing." Edge computing splits data and stores it closer to users, making computing devices respond faster. The software runs on Intel chips. This is allowing Intel to carve out a niche in the 5G space. This will be a critical opportunity to expand its revenue stream beyond its two large business segments of personal computers and data centers."We plan to take full advantage of our combined technologies and teams to accelerate the development of the edge computing market," Dan Rodriguez, a general manager of the network computer division in Intel's data center group, said in a statement. Why Did Intel Stock Drop?Intel stock was trading around $60 per share until it released first-quarter earnings. The company gave downward revenue guidance of $69 billion, which was $2 billion lower than analysts' estimates. Perhaps more concerning to investors is that if that revenue number held it would mark a decline a 2.5% decline in year-over-year revenue. In 2018, Intel posted revenue of $70.8 billion.But the stock lost nearly 25% of its value. Was this a disproportionate response? Perhaps. But what has to be concerning for investors is that INTC stock has attempted and failed to breach a crucial level of resistance at around $53 two separate times.The general consensus is that Intel stock is paying too steep of a price. However, there's a difference between what a stock should be doing and what it actually is doing. The problem for INTC stock has been a steady stream of news that is giving investors pause. Hampered By Production DelaysUnlike most semiconductor companies, Intel manufactures its own chips. This has been a strategic advantage for the company. But at the moment, it is proving to be an obstacle. The company has struggled in its transition from 14-nanometer chips to 10-nanometer chips. When Advanced Micro Devices (NASDAQ:AMD) introduced 7-nanometer chips, original equipment manufacturers became frustrated with Intel's chip shortage and started giving business to AMD. This has been one of many negative drags on the stock.AMD outsources its CPU production to dedicated foundries. One of those is TSMC (NYSE:TSM), which is now ahead of Intel in the manufacturing process. While Intel says it will resolve its 14-nanometer shortage during 2019, DigiTimes recently reported that the shortage may last until next year. INTC Stock Looks Undervalued at the MomentIntel is trading at price-earnings ratio of below 12 (11.88 as of this writing). That is significantly less than rivals Microsoft (NASDAQ:MSFT), AMD and Qualcomm (NASDAQ:QCOM). Those companies have PE ratios of 29.58, 93.66 and 21.20, respectively. But it's also significantly below its historical trading level of 15-times earnings or higher.If INTC stock were valued at 15 times earnings right now, it would have a stock price of approximately $64.50 per share. But it's not trading at that multiple. And analysts predict that INTC will post a decline in non-GAAP earnings for both Q3 and Q4 earnings on a YOY basis. This makes a case that INTC stock could be going down before it goes up.As of this writing, Chris Markoch did not have a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 7 Best Penny Stocks to Buy * 7 Bank Stocks to Avoid Now at All Costs * The 10 Best Mutual Funds for Your 401k The post Has Intel Stock Found a Catalyst? appeared first on InvestorPlace.
As the trading week comes to a close, U.S. equities seem to be in a good news/bad news situation. The S&P 500 bounced back after a modest sell-off on Monday, and is green through the first four days of the week. But yet another effort to hold S&P at 3,000 failed on Thursday morning, and it does seem like stocks should have gained more than 0.3% this week.Source: Shutterstock After all, the news looks reasonably good so far. Earnings from JPMorgan Chase (NYSE:JPM) and other banks have contributed to a solid start to earnings season. The two big fears facing the market -- that this year's fourth quarter would look like last year's sell-off, and/or that Q3 earnings would be a negative catalyst for stocks, as they were in the second quarter -- seem relatively assuaged at the moment.But despite a seemingly bullish setup, U.S. equity markets simply can't put together consistent upside. It remains to be seen whether earnings season will change that. These three big stock charts should give us some clues.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Reasons to Buy Canopy Growth Stock At the moment, the news looks mixed, as do these stock charts. One of the week's biggest earnings reports shows that investors still are concerned about growth stock valuations. So does another one of our big stock charts, which looks downright ugly. Yet elsewhere, investors are willing to pay for quality -- and take on cyclical risk. On the whole, the market hasn't yet made up its mind. Advanced Micro Devices (AMD)Advanced Micro Devices (NASDAQ:AMD) stock is showing some strength heading into earnings, to be released after the close on Oct. 29. A 10%-plus bounce in the last few sessions is good news for several reasons: * Technically, $28 has turned from resistance this spring into support in both early August and this month. Combined with the recent bounce, that sets up a path to re-test resistance in the $34-$35 range, which held earlier this year and in 2018. * Combined with moves elsewhere in the sector, the chart highlights increasing optimism toward semiconductor earnings. AMD stock is rallying. Nvidia (NASDAQ:NVDA), though it doesn't report until November, trades at an 11-month high. So-called 'semi-caps' Applied Materials (NASDAQ:AMAT) and Lam Research (NASDAQ:LRCX) both are at 52-week highs. Those stocks were canaries in the proverbial coal mine ahead of last year's disastrous fourth quarter for semiconductor stocks. * AMD, even with 1,400% gains from 2016 lows, has seen significant drawdowns during the gains of the last few years. Trading for the last six months now suggests that value investors are stepping in at higher levels. That means that some of the volatility seen in 2018 might be in the past. Beyond Meat (BYND)It doesn't take an expert to read the chart for Beyond Meat (NASDAQ:BYND) stock. It's one of the big stock charts right now -- and the ugliest.BYND stock now has dropped by 50% from late July. In retrospect, those gains look an awful lot like a bubble. The question at the moment is how much further BYND has to drop. * At the moment, there's little reason to see a bottom forming. A 5% no-news drop on Thursday only adds to the pressure. BYND stock sits below all of its moving averages, and the gap actually has widened in recent sessions. The chart seems to show a rush for the exits. * Fundamentally, it's not as if BYND is cheap, even at 50% lower. The stock still trades at over 400x 2020 consensus EPS estimates -- and more than 15x next year's sales. * That said, I wrote last month that Beyond Meat is a real company -- with real value. Whether $117 incorporates that value is unclear. The chart shows there is absolutely no need to rush in. Competition is a legitimate concern. But if and when BYND stock can find a bottom, growth investors should at least take a look. Netflix (NFLX)Netflix (NASDAQ:NFLX) stock gained 2.5% on Thursday but it's likely that shareholders are quite disappointed. The initial reaction to the company's third quarter report, delivered after the close on Wednesday, was much more positive. NFLX stock rose 8% in after-hours trading. That makes NFLX one of our big stock charts for reasons that matter to Netflix stock -- and perhaps the market as a whole: * For NFLX stock, Thursday's trading looks problematic. Shares opened the regular session about where they had in the after-hours market. They then faded, rallied, and faded again. A 2.5% gain off a subscriber beat and EPS that came in 42 cents ahead of Street consensus suggests that investors simply weren't that impressed. * The fade from $300+ levels suggests that resistance has been re-established modestly above current levels. That in turn suggests that the rally into earnings gobbled up most of the potential upside in NFLX stock. Without a catalyst ahead until 2020, it's tough to see what leads NFLX to break out. * The response to the report suggests some caution for the many other growth names that have stumbled of late in this market. That includes recent IPOs like Uber (NYSE:UBER) and Lyft (NASDAQ:LYFT), plus SaaS names like Workday (NASDAQ:WDAY) and Splunk (NASDAQ:SPLK). For NFLX at least, investors are seeing the big pullback as a correction, not a buying opportunity. We'll see if they have the same opinion for other former high-flyers.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Reasons to Buy Canopy Growth Stock * 7 Restaurant Stocks to Leave on Your Plate * 4 Turnaround Plays to Buy Now The post 3 Big Stock Charts for Friday: Advanced Micro Devices, Beyond Meat, and Netflix appeared first on InvestorPlace.
Investing.com -- China's economy grew at its slowest rate in nearly 30 years in the third quarter, and Boris Johnson is battling to get his Brexit deal through a recalcitrant House of Commons, while Saudi Arabia has postponed the IPO of national company Saudi Aramco - again. Here's what you need to know in financial markets on Friday, 18th October.
Investors' focus has locked in on semiconductor stocks following news of a potential "phase one" trade deal between the U.S. and China. Many chipmakers do production work in China and/or distribute products to Chinese companies, so the industry has suffered a nasty case of whiplash throughout the two or so years of the two countries' tariff spat.The upside is that the volatility still is coming out on their side. The iShares PHLX Semiconductor ETF (SOXX) has soared nearly 40% year-to-date, doubling the already better-than-average returns for the S&P; 500\. While trade enthusiasm has helped, the industry also is recovering from inflated inventory levels that have weighed heavily on the space.SunTrust Robinson Humphrey analyst William Stein wrote in October, "Looking through any tactical correction (due to tariffs), the big move is still to the upside. We believe patient investors will be rewarded for being long semis." And Goldman Sachs' Toshiya Hari wrote in July that chipmaking equipment companies' fundamentals could improve "sooner than previously expected."Here are five semiconductor stocks to buy to take advantage of an improving outlook for the industry. We took advantage of TipRanks' Stock Screener tool to pinpoint five chip stocks that have recently accumulated bullish sentiment from Wall Street analysts. Let's take a look. SEE ALSO: 12 Tech Stocks That Wall Street Loves the Most
Intel stock has lagged far behind the broader semiconductor industry's 2019 climb. So let's take a look at what to expect from Intel's upcoming Q3 2019 earnings results to see if INTC stock might be set to pop...
Today, the world’s largest foundry, Taiwan Manufacturing Semiconductor Company or TSMC, released its third-quarter earnings, rallying chip stocks.
AMD stock rose 62% year-to-date because of enthusiasm around its 7nm product portfolio. One product that became popular—and scarce—is AMD Ryzen 9 3900X.
The stock market is near highs after rising for a decade. The best tool to answer the question is to look at segmented money flows. Please click here for a chart showing segmented money flows in 11 popular tech stocks.
Some investors believe that Intel (NASDAQ:INTC) stock is cheap because it trades at 11 times its forward price-earnings ratio. Others believe INTC stock isn't cheap because its earnings growth continues to decelerate. Source: JHVEPhoto / Shutterstock.com InvestorPlace - Stock Market News, Stock Advice & Trading TipsI'm still upbeat about INTC stock, simply because Intel's free cash flow generation continues to be strong. That's a much better indicator of value, in my opinion, than earnings or sales. Intel expects 2019 free cash flow of $15 billion, 4.9% higher than a year earlier, and 27% above its five-year average of $11.8 billion. INTC generated $59 billion of free cash flow over the past five years, returning $55 billion (equaling 93% of its free cash flow) to shareholders in the form of dividends and repurchases of Intel stock. In fiscal 2018, Intel repurchased $10.7 billion of INTC stock at an average price of $49.38 per share. In 2014, it also repurchased more than $10.8 billion of its stock at an average price of $32.47 a share. Based on the stock's Oct. 14 closing price of $51.64, Intel's return on investment from these two large buybacks is 32%. * 7 Dividend Stocks to Buy (With Brands You Can Find In Your Kitchen) Furthermore, INTC has reduced its share count by almost 8% over the past five years.None of this would have been possible without its strong free cash flow. Free Cash Flow YieldBack in June, I suggested that Intel stock had, as in December 2017, become an attractive name for value investors. I went on to suggest that Intel stock was worth buying in the mid-$40s for those willing to hold it for five years or more. I recommended that shorter-term investors wait until INTC fell into the $30s before buying it. Let's assume for a second that INTC stock will fall to $39 per share. Based on Intel's fiscal 2019 guidance, its free cash flow yield at that price would be 7.8%. That's very close to the 8.8% free cash flow yield of the Pacer US Cash Cows 100 ETF (NYSEARCA:COWZ). COWZ is a passive ETF that invests in the 100 Russell 1000 companies with the highest free cash flow yield in the index. Of course,Intel stock is currently trading in the low $50s, giving it a more subdued 6.0% free cash flow yield, which is still much better than many of its semiconductor peers. The Dividend Yield of INTC Isn't Too ShabbyConsidering Intel's consistent free cash flow generation and its healthy 2.4% dividend yield, it's hard to understand why more investors don't buy INTC stock instead of riskier stocks like Advanced Micro Devices (NASDAQ:AMD) and Nvidia (NASDAQ:NVDA).I do like the idea of getting paid to wait for Mobileye or one of Intel's other innovative businesses to take flight. InvestorPlace contributor Thomas Niel recently argued that the company's low 36% payout ratio, along with its five-year dividend growth rate of 6%, makes Intel a solid dividend-paying stock. I couldn't agree more. I recommend that long-term investors buy INTC stock if the company's share price falls into the $40s. At $52, investors who are more interested in dividend income than capital appreciation should buy INTC due to its excellent free cash flow generation. 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 * 7 Dividend Stocks to Buy (With Brands You Can Find In Your Kitchen) * 7 Hot & Trendy Generation Z Stocks to Buy * 5 Stocks to Buy in the Mighty Middle The post Intelas Free Cash Flow Makes INTC Stock a Buy appeared first on InvestorPlace.
The Zacks Analyst Blog Highlights: Intel, Oracle, Novo Nordisk, ConocoPhillips and Advanced Micro Devices
The tech industry generates both profits and headlines, but as the last year has shown, it’s not always the right investment for the faint-hearted. The semiconductor sector has shown extreme volatility in the past 18 months, as it is highly sensitive to the US-China trade war. Semiconductor chips are the third largest export from the US, and much of that trade is with China; the sector has bounced up and down in line with news of new tariffs, possible deals, broken talks, and resumed negotiations.Long-term, however, chips have been an excellent investment. The industry as a whole is up over 430% in the last 10 years, so the key here is patience more than quick returns. Most of the major chip companies have already warned that 2H19 results will miss the estimates, and shares are down in response. But is this the time to buy the dip?There are some who say it is. Len Jelinek, senior director of semiconductor manufacturing for IHS Markit, says, “Every market downturn has ended with the arrival of a technical innovation that spurred a major increase in demand… Now another historic innovation is set to take its place among these advances: 5G. However, 5G's impact will spread far beyond the confines of the tech industry, impacting every aspect of society and driving new economic activity that will spur rising demand for microchips.” His firm predicts a semiconductor rebound next year, with 5.9% industry growth for 2020. In dollar terms, the forecast is an industry increase from $422 billion to $448 billion, as the global switch to 5G brings renewed growth as tech adapts and upgrades – and replaces outmoded chips.The profit potential inherent in 5G, and consequent increased demand, has caught the attention of RBC Capital’s 5-star analyst Mitch Steves. Steves is an expert on the tech sector, with a 72% success rate on his stock reviews, and an impressive 19.9% average return on his recommendations. He’s weighed in on three major players in the US semiconductor scene, and explained what makes each of them a compelling buy. We’ve dipped into TipRanks’ database to find out what he has to say.Advanced Micro Devices (AMD)The smallest of the three chip companies that Steves reviewed, AMD boasts a market cap of $33.6 billion and brought in $6.48 billion in revenues last year. In recent weeks, AMD received a much-needed confidence booster from Microsoft, which announced that the latest version of its 15-inch Surface Laptop 3 will be powered by AMD’s new Ryzen chip. Microsoft’s move offers precedent for other computer manufacturers looking to shift away from the Inte chips that have long dominated the PC market.AMD’s gaming prospects are strong, as well. The company has announced a new line of Radeon chips that will compete with Nvidia’s mainstream offerings, although not in the high-end GPU market. If successful, the new RX 5500 should keep AMD’s GPU market share stable, providing a ready profit stream.Perhaps the most important development for AMD’s future line-up, however, is in the server processor segment. The company has plans for two new chips to target the server and data center markets. Releases are planned for the next 12 months, at a pace that will put AMD ahead of its competitors, and on track to see company-wide sales increase in coming years. Expectations are for a 4% gain in 2019, and an impressive 25% gain in 2020.Steves is definitely bullish on AMD. He writes, “Recent concern that AMD Ryzen 3 is having reliability issues is unfounded... If the stock remains at current levels and does not move notably higher before Q3 earnings, we would buy the stock more than usual.”Elaborating on the chip maker’s prospects, he describes the upside scenario as: “AMD rapidly gains share in the server market and sees continual high double-digit growth in Computing and Graphics. This creates a revenue base north of $10B and operating margins expand into the 20%+ territory. With a successful next-generation product launch, this allows the company to gain 30%+ share of the server market and we think the stock would be worth more than $60.”For now, Steves gives AMD a $44 price target, indicating confidence in a 45% growth potential over the next 12 months. The analyst consensus on AMD is a Moderate Buy, based on 8 "buy," "12 hold," and 1 "sell" ratings. The average price target of $33.29 points to an 8% upside. (See AMD stock analysis on TipRanks)Micron Technology (MU)Micron is the second-largest US semiconductor company, and the fifth largest globally. The company recorded an impressive $31.8 billion in sales for 2018, netting $5.09 billion in profits. Despite 16% earnings beat in its fiscal Q4 report, MU shares slipped in the last week of September. Investors were worried about a weaker outlook for NAND, and lower supply growth in DRAM.On the positive side, however, Micron is shipping its first 1z-nanometer chips, marking a production shift from 1x and 1y output. Demand for the company’s products is expected to increase in the coming year, as consumers grow more comfortable with the shift to solid-state drives. Micron is also expected to gain market share on non-volatile memory express and subsequent improvements in SSD sales.As for new technologies, Micron is in the center of the 5G rollout and is heavily exposed to the automotive industry. We discussed 5G above; regarding automotive, as car makers increase the computer components in cars – especially in the advent of autonomous vehicles – chip demand will increase rapidly. Micron is well-positioned to make gains in this segment.For the near-term, MU is forecast to hold steady in market share and sales. By 2021, however, the company is expected to see gains approaching 18%. This longer-term forecast makes sense of Mitch Steves’ comments on the stock. He writes, “We remain positive on Micron but keep our price target unchanged as we think the pricing flow through will take a quarter or two longer than expected (fundamentally, we think investors over-shot the near-term but the long-term could exceed new models). Positively, we think we’re past the bottom on NAND and DRAM is beginning to bottom.” Steves’ unchanged price target is $55, implying a 21% upside potential.Overall, MU’s Moderate Buy consensus comes from 16 "buy," 8 "hold," and 2 "sell" ratings assigned in the last three months. The stock’s $55 price target matches Steves’ forecast. (See Micron stock analysis on TipRanks)Nvidia Corporation (NVDA)Our final stock from Steves’ list is also the tenth-largest chipmaker in the world, counting by total sales. Nvidia recorded $12.8 billion in sales for 2018, which brought the company $4.1 billion in net income. Strong sales and income also support a dividend, another plus for investors. The annualized yield is decidedly modest, at 0.33%, but it does pay out 64 cents per share per year, and the company has been growing that payout reliably over the past six years.Nvidia is well known among gamers for its high-quality GPU chips, and the company holds a dominant position in that segment. Gamemaker Activision Blizzard has at least four upcoming titles that will be using Nvidia’s RTX platform, and important boon for the chip maker. As new titles come out, gamers are likely to upgrade their GPU chips to support them.The automotive sector is another plus for Nvidia. As autonomous vehicle technology comes ever closer, the car makers have more and more need for fast AI chips. Nvidia reported a $209 million jump in this segment in its last quarter, as it looks at sustained growth in chip sales for the automotive AI market. All in all, gaming and automotive will give Nvidia sales boosts in the near term. Market watchers see a 19% gain in the offing for 2020, and a further 16% in 2021.RBC's Steves takes all of this into account when he writes, “Our checks suggest that gaming demand is tracking slightly ahead of plan and we think Data Center is coming back in Q4. We raise our estimates and increase our price target to $217 (from $190). We think NVIDIA will be the best-performing large cap in our universe over the next 6–9 months.”Steves sums up his upbeat stance on NVDA in a single sentence: “We think results will be better than expected but our adjustments are modest in nature, as we hope that expectations do not getTo find more good ideas for chip stocks trading at fair value or better, visit TipRanks’ Best Stocks to Buy, a newly launched feature that unites all of TipRanks’ equity insights.
Advanced Micro Devices (NASDAQ:AMD) is expected to report Q3 earnings on Oct. 23. And it looks as though at least some investors are betting on a better than expected showing from the company. After a slump that saw AMD stock lose 17% since early August, it popped 4.8% on Friday, and closed at $30.53 for another 2.6% gain on Monday. Given its underwhelming guidance for Q3 revenue, what's with the sudden optimism about Advanced Micro Devices stock?Source: Sundry Photography / Shutterstock.com Two factors are at play here: laptops and China. China Trade Deal Announcement Good News for AMD Stock PriceAs InvestorPlace's Luke Longo points out, the Chinese market is an important one for Advanced Micro Devices. China accounts for roughly 30% of AMD's revenue, and the company had been growing that business at a brisk pace -- at least until the trade war broke out between the U.S. and China. Tensions between the two countries which erupted into spats of tariffs have hit many stocks this year, and AMD has not been immune from that effect.InvestorPlace - Stock Market News, Stock Advice & Trading TipsOn Friday, President Trump announced the U.S. had reached a "very substantial phase one deal" with China. The agreement is aimed at easing trade tensions between the two countries. While finalizing the deal was expected to take an additional three-to-five weeks, in the meantime, the U.S. agreed to delay the additional 25% to 30% increase in tariffs scheduled to to go into effect this week. * 10 Hot Stocks Staging Huge Reversals News of the progress in negotiations between the two countries was a boost to the markets in general -- the Nasdaq Composite got a 1.3% bump on Friday -- but tech stocks with large exposure to the Chinese market performed particularly well. As such, AMD stock was up 4.8%, while graphics chip rival Nvidia (NASDAQ:NVDA) was up 1.6% on the day. AMD's Makes Progress in Laptop MarketAMD has been making impressive gains against Intel (NASDAQ:INTC) in the laptop market. In Q2, Advanced Micro Devices grew its market share from 8.8% in 2018 to 14.1%, outpacing its growth in the desktop PC market. Considering that laptops outsell desktops by a wide margin (162.3 million to 94.4 million in 2018), this is good news for AMD stock. Adding to its momentum, at Microsoft's (NASDAQ:MSFT) big Surface event, it was revealed that the new high performance 15-inch Surface Laptop 3 is powered by a customized AMD Ryzen chip instead of an Intel Core processor. Following that announcement, China's Xiaomi revealed its newest RedmiBook ultra-portable laptop will ditch Intel processors in favor of an AMD Ryzen mobile chip. When it comes to laptops, AMD is on a roll. Takeaway for AMD StockThe trade deal with China would be a significant boost for Advanced Micro Devices, but the papers have yet to actually be signed. By Monday, doubts were being raised about whether that will happen. The laptop wins have been big for AMD, but Intel's new 10th gen Core mobile processors are starting to show up in laptops and that could slow AMD's growth. In the meantime, AMD's Q3 earnings are fast approaching and the company's guidance of $1.8 billion in revenue was well below the $1.95 billion analysts were looking for.If everything goes right for AMD, the recovery for Advanced Micro Devices stock could gain steam. However, there are still too many variables that could send it in the opposite direction. Analysts are a little more bullish on AMD stock than they were several months ago, but the majority still rate it as a "Hold." And with an average 12-month target price of $32.95, there's not a ton of upside.If you are considering an AMD investment, either buy now in anticipation of the China deal being inked and better than expected Q3 earnings … or wait a few weeks with the assumption that the current AMD recovery will stumble. 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 * 10 Hot Stocks Staging Huge Reversals * 7 Under-The-Radar Growth Stocks That Could Benefit New Investors * 5 Excellent High-Yield Dividend Stocks to Buy The post Advanced Micro Devices Stock Pops for Second Straight Day appeared first on InvestorPlace.
Shares of Intel (NASDAQ:INTC) have been struggling since disappointing investors in April. However, INTC stock has been clawing its way higher -- albeit in a slow but sure manner.Source: JHVEPhoto / Shutterstock.com That brings us to a key question: Is now the time to get long INTC or should investors take a pass? The charts are setting up for a potential breakout as we head into the fourth-quarter earnings season. But even more so than Intel stock's individual setup, the semiconductor space is starting to trade much better too. InvestorPlace - Stock Market News, Stock Advice & Trading TipsLet's start with the charts. Trading INTC StockGlancing up at the daily chart above and a few things are immediately evident. First, the gap-down action from April left a gaping hole between $52 and $57. Next, shares continue to put in a series of higher lows, a bullish technical signal highlighted by the blue line and purple arrows on the chart. Finally, resistance comes into play near $53. INTC stock is holding up over all of its major moving averages as well. * 10 Hot Stocks Staging Huge Reversals Those are the more obvious takeaways. But upon further inspection, we notice a few more nuances. As shares continue to trend higher and get rejected by resistance, INTC is setting up in what's known as an ascending triangle. That's a bullish technical pattern that has traders looking for a breakout higher. Further, you'll notice that $53 resistance also happens to be the 61.8% retracement. Based on these observations, we're looking for one of two things: A breakout over $53, or a breakdown below trend or below the recent low. A breakout over $53 and the 61.8% retracement could send INTC stock up to the 78.6% retracement near $56. Above that and the gap-fill up to $57 could be in the cards, with the current high at $59 being the next upside target. On a pullback, it would be discouraging to see the 50-day and 200-day moving averages at $49.37 and $49.07, respectively, fail to support Intel stock. Below the recent low of $48.53 and uptrend support near $47 is on the table. Valuing Intel StockUnlike the bullish-looking charts, Intel does not have a very attractive growth profile. In fact, management's multi-year outlook in May is what hit the stock so hard to begin with. As such, analysts expect revenue to fall 2.1% this year to $69.37 billion. It leaves INTC stock trading at 3.3 times this year's revenue. In 2020, estimates call for growth of 2.3%. Ultimately, estimates for 2020 are barely above Intel's 2018 sales figure ($70.9 billion vs. $70.85 billion). On the earnings front, estimates call for a 4.3% decline this year to $4.39 per share, before a rebound of just 1.4% in 2020. Based on this year's estimates, Intel stock trades at less than 12 times earnings. That's attractive to many investors, as is its dividend yield of 2.5%. That said, Intel's growth is somewhat dismal given that the economy is doing well and technology continues to evolve at a rapid pace. While some of its competition is getting hit harder on growth this year, estimates call for a much more dramatic rebound next year. As it stands, Intel is looking at almost flat growth over a multi-year period. Bottom LineChasing Intel stock is tough here. Semis are making a potential comeback and that's good for INTC stock. But there are other more attractive players in the space. Nvidia (NASDAQ:NVDA) has far better growth prospects for calendar year 2020, while Advanced Micro Devices (NASDAQ:AMD) has superior revenue and earnings growth compared to both stocks. Admittedly, Intel stock has the best dividend and lowest valuation, but investors have seen a lot of volatility despite those attributes. Over $53 and INTC is attractive to me on the long side. But as it stands, AMD and NVDA are more enticing. 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 Hot Stocks Staging Huge Reversals * 7 Under-The-Radar Growth Stocks That Could Benefit New Investors * 5 Excellent High-Yield Dividend Stocks to Buy The post Do the Charts Point to a Breakout for Intel Stock?Â appeared first on InvestorPlace.
Intel (NASDAQ:INTC) has continued to struggle as competitors it once dominated continue to build competitive leads on the venerable chip company. It seemed to lose its way as it struggled for direction following the decline in the PC. Still, like these peers in previous years, a coming shift in technology may return Intel, and by extension, INTC stock, back to prominence.Source: JHVEPhoto / Shutterstock.com Intel's latest attempt to make a comeback revolves around an effort to get back into graphics processing units (GPUs). The company had conceded this segment of the market to Nvidia (NASDAQ:NVDA) after dabbling in the graphics card market 20 years ago. However, artificial intelligence (AI), virtual reality, the Internet of Things (IoT), and other tech innovations have significantly increased the importance of GPUs.Consequently, Intel has also announced that it will introduce its Xe graphics card in 2020. The tech firm has also begun to phase out its partnership with Advanced Micro Devices (NASDAQ:AMD) on the Kaby Lake-G mobile CPUs.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Intel Stock Lacks a CatalystWhether this will become a catalyst for INTC remains unclear. Other PC-era stocks, such as Nvidia, AMD, and Microsoft (NASDAQ:MSFT) successfully redefined themselves. However, INTC remains out of favor with investors. * 7 Tech Stocks You Should Avoid Now While its closest peers have attracted premium price-earnings ratios in recent years, INTC stock trades at a forward PE ratio of 11.7. This happened for understandable reasons. The company allowed itself to fall behind AMD in the CPU market. Moreover, scandals in the C-suite, as well as mixed successes in moving beyond the PC market, have placed further pressure on Intel stock.It has now traded in a range for almost two years. INTC stock sells close to the high end of its range now. Still, with earnings projected to fall by 4.1% this year and grow by only 1.1% in fiscal 2020, Intel seems to lack a catalyst. From this point of view, INTC appears fairly valued. Investors Should Consider the FutureHowever, the price also implies that the company has rested on its laurels. The company's initiatives seem to indicate otherwise. Some of my colleagues also make a great point about the long-term case for INTC.Ian Bezek says, "it is doing better than you probably realize." Todd Shriber calls the profit potential "considerable" if Intel can boost its AI presence. If the company can capitalize on this potential, they think Intel stock will move much higher, and I agree.The move into GPUs may or may not succeed. However, the company still has an ace in the hole -- 5G. I stated in my previous article that "network cloudification could again bring servers powered by Intel chips to the forefront."Smartphone manufacturers have begun to make devices with Qualcomm's (NASDAQ:QCOM) 5G-compatible chips. This means the switch to 5G is now in its early stages. Once consumers and businesses begin to see the benefits of 5G first-hand, the benefits could finally accrue to INTC itself. Intel's self-driving vehicle unit Mobileye stands as one of these likely beneficiaries.Analysts have begun to price this possibility into earnings forecasts. Although earnings growth appears stagnant through next year, Wall Street projects average annual profit increases of 7.33% per year for the next five years. If Intel can return to double-digit profit growth, INTC stock could see the same type of multiple expansion that has benefitted its PC-era peers in recent years. That promise alone could make a position in INTC worthwhile. The Bottom Line on INTCDespite a move into GPUs, the return of Intel to prominence likely hinges on 5G. Given the paltry earnings growth forecasted for the company in the near term, Intel stock appears fairly valued at 11.7-times forward earnings.However, analysts forecast longer-term growth to move higher in future years. The adoption of 5G by itself looks poised to propel Intel higher. 5G will also drive the AI, VR, and other applications that will further benefit Intel.The 5G-driven technological shift that analysts have talked about for years has now begun. This could benefit INTC, so investors should consider buying sooner rather than later.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 * 7 Beverage Stocks to Buy Now * 10 Groundbreaking Technologies Created by Universities * 5 Semiconductor Stocks Worth Your Time The post The Future Success of INTC Hinges on Converting Its Innovations appeared first on InvestorPlace.
Nvidia (NASDAQ:NVDA) stock was trending upward on Friday upon expectations of a partial trade deal. However, as the details of the deal became clear, NVDA gave back most of its gains. The question for investors is, what now?Source: michelmond / Shutterstock.com The stock is up 43% for the year, but that doesn't tell the story. NVDA stock started the year down nearly 50% from its high in 2018. Since then, NVDA has bounced up over 50%, then down 30%, then up and down.The trend looks positive, but not perfect. There have been higher lows, but the highs have not always been higher. In fact, Nvidia stock looks like it's settling into a range.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Can No News Be Good News for Nvidia Stock?One reason for the price movement is the amount of news surrounding the stock. In March, the company picked up Amazon (NASDAQ:AMZN) as a customer for its data centers. The stock jumped about 30%. * 7 Tech Stocks You Should Avoid Now However, the ongoing trade war continues to weigh on the stock. It's hard to ignore a market that provides 44% of sales for Nvidia. And increased competition from Advanced Micro Devices (NASDAQ:AMD) in the gaming space is putting pressure on the company's margins.But that's the way it is with semiconductor stocks. Every story (good or bad) will generate strongly positive and negative opinions. So, what will it take for Nvidia stock to break out? All Eyes Are on the Earnings ReportA potential catalyst for the stock will be a positive earnings report. NVDA is scheduled to report on November 14. Nvidia has posted a slight beat on earnings in each of the last three quarters. If the company can follow suit this quarter, it could support the $217 price target that at least one analyst has forecast.In fact, two analysts have raised their price targets for NVDA. This price target announcement caused the stock to jump over 1% last week even before the announced trade truce. Betting Big on Data CentersIf nothing else, the trade truce may remove any obstacles China would put in place to prevent NVDA's acquisition of Mellanox Technologies (NASDAQ:MLNX). This deal, valued at $6.9 billion dollars, will allow NVDA to become a much larger player in the growing data center market. As InvestorPlace contributor Brad Moon wrote last week, "In 2018 alone, companies like Microsoft (NASDAQ:MSFT) and Amazon spent $152 billion on hardware and software for data centers."The analysis firm RBC projects that Nvidia's data-center revenue could rise by 100% in the near term, with sustained growth in the high-double-digit percentage range. Nvidia Is Well-Positioned in the AI SpaceFrom agriculture to self-driving cars, Nvidia has its hands in many applications for artificial intelligence. However, as the cryptocurrency crash showed, this is, and will continue to be, a volatile space.I wrote back in September that relying on AI may not be enough for Nvidia. The market bid up the stock in 2017 only to see those gains wiped out when the crypto bubble burst. It's likely the market will be far more cautious this time around. What to Make of NVDA Stock Right Now?For all the ups and downs of this year, I believe the stock is probably priced right. The semiconductor sector is historically cyclical and volatile. And with the company looking at a loss of sales to China for the foreseeable future, there will be pressure on earnings. The company is still dominant in the gaming space, but the big growth for that sector will be coming with the release of new consoles next year.Any or all of these stories could turn out to provide a catalyst for NVDA stock. And some key technical indicators provide optimism. NVDA shares are above the 10-week moving average. And the 10-week moving average has moved above the 40-week line. Also, the company's relative strength line is starting to increase after lagging for the better part of a year.However, a wide range of analysts' opinions about NVDA suggests to me the stock is in for some short-term volatility. Nvidia stock probably got overvalued in 2018, and then got undervalued this year. Right now, it's working toward a fair valuation.I am in no way suggesting that investors should not take a long position in NVDA. However, I think the short-term presents some obstacles that can't be dismissed.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 Beverage Stocks to Buy Now * 10 Groundbreaking Technologies Created by Universities * 5 Semiconductor Stocks Worth Your Time The post Why the Price Looks Right for Nvidia Stock appeared first on InvestorPlace.
Micron (MU) stock was up 4.21% on Friday and closed at $45.10. MU was trading 12.2% below its 52-week high of $51.39 for a market cap of $49.9 billion.