26.65 +0.39 (1.49%)
Pre-Market: 9:19AM EDT
|Bid||26.68 x 1100|
|Ask||26.69 x 1300|
|Day's Range||25.76 - 26.77|
|52 Week Range||9.04 - 34.14|
|Beta (3Y Monthly)||4.06|
|PE Ratio (TTM)||90.87|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
In this daily bar chart of AMD, below, we can see a short-term decline this month. Prices are testing the rising 50-day moving average line, which should crest soon. The daily On-Balance-Volume (OBV) line shows a peak in early September and a decline, so far, to the middle of October.
Through the first three quarters of 2018, Intel stock was up just 2.5%. What do we make of that relative strength and should investors consider Intel stock a buy as a result? Intel has always attracted many investors due to its low valuation and its dividend.
Micron Technology (NASDAQ:MU), which provides semiconductor systems, has had a difficult time since June. While high volatility in the broader technology market is likely to continue for several more weeks, there are two mildly bearish plays in MU stock that I want to share with you, as each play could lead to impressive profits.
Intel (INTC) has been transitioning its business from a PC-centric company to a data-centric company. The contribution of the data-centric business toward the company’s revenues rose from 33.0% five years ago to its current level of 50.0%. Each of Intel’s data-centric businesses has been growing at a double-digit rate on a YoY (year-over-year) basis.
The market fought back on Friday, with the S&P 500 gaining 1.42% on the last trading day of the week. Advanced Micro Devices (NASDAQ:AMD) and Microsoft (NASDAQ:MSFT) led the charge, up 4.1% and 3.5%, respectively. Traders were flocking back into their favorite tech names, many of which were hit exceedingly hard on Wednesday and Thursday. But that wasn’t anywhere near enough strength to undo the damage done earlier in the week. For the five-day stretch, the S&P 500 lost more than 4% of its value.
Tech earnings season just got a lot more interesting. When major technology companies report their quarterly earnings over the coming month, they’ll do so in the aftermath of the Nasdaq’s worst week since March of this year. Amid market uncertainty, investors will be searching for indications of strong fundamental trends.
Amid threats of tariffs and trade wars, many investors have rotated into more small cap stocks and midcaps this year.
Stock futures soared Friday, with Dow stocks Apple, Boeing, Microsoft among those trying to rally. But stock market is in a correction.
Swedbank, one of Sweden’s largest banks, disclosed Thursday that it initiated large positions in those stocks in the third quarter.
The second round of 10% tariffs on $200 million in Chinese (FXI) goods, which went into effect on September 24, includes GPUs (graphics processing units). These tariffs could rise to 25% effective January 1, 2019, if no negotiations are resolved between the United States and China.
The bull market has lasted nine and a half years, but 2018 has seen three big market crashes, and the current one is the biggest. The technology-heavy Nasdaq Composite Index has plummeted 9% in October, and the broader S&P 500 index (SPY) has fallen 6.4% as of October 11. Technology stocks have been the biggest gainers during the bull market, and investors now seem to be booking profits.
Let’s call a spade a spade: it’s been the unexpected revival of a left-for-dead Advanced Micro Devices (NASDAQ:AMD) that’s made life miserable for Intel (NASDAQ:INTC) shareholders of late. Although Intel stock was up as much as 24% for the year as of June, another batch of new products from AMD has taken the Intel stock price from more than $57 to less than $46. Although Apple (NASDAQ:AAPL) has long been a fan of Intel’s modems and connectivity tech for its iPhones, the buzz is that Apple won’t be tapping Intel to supply Wi-Fi and Bluetooth chips for the version of the smartphone expected to launch in 2020 after all.
October started with a sharp drop in the stock markets as the Federal Reserve increased interest rates by 25 basis points to 2.25%. This was the highest interest rate level since 2008 when the Fed cut rates to near zero to tackle the recession. The stock market reacted after a few days as investors adjusted their financial models.
Advanced Micro Devices (AMD) closed at $25.30 in the latest trading session, marking a +1.2% move from the prior day.
Stock market futures fell sharply early Thursday, along with Apple, Square, AMD, Nvidia, Amazon and other top techs, signaling more losses after Wednesday's sell-off.
Several companies that have been red-hot over the past few months have suddenly become stocks to watch for all the wrong reasons. Stocks do suffer setbacks from time to time. Too many investors have forgotten it, largely thanks to the market's mostly unfettered advance since 2016. But we caught a brief glimpse of that reality in early 2018, when the Standard & Poor's 500-stock index fell roughly 10% from its peak. The bigger-picture backdrop was so overwhelmingly bullish, however, that investors were quick to forget it and rekindle the rally. This more recent stumble in October was a not-so-gentle reminder that stocks aren't bulletproof. Indeed, equities - still up 12% since early April and headed into a time of year known for marketwide weakness - appear ripe for the bearish pressures of heavy profit-taking. And some stocks that have outperformed their peers of late suddenly seem more vulnerable than others. Here are a dozen stocks to watch that may well take the biggest hits should the market tide turn fully bearish. They've been big winners of late, but they don't appear to have the kind of staying power they need to hold their ground when things get rocky. SEE ALSO: 10 Companies Already Hurt by President Trump's Tariffs
Wednesday’s selling pulled down the broader market indexes and most tech companies, but the chip stocks declined for their fifth straight day on Wednesday. The tech-heavy NASDAQ 100 index also tumbled 7%. NVIDIA (NVDA), Advanced Micro Devices (AMD), Broadcom (AVGO), and Marvell Technology (MRVL) were among the stocks that suffered the most during the sell-off. NVIDIA, AMD, Broadcom, and Marvell fell 7.5%, 8.2%, 5.3%, 5.9%, respectively.
Jim Cramer on his Mad Money show last night said he no longer trusts Advanced Micro Devices, Inc. In this daily bar chart of AMD, below, we can see a sideways period from October to May followed by a strong rally into September. The daily On-Balance-Volume (OBV) shows a decline from mid-September.
The tech sector had its worst day since 2011 after the stocks of big technology players tumbled and sent market indexes to their lowest levels, according to the Wall Street Journal. NASDAQ reached its lowest mark in three months, while the S&P 500 fell for the fifth straight session. The Dow Jones Industrial Average Index plummeted more than 800 points, or 3.15%, on October 10. The S&P 500 fell 95 basis points, or 3.29%, while the Nasdaq Composite fell more than 300 points, or 4.08%.
Chip maker Advanced Micro Devices (NASDAQ:AMD), which has struggled in recent years to compete with both sector titan Intel (NASDAQ:INTC) and the rapidly growing upstart Nvidia (NASDAQ:NVDA), has enjoyed a serious upswing in the last couple of years, sparking a huge jump in AMD stock. AMD’s core problem has always been the overwhelming resources of Intel, which dominated the processor market before anyone had heard of the internet. The main reason for the renaissance of AMD stock is that many in the industry think AMS’s EPYC server chips are faster and more efficient than Intel’s competing Xeon product.
To say AMD stock had a tough session Wednesday, may be the understatement of the year. Shares of Advanced Micro spiraled lower by 8.22% on more than 147 million shares. As the S&P 500’s top performing stock of 2018 and virtually its entire 143% year-to-date gains coming in less than six months, it has also made AMD stock one of the most talked about and unequivocally, most actively traded growth stocks in the market.