30.97 -0.02 (-0.06%)
After hours: 7:59PM EDT
|Bid||30.96 x 38800|
|Ask||30.99 x 36200|
|Day's Range||30.74 - 31.32|
|52 Week Range||16.03 - 35.55|
|Beta (3Y Monthly)||3.18|
|PE Ratio (TTM)||171.22|
|Earnings Date||Oct 22, 2019 - Oct 28, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||33.12|
Advanced Micro Devices (AMD) closed at $30.99 in the latest trading session, marking a +0.52% move from the prior day.
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.However, 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.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAdditionally, 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. Coincidentally, part of the enthusiasm over the Agilex FPGAs is Intel's competition with Chinese outfit Xilinx, which leads the sector. Intel has significantly narrowed the production and distribution gap, which 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.
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.
Millennials are famous for their skinny jeans and avocado toast. But they've had pretty good luck picking some top stocks this year, too.
Stocks of video game makers, such as Activision Blizzard (NASDAQ: ATVI) and Electronic Arts (NASDAQ: EA), are impressing this year. ESPO and rival ETFs are largely viewed as thematic investments, but that status should not dissuade investors, particularly not when the underlying instrument is effectively structured, as is the case with ESPO.
Moody's Investors Service ("Moody's") upgraded Advanced Micro Devices, Inc.'s ("AMD") corporate family rating to Ba2 from Ba3 and senior unsecured rating to Ba3 from B1. The speculative grade liquidity rating of SGL-1 remains unchanged.
Put another tech conference in the record books.On Tuesday, Deutsche Bank wrapped up its 2019 Technology Conference in Las Vegas, at which Advanced Micro Devices (AMD) CFO Devinder Kumar presented. In a note following the presentation, 5-star Deutsche Bank analyst Ross Seymore summarized the bank's "key takeaways" form the talk.As you'd expect from AMD, it was a tale of two cities -- or rather, different tales concerning AMD's two main divisions, Computing and Graphics (C&G) and Enterprise, Embedded, and Semi-Custom (EESC). Let's tackle the bad news first.EESCWith only $2.35 billion in sales last year, EESC is the smaller of AMD's two main business divisions, and by far the slower-growing as well. (It also boasts worse profit margins than C&G). Last year, AMD's EESC sales grew barely 3% year over year, and in fact remain stuck below sales levels of four years ago. Now, it looks like things will be taking a turn for the worse.Worse, through the end of 2019, AMD is looking for about a 35% decline in sales from the "semi-custom" portion of the business.That's the bad news. The good news is that elsewhere within EESC, things are going swimmingly -- and even in semi-custom, the news isn't quite as bad as the 2019 sales decline makes it look.For one thing, AMD is making great gains in its server business, targeting "double-digit" server market share at some point within the next two to four quarters. Buoyed by "significant traction" in sales of 7-nanometer CPUs, and a greater number of platforms adopting AMD's wares, the company even believes that it will eventually reach, then surpass, the 25% market share in servers that it once held more than a decade ago. Rivals Intel and NVIDIA are expected to respond to these gains, but AMD doesn't see their responses as much of a risk to its plans, calling them neither "broad-based" nor "pervasive."Meanwhile in semi-custom, the company is predicting that this year's sales slump will be followed by a ramp in sales in the second half of next year as Microsoft places orders to outfit its new Xbox gaming console in the latest in AMD tech.C>urning to AMD's flagship C&G division, with its $4.125 billion in annual sales and robust 11.4% operating profit margin, AMD is predicting growth in graphics chips in both Q3 and Q4 of 2019 (and in 2020 as well) "driven by both datacenter GPU and client GPU."Average sale prices for "compute" chips are also "up gen-on-gen for the latest generation of Ryzen, which should have a margin tailwind over time," Seymore reports. On the graphics side of the business, the analyst sees sales more than doubling in the second half (year over year), while in "compute," he's looking for more modest, but still respectable growth of 22%.Overall, Seymore is predicting 49% year over year sales growth in the C&G division in this year's second half -- a very rapid growth rate indeed.All that being said, at a share price approaching $30, and with most analysts still forecasting only about $0.47 per share in GAAP earnings this year, there's a very real question of whether AMD's prospects are already baked into the share price at its current valuation of more than 64 times earnings. Granted, Seymore takes a more optimistic view of earnings this year (predicting per-share profits of $0.64, so 47 times current-year earnings). But his 2020 prediction of $0.89 falls short of consensus estimates for $0.95 per share -- indicating that future growth may not be as robust as other analysts expect.Accordingly, despite all the good news AMD unveiled in Las Vegas this week, Seymore continues to stick with its "hold" rating on the stock, and its $29 price target.
As tech stocks go, Intel (NASDAQ:INTC) provides investors with potential upside while also providing a reasonable amount of downside protection should the global economy slow. Most InvestorPlace contributors, including myself, consider Intel stock a smart play at this point in the economic cycle. Source: JHVEPhoto / Shutterstock.com InvestorPlace - Stock Market News, Stock Advice & Trading TipsIf you're looking for a stock with a sound balance sheet and healthy free cash flow generation, there aren't many that can compete with INTC stock. Intel Stock Is a Safer PlayAt $53, the Intel stock price has room to move higher. In mid-August, InvestorPlace's Luke Lango suggested three catalysts existed that would move Intel stock to $60 within a few quarters. Since Luke made this call, INTC is up 12% and definitely on the move. * 7 Discount Retail Stocks to Buy for a Recession A few days before Lango's Intel buy recommendation, IP's James Brumley was positive about the company despite the fact it was well behind Advanced Micro Devices (NASDAQ:AMD) when it comes to launching a 7-nanometer processor. In early June, I argued that Intel's free cash flow yield of 6.7% suggested that it was getting closer to value territory. Up almost 20% in the three-and-a-half months since, its free cash flow yield has dropped to 5.4%, a good, if not great FCF yield. All things considered, Intel stock remains a safer play than some of its more volatile competitors. A Hidden Reason to Buy INTC StockFree cash flow and a sound balance sheet are smart reasons to own Intel. However, there's another reason why some investors might consider buying its stock: Cloudera (NYSE:CLDR), the leading enterprise data cloud provider.The California-based company has had a crazy year on the markets. Down 17% year to date through Sept. 12, it has gained back 82% of those losses in the past 90 days, a chunk of it coming in the past week as a result of better-than-expected Q2 earnings. In June, after reporting disappointing Q1 2019 results, CEO Tom Reilly announced his resignation effective July 31. The company has struggled with its $5.2 billion merger with HortonWorks, a combination that gives it more than $700 million in sales and 2,500 customers.What's this got to do with Intel?Intel owns 26.1 million shares of Cloudera, making it one of the company's largest shareholders with 9.3% of its stock. Intel originally invested $742 million in Cloudera in May 2014. With the HortonWorks merger, Intel's ownership stake was diluted down to less than 10%.In the three months ended July 31, Cloudera lost $87 million on $196.7 million in revenue. On a non-GAAP basis, it lost $7.4 million from operations in the quarter, $90 million less than a year earlier on a 16% increase in annualized recurring revenue. In 2020, it expects to lose between 24 cents and 28 cents a share on a non-GAAP basis with as much as $775 million in revenue. While Cloudera has great potential, the fact that it's struggling to make money has made it a difficult stock for analysts to get behind, with just six making it a buy out of 20 covering it. Carl Icahn Likes Intel Stock and ClouderaHowever, the company's troubles have caught the attention of Carl Icahn, who owns more than 18% of its stock. Although Cloudera is losing business to Amazon (NASDAQ:AMZN), Icahn believes that Cloudera stock is undervalued. Currently, Intel's ownership stake is worth much less than Cloudera's $15 IPO price. If you like Cloudera but are nervous about making a bet on it while it's still searching for a permanent CEO, buying Intel stock is a smart way to protect your potential downside. 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 * 10 Big IPO Stocks From 2019 to Watch * 7 Discount Retail Stocks to Buy for a Recession * 7 Stocks to Buy Benefiting From Millennial Money The post The Hidden Reason to Buy Intel Stock appeared first on InvestorPlace.
The trade war between the U.S. and China has been hard on many U.S. companies but it has been especially difficult for the semiconductor industry. Chipmakers like Nvidia (NASDAQ:NVDA) rely heavily on the Chinese market so the trade war created additional uncertainty for these companies -- and Nvidia stock. Source: Pe3k / Shutterstock.com In short, Nvidia stock has been all over the place over the past year. 2018 was a breakout year for the company and a year ago, NVDA was nearing $300 per share. The stock is down 32% since then and it started 2019 at a new 52-week low of $124.46. However, the overall sentiment from analysts seems to be mostly positive when it comes to Nvidia. According to TipRanks, Nvidia stock is considered a moderate buy. 20 analysts gave the company a buy rating and the average price target is $189.27.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Discount Retail Stocks to Buy for a Recession The trade war will continue to cause headwinds for NVDA and no one knows when that situation will improve. But if you take a long-term perspective when it comes to NVDA stock, there are signs that the chipmaker can turn things around. Nvidia Stock is Recovering From Crypto-Mining CrashNvidia's rocky year can't entirely be blamed on trade war problems. The chipmaker has been recovering from the 2018 crypto-mining crash that left it with an excess of inventory and declining sales. Of all the companies affected, the crash hit Nvidia the hardest, in part because it focuses solely on graphics processing units (GPUs). The company's GPUs are used for competitive gaming, data centers, and the automotive industry. Its competitor, Advanced Micro Devices (NASDAQ:AMD) also sells CPUs so the crash didn't affect it in the same way.The most recent earnings report showed that the company's fundamentals are starting to improve. Nvidia experienced growth across all of its segments. And while revenue still isn't back to where it was a year ago, this signals that the company is beginning to turn things around. NVDA's Automotive Business Shows PromiseFor investors, one of the bright spots of Nvidia's most recent earnings report is its growing automotive segment. Its revenue grew by over 30% during the most recent quarter. This segment is still just a small percentage of the company's total business but there is significant potential there.Self-driving vehicles are inevitable and Nvidia's GPU chips can power these systems. Of course, there's still a lot of work to do before self-driving cars are ready for the road. But companies are investing a lot of money in this industry so it provides an incredible long-term opportunity for Nvidia. Nvidia's Gaming Strength is ReturningNvidia's real strength is in its gaming segment and it's where the company makes most of its revenue. Last year, the company released an updated version of its graphics cards which used a technology known as ray tracing. This technology improves the images in online gaming.Nvidia's gaming revenue is slowly starting to bounce back, though it's still down from a year earlier. This should continue to improve during the second half of the year as the holidays approach. All in all, the company isn't out of the woods just yet and the current market volatility could cause Nvidia stock to fall again. But the company has many opportunities it can capitalize on. This could make it a good long-term growth stock.As of this writing, Jamie Johnson did not hold a position in any of the aforementioned stocks. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Big IPO Stocks From 2019 to Watch * 7 Discount Retail Stocks to Buy for a Recession * 7 Stocks to Buy Benefiting From Millennial Money The post 3 Reasons the Nvidia Stock Comeback Story Will Continue appeared first on InvestorPlace.
Wall Street continued its bull run on Thursday on the back of positive developments on trade war front and monetary stimulus injected by the European Central Bank.
The market didn't end yesterday's session at its high, but the 0.29% gain the S&P 500 was able to hang onto still translates into the third-straight winner. The Dow Jones Industrial Average logged its seventh consecutive win, with both indices still buoyed by renewed hopes that trade ties with China are on the verge of improving.Source: Shutterstock Overstock.com (NASDAQ:OSTK) led the charge with its 17% advance. Shares of the e-commerce platform continued the rally spurred by an upgrade from D.A. Davidson tendered earlier this week. Advanced Micro Devices (NASDAQ:AMD) offered up a meaningful helping hand too, gaining 1.5% because it's one of the more pronounced beneficiaries of a more accommodating trade environment.Holding the market back more than any other was Oracle (NYSE:ORCL), down 4.3% in response to last quarter's lackluster revenue growth, which was underscored by the announcement that Co-CEO Mark Hurd will be taking medical leave to attend to an unnamed health-related matter.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Big IPO Stocks From 2019 to Watch None of those names are particularly well-suited trading prospects headed into today's action, however. Instead, take a look at the stock charts of Electronic Arts (NASDAQ:EA), Centurylink (NYSE:CTL) and Wynn Resorts (NASDAQ:WYNN). Here's why. Centurylink (CTL)A little over a month ago, Centurylink was featured as a noteworthy name thanks to a repeated effort to break past a major technical ceiling. Although not yet over that hump, a string of higher lows and improving technical support suggested such a move was only a matter of time.That happened, in spades. In fact, the sheer speed of the breakout was enough to push CTL stock beyond another major technical barrier. Although now overextended and ripe for some profit-taking, the entire sequence of events says the path of least resistance is now upward. * Click to EnlargeThe ceiling at $12.43, plotted in blue on the daily chart, was the technical ceiling in question. Centurylink peaked there twice in July, but didn't flinch at that level earlier this week. * The strength of the move carried CTL stock past the 200-day moving average line as well, marked in white on both stock charts. The whole move also unfurled on above average volume. * Although ripe for a pushback, the fact that the 20-day moving average line is now above the purple 50-day line, and the fact that the 50-day line is above the 100-day moving average line is telling. Any stumble should be short-lived. Wynn Resorts (WYNN)After a rough 2018, a choppy 2019 is a relative win for Wynn Resorts. Technical support around $103, marked as a red dashed line on both stock charts, gets much of the credit for escaping would could have turned out to be a move to lower lows.There may still be trouble ahead, however, despite the bullishness we've seen so far this month. WYNN stock is already slowing as it nears what's known to be major resistance, and another clue says the damage has already been done. * 10 Battered Tech Stocks to Buy Now * Click to EnlargeThe resistance line in question is the convergence of the purple 50-day moving average line and the white 200-day moving average. Wynn Resorts shares only had to get near them on Thursday to start peeling back. * Simultaneously, the 50-day moving average line has now crossed back under the 200-day moving average. This so-called "death cross" is a hint that the bigger-picture undertow is bearish despite the recent gains. * Even if the rally isn't quelled here, there's another impending ceiling. The yellow dashed line that connects the key peaks going back to the early 2018 high could still stop the advance. Electronic Arts (EA)Finally, the implosion Electronic Arts shares suffered last year hasn't persisted into this year. In fact, EA stock looks like it's been trying to stage a full recovery of that meltdown.It hasn't done that yet, and may never actually do so. There are several major clues that suggest that rebound is more likely than not though. And, the chart has drawn some clear lines in the sand that will make clear if and when the stock moves into full-breakout mode. * Click to EnlargeThe most important line in the sand is the line that connects the lower highs seen since February's peak, plotted in yellow on both stock charts. This week's lull makes clear traders are hesitant to push past it. * Nevertheless, the convergence of all the key moving averages since June is bullish in and of itself. Better still, we're close to seeing a renewed bullish cross where the purple 50-day line moves above the 200-day moving average. * It's also not likely to be a mere coincidence that the area standing in the way of more upside lies right around a Fibonacci retracement line near $103. Moving above it should also be catalytic.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about him at his website jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Big IPO Stocks From 2019 to Watch * 7 Discount Retail Stocks to Buy for a Recession * 7 Stocks to Buy Benefiting From Millennial Money The post 3 Big Stock Charts for Friday: Electronic Arts, Centurylink and Wynn Resorts appeared first on InvestorPlace.
Futures rose as the Dow and S&P; 500 near record highs. President Donald Trump said he'd consider an interim China trade deal. But Apple fell back to its buy point.
Is now the time to invest in Nvidia (NASDAQ:NVDA)? Nvidia stock has been on a bit of a run this month, up 12% since September 3. NVDA has gained an impressive 38% so far in 2019 -- yet remains far from the $281 highs it hit last October.Source: Hairem / Shutterstock.com The majority of analysts have it as a buy. However, despite their bullish attitude, at its current $184 level, there is little upside to buying now, when those same analysts have an average 12-month price target for NVDA of $189.27.Should you buy Nvidia stock at this point? Does it have the potential to continue growing, or has NVDA pretty much run out of steam?InvestorPlace - Stock Market News, Stock Advice & Trading Tips AI Is a Future Nvidia Stock CatalystThere is much to be said about NVDA's long term potential when it comes to AI. The company has been investing heavily in this area, looking to machine learning and autonomous vehicles as future growth areas. InvestorPlace's Chris Lau has a good read on how AI and self-driving car tech could pay off for Nvidia stock in the long term. * 10 Battered Tech Stocks to Buy Now But I want to focus on gaming because that is the area that is going to hold Nvidia back over the next year. Nvidia Missed the Gaming Console Ramp-UpMicrosoft (NASDAQ:MSFT) and Sony (NYSE:SNE) are releasing next-generation Xbox and Playstation game consoles in 2020. That is going to kick off a huge upgrade cycle, but it won't benefit NVDA. Advanced Micro Devices (NASDAQ:AMD) will be powering both of those consoles.The Nintendo Switch uses custom Nvidia silicon, but with the Switch still mid-cycle in its lifespan, an all-new version isn't expected any time soon. Nvidia stock is not going to see the sort of upside from Switch sales that it did when Nintendo's console first launched.Nvidia is also left in the cold on the most prominent experiment in video game streaming. Alphabet's (NASDAQ:GOOG, NASDAQ:GOOGL) Google is launching its Stadia cloud game streaming service in November. Stadia is a double-blow against Nvidia.Subscribers will be able to play AAA PC video game titles on a wide range of devices without the need for a powerful gaming PC equipped with a graphics card. Instead, cloud data centers will do the heaving lifting, with custom AMD GPUs delivering 4K graphics at 60 fps (with 8k and 120 fps on the horizon).If Google's Stadia is a success, AMD will get orders for more of those custom GPUs. Nvidia will likely see the demand for graphics cards to power gaming PCs take a hit. Putting Together the Pieces for Nvidia StockIf you look at the two factors spiked out here, the somewhat puzzling analyst positions make sense. Why would do many analysts have NVDA rated as a Buy, yet have 12-month price target that has only around 3% upside? The next year doesn't have a lot of revenue growth potential for Nvidia. It's largely missing out on the next-generation game console cycle, it's missing out on the biggest cloud gaming initiative, and it could see its graphics card sales take a hit should cloud gaming take off.At the same time, its investment in AI and autonomous driving technology is seen as likely to pay off in a big way, but that payday is further in the future. Putting all the pieces together, it seems probable that NVDA stock is approaching a ceiling. Buying now, you are unlikely to see major gains over the next year. But if you intend to hold onto it -- with AI ramping up and autonomous cars inching closer to mainstream -- that NVDA investment will pay off in the long term. 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 Big IPO Stocks From 2019 to Watch * 7 Discount Retail Stocks to Buy for a Recession * 7 Stocks to Buy Benefiting From Millennial Money The post Keep Nvidia Stock If You Have It, Just Don't Jump in Now appeared first on InvestorPlace.
Beamr has unleashed a world record video encoding benchmark by showing 8K broadcast-quality live encoding in software running on a single socket AMD EPYC™ 7742 processor. TEL AVIV, Israel, Sept. 13, 2019 /PRNewswire/ -- Beamr Imaging Ltd. announced today with AMD (AMD) that they have achieved a first for the streaming video industry by demonstrating Beamr 5, operating on a single socket AMD EPYC™ 7742 processor, to encode an unprecedented 79 frames per second in real-time at 8K resolution and with 10-bit color required for HDR. According to the Consumer Technology Association (CTA), by the end of 2022, more than 3.4 million 8K TVs will have been sold in the US alone. Mordor Intelligence reports that the Asia-Pacific region, specifically China and Japan, will see the fastest growth in 8K.
Yesterday, President Trump tweeted that he would delay the upcoming hike on the China tariffs. US semiconductor companies are sensitive to trade wars.
The long-awaited Micron (NASDAQ:MU) recovery appears to have finally arrived. Micron stock and profits took a beating last year because of a combination of the decline in crypto and an emerging trade war.Source: Charles Knowles / Shutterstock.com However, new technology has begun to drive what looks like a permanent demand increase in memory chips.Moreover, both management sentiment and analyst estimates have shown beginning signs of a recovery. MU stock has recovered as a result. With this uptick, the question becomes when to buy Micron stock, not whether to buy.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Micron Will Head HigherAll of us make bad decisions on stocks from time to time. Unfortunately, my wrong call caused me to miss the uptick in MU stock.Three days after saying that the trade war would keep MU "suppressed in the short term," the company released a report that blew my short-term investment thesis out of the water. * 10 Stocks to Sell in Market-Cursed September Management gave a presentation at a technology investment forum on Aug. 12. There, they announced that while inventories remained high, cloud and graphics have meaningfully increased demand for memory chips.This news became the catalyst that took the Micron stock price from the low-$40s per share range to over $50 per share today. I have described MU stock as a different breed from chip stocks such as Intel (NASDAQ:INTC), AMD (NASDAQ:AMD), or Qualcomm (NASDAQ:QCOM). MU stock remains a proxy for memory prices, and the recent uptick again shows that. MU Stock and Long-Term ProspectsAdmittedly, even as the stock fell from the low-$60s per share range to below $30 per share, the long-term outlook has remained strong. Artificial intelligence (AI), self-driving cars, the Internet of Things (IoT), and 5G will drive a permanent increase in demand for memory chips.Moreover, bitcoin again sells for over $10,000. The decline of crypto played a significant role in the falling demand for memory. Hence, it stands to reason that a price recovery should lead to at least a partial revival in demand for memory as crypto mining again becomes more economical.Furthermore, valuations remain reasonable. MU currently supports a forward price-to-earnings (PE) ratio of 19.8 and a trailing PE of around 5.9. Granted, with the rock-bottom PE ratio Micron has supported, the forward PE may appear pricey. The average PE ratio over the last five years has stood at only about 12.8.However, over the last month, Micron received something it had not seen in some time--rising earnings estimates. After falling for more than a year, earnings estimates for this year now stands at $6.23 per share. For fiscal 2020, they have risen to $2.56 per share. I expect the 2020 forecast will keep rising if the demand estimates hold. Watch out for the Short TermHence, I expect MU stock will keep moving higher from here over time. The question becomes what it will do in the short term. I made my wrong call early last month at around $41 per share.Now that MU has moved past $50, it has seen an increase of more than 20% in just over a month. I do not think it will return to the low $40s per share range anytime soon. However, this relatively quick rise could bring some profit-taking and a partial pullback.Moreover, investors should note that trade talks have resumed. Negotiations do not constitute an agreement. Admittedly, they could lead to one at any time. In that case, I think MU stock spikes higher from here.However, we have been on the cusp of an agreement more than once only to see negotiations fall apart. This sent MU and other stocks down before. It would likely do so again. I see such an action as the ideal time to buy Micron stock. The Bottom Line on Micron StockRising demand has helped to revive MU stock. Now, investors need to know when to buy. A management presentation pointing to increasing demand began a surge in MU that would take the equity more than 20% higher over the next month. Analyst revisions and better prospects for a trade deal almost helped Micron.However, the surge in MU stock could lead to some profit-taking. Also, it remains possible that trade talks will deteriorate. For these reasons, Micron stock could face a short-term pullback.Still, even if sentiment turns bearish for a time, the long-term prospects for MU stock have begun to bear fruit. This should only accelerate as consumers start to buy 5G-compatible smartphones.Investors who want to protect themselves from a short-term pullback should either buy in slowly or wait. However, the recovery in the chip sector has begun in earnest. This by itself makes MU stock a buy, if not now, then soon.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 Stocks to Sell in Market-Cursed September * 7 of the Worst IPO Stocks in 2019 * 7 Best Stocks That Crushed It This Earnings Season The post Micron Stock Is Poised to Surge, but Be Careful in the Short Term appeared first on InvestorPlace.
President Trump delayed China tariff hikes to Oct. 15 in a China trade war "gesture." The ECB cut rates and will restart monetary stimulus. Dow Jones futures and Apple rose.