30.87 +0.06 (0.19%)
After hours: 7:59PM EDT
|Bid||30.83 x 900|
|Ask||30.86 x 39400|
|Day's Range||30.53 - 31.41|
|52 Week Range||16.03 - 35.55|
|Beta (3Y Monthly)||3.15|
|PE Ratio (TTM)||170.22|
|Earnings Date||Oct 29, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||33.48|
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.
The Zacks Analyst Blog Highlights: Intel, Oracle, Novo Nordisk, ConocoPhillips and Advanced Micro Devices
SANTA CLARA, Calif., Oct. 15, 2019 -- AMD (NASDAQ: AMD) announced today that it will report third quarter 2019 financial results on Tuesday, October 29, 2019 after the close of.
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.
It's amazing just how fast fortunes can change in the technology sector. That's something shareholders in Advanced Micro Devices (NASDAQ:AMD) stock know all too well. Once the proverbial whipping boy of the semiconductor sector, AMD has bounced back in a big way.Source: flowgraph / Shutterstock.com Thanks to advances across a variety of product lines, AMD has gotten its mojo back. Sales are rising, while shares of AMD stock have surged more than 900% since its all-time lows reached a few years ago. And now it seems that it's chief rivals are starting to run scared. * 7 Beverage Stocks to Buy Now Intel (NASDAQ:INTC) is being forced to dramatically cut prices for its chipsets in order to compete with AMD and its more advanced products. INTC seeing declining market share and such an aggressive pricing policy underscores that Advanced Micro Devices' strategy is working. That should put a huge smile on AMD stock investors' faces.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIn the end, AMD could finally gain the crown after so many years as the underdog. AMD Has the GoodsWe've talked about it before, but AMD can't be considered a distant second fiddle to Intel any longer. The key for the semiconductor leader comes down to innovation. During the dotcom boom, AMD's chips were often seen as the cheap alternative to Intel's products. Sure, they did the job and cost less, but if you needed real computing power or needed to run a server, you went with INTC's semis.However, over the last couple of years that started to change. Thanks to advances across its entire semiconductor line-up, AMD's chipsets have started to perform better than Intel's in a variety of ways. Its third-generation Ryzen chips for PC are simply a monster when it comes to computing power. The chips can come with an amazing 12 cores, while a 16-core chip is being launched before the end of the year.Meanwhile, it has been able to apply this innovation across a few other avenues as well. AMD's EPYC server chips express similar high speeds of processing capacity, while its advanced graphics processing unit (GPU) has found a place in the cloud. Thanks to their rapid speed at processing information, GPUs have quickly become the go-to chips in many data centers that power A.I., healthcare, science, and engineering applications.As if the computing power wasn't enough, Advanced Micro Devices semiconductors are kicking Chipzilla's butt in another way. That comes down to pricing. Since AMD has long been the cheaper option for CPUs, the firm has kept its prices low. With better performance metrics and cheaper prices, the firm started to see it's market share climb significantly.Industry group Mercury Research's latest report highlights just how powerful AMD has become. According to Mercury's numbers from the second-quarter 2019, Advanced Micro Devices held 17.1% of the CPU market. That's up from just 12.3% a year ago. The same could be said for servers- with AMD seeing its market share just from less-than-1% to nearly 3% of the sector. Advanced Micro Devices Has INTC ScaredFor INTC, this slippage in market share hasn't gone unnoticed. As we said, Intel has long been able to charge premium prices for its premium chips. But with AMD now catching-up and surpassing its own offerings, Intel has been forced to do something it hasn't done in a very long time and that's cut prices.Last week, Intel announced a new group of X-series chips that promise similar computing power to many of AMD's Ryzen products. The kicker was that prices for these chips were significantly lower than before. For example, back in 2017, INTC was able to charge $1,199 for its 12-core processor chip. Now it's less than $700. Its most advanced chip in the line-up has had its price cut more than half.However, that not enough and Intel is still worried about losing more market share to AMD. In a leaked internal slide show dubbed "AMD Competitive Profile," INTC estimates that it has to cough up an additional $3 billion worth of discounts and other incentives for its Core and Xeon processor line-ups in order to keep the fight vs. AMD going.Even despite its size, $3 billion is no small chunk of change. And the pricing pressures will erode INTC's currently lofty margins. Moreover, any decreases in market share will result in fewer sales overall. That's not a good situation for Chipzilla. But it does show that AMD is starting to seriously beat Intel on a number of fronts. AMD Stock Could Be the Big BuyWith INTC being forced to cut prices, it underscores just how dramatic Advanced Micro Devices' turnaround has been. It also shows its working in a big way. The best part is that there's still plenty of market share to be had. Thanks to backward compatibility and a new chip launch under its Threadripper brand -- which will push the core count even higher -- AMD has plenty of runway left in its accession. And we haven't even talked about how its forcing NVIDIA (NASDAQ:NVDA) to do the same song and dance in the GPU market.In the end, Advanced Micro Devices is no longer the semiconductor whipping boy. Its products are winning over users and that's making big tech scared. That's wonderful news for AMD stock investors.At the time of writing, Aaron Levitt did not hold a position in any stock mentioned. 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 AMD Stock Is Finally Beating Intel appeared first on InvestorPlace.
Intel (NASDAQ:INTC) stock has had a tough time in 2019. While shares are up for the year, the stock has under performed its semiconductor peers. With the company losing CPU market share to Advanced Micro Devices (NASDAQ:AMD), it's no wonder investors have left INTC in the dust. In addition, the macroeconomic environment has not been friendly to INTC stock. Or to the chip space in general.Source: JHVEPhoto / Shutterstock.com While resumed trade talks have already resulted in "progress", investors remain skittish whether the U.S.-China trade fracas will lead to further headwinds for the chip space.But looking beyond these variables, Intel remains a solid stock to own. Selling at a low valuation, it offers value in a space dominated by speculative growth names. It pays a solid dividend, and has the cash flow to support it. While you may not see big gains from Intel, it may be a great blue chip opportunity. Let's take a closer look at Intel, and see why the stock may be a buy at today's price.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Intel vs. AMDI believe the CPU wars are the most important factor when assessing Intel stock. While the trade war is a big risk, long-term AMD's purported recriminating of CPU market share threatens INTC's economic moat. Intel's dominant market share has given it pricing power and other advantages to ensure the stock remains a cash cow. But with AMD eating more of Intel's lunch, it seems that this gravy train could soon be over. * 7 Semiconductor Stocks to Buy Now But what is the truth behind the hype?It's no joke that AMD's Ryzen processors have been a game-changer. The success of this chip line has helped AMD seize more of Intel's CPU market share since 2017. AMD now has a staggering 30% market share of the CPU market. If this trend continues, AMD could reach market share it hasn't seen since the mid-2000s, when it had over 40% CPU market share.However, could this be but a short-term blip? Intel's market share losses are the result of their chip shortage. Their inability to adapt to 14-nanometre sized processor lead to supply issues. End-users simply switched from Intel to AMD.Perhaps AMD's market-share grab will taper off in the next few quarters. InvestorPlace's Ian Bezek believes so. In his Oct. 9 article, he pointed out how while AMD's market share has grown materially, it cooled off in the last quarter. However, as an aside, Bezek pointed out how Microsoft (NASDAQ:MSFT) partnering with Qualcomm (NASDAQ:QCOM) for chips in their Surface tablets highlights market share risk. Mobile chips have not been successful in the past when used in tablets. But with improvements in technology, mobile chip makers like Qualcomm now offer a compelling alternative to Intel's x86 CPUs. Despite Headwinds, INTC Stock Is UndervaluedIntel stock trades at a low valuation relative to most of its peers. INTC trades at a forward price-to-earnings (P/E) ratio of 11.6. The stock's enterprise-value-to-EBITDA (EV/EBITDA) ratio is 7.7. Here are the respective valuations of INTC's key competitors:AMD: Forward P/E of 27.8, EV/EBITDA of 64.7Broadcom (NASDAQ:AVGO): Forward P/E of 12, EV/EBITDA of 14Qualcomm: Forward P/E of 18.3, EV/EBITDA of 8.4Nvidia (NASDAQ:NVDA): Forward P/E of 26, EV/EBITDA of 40Texas Instruments (NASDAQ:TXN): Forward P/E of 5.9, EV/EBITDA of 3.1One thing to keep in mind is Intel's lack of long-term revenue growth. Analyst consensus estimates revenue will only grow from $69.4 billion in 2019 to $70.9 billion in 2020. Clearly, INTC stock is no growth play. But Intel stock more than makes up for in terms of return of capital to shareholders.INTC stock currently pays a 2.42% yield. While not the highest yielding blue-chip, it is otherwise a solid dividend. With a payout ratio of just 35.92%, there's plenty of room to grow this in coming years. The average 5-year growth rate for the dividend has been 5.92%. * 10 Tech Stocks to Buy Now for 2025 Along with dividends, Intel has bought back a lot of stock. For the first half of 2019, they repurchased $5.6 billion worth of shares alone. These buybacks are accretive to Intel shareholders, as they improve earnings-per-share over the long-term. Bottom Line: Intel Is a Solid Long-Term InvestmentThere's not much of a "play" with INTC stock. The company's main appeal is their cash-generating status and relatively low valuation. Key risks like competition and China may already be priced into shares. But if both of these issues accelerate, it does threaten the bull case for Intel stock.So what's the call? Are you looking for a solid dividend payer? Consider Intel stock. Are you looking for a contrarian chip play? Perhaps look elsewhere. Whether or not INTC maintains its moat, it is unlikely the company will see monumental revenue growth. Other chip names may offer this proposition.As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Beverage Stocks to Buy Now * 10 Groundbreaking Technologies Created by Universities * 5 Semiconductor Stocks Worth Your Time The post Why Intel Stock Will Weather the Trade War Storm appeared first on InvestorPlace.
Cowen analyst Matthew Ramsey reaffirmed an Outperform rating and sees 35% upside to the chip maker’s stock. He wrote recent volatility in AMD stock is near-term noise.
The US and China reached the first phase of the trade deal after struggling for over a year. The “very substantial” deal happened after 13 rounds of talks.
Advanced Micro Devices (NASDAQ:AMD) is expected to make their third-quarter earnings announcement on October 23, 2019. The chipmaker has been in the news for many reasons. Some of those reasons have been good and some not so good. And this good news, bad news dynamic shows up in the AMD stock price.Source: JHVEPhoto / Shutterstock.com The company's stock price is up for the year, but down significantly from its earlier highs. With conflicting information about its future direction, I expect investors to wait for the earnings announcement before making firm decisions on AMD stock. Advanced Micro Is Gaining Market Share with Several New DealsFirst, there is news that supports an increase in Advanced Micro Devices stock. In August, AMD announced that Microsoft (NASDAQ:MSFT) would be using the company's 15-inch processor in one of the latest versions of its Surface laptops. This isn't a move that analysts expect to generate significant revenue for AMD immediately. However it is the first step that Microsoft has taken away from Intel (NASDAQ:INTC).InvestorPlace - Stock Market News, Stock Advice & Trading TipsThis followed on the heels of another major announcement from AMD in August. This is when the company announced that Alphabet (NASDAQ:GOOGL) and Twitter (NYSE:TWTR) would be using their second-generation EPYC chip in their data centers. This was another market share win over Intel. AMD Could Be a Victim of Apple's SuccessHowever, there are also reasons for investors to proceed with caution. One reason comes from Apple (NASDAQ:AAPL). Apple is experiencing better-than-expected sales of their new iPhones. Some analysts (and writers like me) thought customers would hold off because of the 5G lineup coming next year. However, Apple has told suppliers to boost production for all three phones by 10%. * 10 Super Boring Stocks to Buy With Super Safe Returns This is significant because, unlike Intel, AMD does not produce its own chips. However, AMD is enjoying a competitive edge over Intel by using 7-nanometer cores in its third-generation Ryzen (Zen 2) processor. Intel is not planning to release its own 7-nanometer chip until 2021.Because of this, PC makers have been turning to AMD for their business. However, if Apple needs 7-nanometer chips to accommodate demand for their new iPhone, then it's likely that AMD will experience delays that could give Intel time to catch up. Short Interest Is Predicting a Decline in the AMD Stock PriceFor the second time in two months, AMD stock is seeing a sharp increase in short interest. In fact, short interest for AMD is now at its highest point in 14 months. This would support the argument that institutional investors believe AMD shares are heading lower as the calendar year comes to an end.In the final two weeks of September, Bill Maurer, an analyst and contributor for Seeking Alpha, observed a rise in short interest of 26.5 million shares. This was the largest such jump for AMD stock since July 2015. Don't Expect Much Help from a Trade DealA potential piece of good news for AMD stock would come from a resolution of the U.S.-China trade war. Late last week, the U.S. and China were involved in high-level negotiations, which eventually led to a temporary truce.However, the consensus from the beginning is that a trade deal will provide a lift if the two superpowers can agree on the thorny issues surrounding intellectual property and Huawei. Trade restrictions have made U.S. chip suppliers unreliable for Chinese companies. A trade deal will only help that if these issues are part of a permanent deal, which seems unlikely. What Is the Market Expecting from AMD Stock?The market is projecting single-digit revenue growth for the year. While that may not sound impressive, you have to consider the context. AMD reported a significant decline in revenue during the first half of the year. Therefore, analysts are projecting Q4 revenue growth of 51% and 25% year-over-year revenue growth in 2020.Will AMD be able to live up to such elevated expectations? We'll start to find out when they release their Q3 earnings. Until then, I expect Advanced Micro Devices stock to stay in a fairly tight range.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 * 10 Super Boring Stocks to Buy With Super Safe Returns * 10 Winning Stocks to Buy and Stick With for the Long Haul * Don't Give Up on These 4 Cannabis Stocks The post AMD Stock Is Telling Two Different Stories appeared first on InvestorPlace.
If it were not for the U.S.-China trade war escalating and then de-escalating throughout the last year, semiconductor stocks would trend higher. Instead, the sector is struggling to hold a trading range that started early this summer. The outlook weakened after various chip companies warned that the second half would come in weaker than expected. Investors need to decide if the strength in chip sales earlier this year was due to customers hoarding supply ahead of tariffs. Or will the refresh in smartphones, led by Samsung, Apple (NASDAQ:AAPL), Huawei and others, give a lift in demand?The uncertainties in chip sales through the rest of the year are already adding volatility to semiconductor stocks. Already trading at low price-to-earnings multiples, value investors seeking growth in the chip sector have several companies to pick from. And since chip stocks may enjoy strong profit growth when demand rebounds, they do not need to pay investors a dividend. Instead, they may grow cash levels and increase capital expenditures when the market improves. * 10 Super Boring Stocks to Buy With Super Safe Returns There are seven semiconductor stocks that investors should consider buying now at current levels.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Semiconductor Stocks to Buy: Micron (MU)Source: Charles Knowles / Shutterstock.com Micron stock fell from $50 to the low $40s after the company released fourth-quarter results that beat consensus estimates. Investors fretted over the significantly weaker NAND outlook. Bit growth -- one way to represent the projected increased in demand -- will slow in 2020 due to excess supply. Still, for 2019, DRAM supply growth is trailing demand while cost reductions for the fiscal year are moderating. This suggests a demand-supply equilibrium for both NAND and DRAM. Plus, Micron is not slowing down on product innovation.Micron shipped the first 1z-nanometer products, giving it feature size leadership. 75% of its production was 1x while 1Y output will increase. Its 96-layer 3D NAND is becoming a bigger portion of its mix, which should lift profit margins. It is also using replacement gate dyes for the first time, which reduces the replacement gate transition.Near-term worries over excess supply conditions could pull MU stock to below $40 for an extended period. But the market demand for its product will only grow in the coming years. Consumer solid-state drives are now mainstream for computers. Non-volatile memory express -- an interface protocol built for SSDs -- will lift Micron's market share. In mobile, NAND shipments tripled year-over-year. As 5G rolls out, LP5 DRAM demand will increase. Data center and graphics are a strong market and Micron is at the heart of the business. And in automotive, weak sales will not hurt revenues from this segment. Auto companies are adding more computer components, which will lift demand. Nvidia (NVDA)Source: michelmond / Shutterstock.com Nvidia (NASDAQ:NVDA) is well above the $135 lows set in June 2019. Investors continued to accumulate Nvidia stock after its second-quarter report posted on Aug. 15. Chief among its growth segments is its dominance in the GPU market for PCs. Gaming companies continue to support the company's RTX platform. In Q2, a growing number of AAA titles announced support for RTX, including Activision Blizzard's (NASDAQ:ATVI) Call of Duty, Cyberpunk 777, Watchdogs: Legion and Wolfenstein: Youngblood.With RTX cards' inclusion in hundreds of original-equipment-manufacturer laptops will give the GPU segment a strong lift in revenue. Nvidia's solution offers energy efficiency through the Turing architecture and Max-Q technology enables a thin and light form factor.Nvidia reported a 30% jump in the automotive segment, to $209 million. Adoption of its artificial intelligence cockpit solutions plus autonomous driving projects will lead to the sustained growth the company enjoys. Volvo (OTCMKTS:VLVLY), Daimler's (OTCMKTS:DMLRY) Mercedes-Benz models and Toyota (NYSE:TM) are all employing the end-to-end platform.The gaming market will continue to add meaningfully to results. RTX-enabled games continue to grow -- and more will come. Although game sales weakened, game developments and better pricing will lead to higher sales. And that will result in avid gamers upgrading their GPUs to support those titles. Advanced Micro Devices (AMD)Source: JHVEPhoto / Shutterstock.com Advanced Micro Devices (NASDAQ:AMD) earned Microsoft's (NASDAQ:MSFT) vote of confidence after Microsoft chose it to power the Surface Laptop 3. Although this will not add meaningfully to AMD's revenue, it does set a framework for PC manufacturers to follow. AMD's mobile Ryzen offers powerful computing, graphics computing and a great battery life. All of this is wrapped in an ultra-slim form factor.On the gaming front, AMD announced the Radeon RX 5500 to compete against Nvidia's mainstream GTX graphics cards. The refresh replaces the RX 570 and RX 580 GPUs which have been on the market for three years. AMD stock did not move after the announcement because markets are still waiting for a high-end competitor to Nvidia. AMD launched a 7-nanometer RDNA graphics card lineup but gave no hint on when the second-generation version will come. As long as AMD does not lose market share to Nvidia, it should still make decent profits from the GPU market.AMD's new generation of server processors will accelerate its market share growth. It has two chips planned: Epyc Milan and Epyc Genoa. Genoa will target the server and data center markets and will be on the SP5 platform. The company also shared some details on the Zen 3 and Zen 4 architecture. Zen 4 will come in a year and might come on the new 5-nanometer or 6-nanometer process. At this pace, AMD will have a significant lead over the competition. Broadcom (AVGO)Source: Sasima / Shutterstock.com Broadcom (NASDAQ:AVGO) issued a conservative outlook and tone in its third-quarter earnings call. The company said that infrastructure software customer demand remains stable, especially in North America and Western Europe. While semiconductor solution revenue fell 5% year-over-year to $4.4 billion, it rose 6% quarter-over-quarter. Even though the U.S.-China trade conflict lingered in the period, Broadcom did not see the business deteriorate further. This gave management the confidence to forecast $22.5 billion in revenue in fiscal 2019. $17.5 billion will come from semiconductor solutions.Broadcom's semiconductor business is fundamentally strong. Since it is in the business of building connectivity solutions from CPUs to memory in data centers, higher bandwidth demand will drive its growth. With the semiconductor solutions segment representing 79% of its total revenue, the business may rebound from here. That is, if the sector is at a bottom, a ramp-up in orders from North American customers will lead to a rebound in AVGO stock.Its constant commitment to research and development will result in the development of new semiconductor technology. For example, expect higher demand for better performance in connectivity, through increased bandwidth. And as applications transition, it will increase the demand for Broadcom's semiconductor products. Intel (INTC)Source: JHVEPhoto / Shutterstock.com Despite a weak quarterly report that sent the stock to below $45, Intel (NASDAQ:INTC) traded recently at close to $50. Investors forgave the company for the recent business slowdown because Intel stock trades at an inexpensive P/E of 11.8. It also pays a modest dividend that yields 2.5%. What might investors look forward to as Intel faces heavy competition from AMD?Intel has a roadmap of products. Its Cascade Lake processor is on 14-nanometer technology. Even though it is behind AMD's 7-nanometer processor, Cascade Lake has useful features that will appeal to customers. Deep-learning boost technology is inference technology built into the CPU. Optane persistent memory may attract over $10 billion worth of business from the data center market. Optane has a new memory controller on its CPU and supports massive memory sizes, such as 128 gigabyte and 512 gigabyte densities.In the first half of 2020, it will launch the Cooper Lake CPU, followed by Ice Lake in the second half of 2020. Getting two CPU platforms out in a single year is a new approach for Intel. But this cannot come soon enough. These CPUs will be on 10-nanometer processors and already show the promise of high yields. In the short term, investors need to patiently wait for updates on the development of Optane. Intel is in the R&D investing phase but ramping up this business will happen later. NXP Semiconductors (NXPI)Source: Lukassek / Shutterstock.com In the short-term, the NXP Semiconductors (NASDAQ:NXPI) stock price depends on the market's sentiment. But in the long term, as management earns investor confidence in its ability to drive growth, the stock will rise. The supplier of secure connection chips already rose from around $90 in June to above $110, thanks to its strong second-quarter earnings report.NXP has four major end markets for growth. In automotive, advanced driver-assistance systems and electrification will increase chip sales. More OEM car manufacturers seek solution innovations. And as cars add more technology content, NXP stands to benefit from this trend. In the industrial and internet of things segment, the company faces a fragmented customer base. Processing needs are transforming the market, so NXP stands out because it offers scalable solutions.Mobile is still a growing market. And even though sales for high-end smartphones are slowing, phone makers continue to demand features. In driving more innovation, NXP management expects continued growth from this market.Communication infrastructure is a clear growth driver. While the uptake for 5G will trickle in the near term, the shift to the faster network cannot be stopped. The U.S. telecom market is already investing in the change but is rolling it out one city at a time. But once any issues are worked out, 5G implementations will lift NXP's growth. At a forward P/E of under 13, NXPI stock is inexpensive. Qualcomm (QCOM)Source: Akshdeep Kaur Raked / Shutterstock.com Qualcomm (NASDAQ:QCOM) tried but failed to break out above $80 throughout 2019. At a recent price of around $77.50, the stock offers a dividend that yields 3.2%. The stock's upside is getting held back on government scrutiny over its alleged monopoly practices.Qualcomm is expanding its reach beyond smartphone devices and is getting into the laptop market in a big way. Microsoft said that the Surface Pro X will offer an all-day battery life. This feat is due to the 13-inch unit having a Qualcomm Snapdragon 8cx processor called SQ1. Microsoft also boasts that this is the thinnest Surface device ever. In effect, SQ1 ushers in a new era in mobile tablet and laptop computing. Qualcomm also competes with SoftBank's (OTCMKTS:SFTBY) Arm Holdings with the SQ1. Still, it does not compete with AMD's mobile solution since customers may opt for a Surface 3 laptop if they want an AMD-powered system.For the upcoming third quarter, Qualcomm expects revenue in the range of $9.2 billion to $10.2 billion. GAAP diluted earnings per share will be $3.57-$3.77. At 18.5 times forward P/E, investors should consider Qualcomm stock.As of this writing, Chris Lau owned shares of NXPI. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Super Boring Stocks to Buy With Super Safe Returns * 10 Winning Stocks to Buy and Stick With for the Long Haul * Don't Give Up on These 4 Cannabis Stocks The post 7 Semiconductor Stocks to Buy Now appeared first on InvestorPlace.
Some options traders are actively betting that AMD stock will rise after the company reports its Q3 earnings at the end of October. Let's look closer.
Today, Lisa Su completed five years as the CEO of AMD. In these five years, she's brought it back from near bankruptcy and made it into a worthy competitor.
Shares of semiconductor companies are broadly higher Friday, led by the surge in Advanced Micro Devices Inc.'s stock , amid upbeat industry data and a sharp rally in the broader stock market after a report of a U.S.-China trade truce. The PHLX Semiconductor Index hiked up 3.0%, with all 30 components gaining ground. The chip sector tracker (SOX) was now just 1.2% away from its July 24 record close. The biggest gainer in the index was AMD's stock, which ran up 6.0%. Analyst David Wong at Instinet noted that Gartner estimated that worldwide PC shipments in the September quarter rose 8.0% from the previous quarter, and grew 1.1% year over year. Wong wrote in a note to clients Friday that he thinks the solid overall PC environment is "good for AMD," and that AMD will likely benefit from continuing market share momentum. Among the SOX's other more-active components, shares of Micron Technology Inc. climbed 5.6%, Intel Corp. rallied 2.8% and Nvidia Corp. hiked up 2.5%. Over the past three months, AMD shares have still slumped 9%, while the SOX has run up 8.6% and the S&P 500 has eased 0.4%.
In the battle for domination in the graphics niche, the prominent players are Intel (NASDAQ:INTC), Advanced Micro Devices (NASDAQ:AMD), Micron (NASDAQ:MU) and Nvidia (NASDAQ:NVDA). Investors in AMD stock are betting on a company that's kept up with the competition through thick and thin, but there's no room for complacency in the tech war.Source: Sundry Photography / Shutterstock.com With new product releases to get excited about, Advanced Micro Devices stock holders can rest easy knowing that the company is still on the leading edge of the GPU (graphics processing unit) battlefront. But can AMD continue to push the boundaries and add value amid an uber-competitive tech landscape? Behold … AMD's Nvidia KillerThe GPU niche has grown considerably in recent years, with leading manufacturers leapfrogging past each other to make the fastest, most powerful devices on the market. To quote Columbia University's Michalis Polychronakis and co-researchers Giorgos Vasiliadis and Sotiris Ioannidis:InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Super Boring Stocks to Buy With Super Safe Returns "Driven to a large extent by the ever-growing video game industry, graphics processors have been constantly evolving, increasing both in computational power and in the range of supported operations and functionality."Not long ago, it seemed as if the graphics-card battle had been won decisively when AMD came out with the Navi 10 GPU, which is hosted inside the company's RX 5700 graphics card series. Sporting a streamlined graphics engine, multi-level cache, and all-new compute units, the redoubtable Navi 10 offered the most seamless streaming and most powerful encoding to date.No wonder they called it the "NVIDIA Killer": the Navi 10's release was an event that delighted techies while giving the AMD stock price its nice little bump, at least temporarily. Moreover, the Navi 10 is a mid-tier offering, meaning that it's competitive not only in terms of raw performance, but also when measured via a performance-versus-price ratio.As if that weren't enough to knock out the competition, AMD plans to release its next-generation GPUs, known as the Navi 21 and Navi 23, in mid-2020. As a higher-end product, the Navi 23 in particular will feature improved performance and most likely a higher price point, and is very likely a direct response to Nvidia's similar RTX 2080 Ti. Buy AMD Stock to Win the Graphics RaceAMD keeps coming up with the best graphics cards and processors on the market, and a stake in Advanced Micro Devices stock is very likely to benefit from the company's ambitious vision and nearly flawless execution of that vision. Serious desktop gamers are practically drooling at the newly-released Radeon RX 5500, which is touted on the company's website as AMD's most evolved high-performance desktop-gaming GPU:"Powered by the groundbreaking 7nm RDNA architecture with Radeon Image Sharpening and Radeon Anti-Lagtechnology, Radeon RX 5500 delivers extremely efficient, ultra-responsive, high-fidelity gaming… The Radeon RX 5500 GPU powers high fidelity gaming for immersive explosions, physics, and lighting effects, bringing realism to life."If you're a gamer, that's probably music to your ears; if you're an AMD stock investor, hopefully you can at least appreciate the verve and the vividness of that description of the RX 5500. You see, desktop computers might seem old-fashioned in the era of the smartphone, but serious gamers take their desktop computers seriously -- and Advanced Micro Devices takes its graphics technology seriously too, in case you couldn't tell by now. The Takeaway on Advanced Micro Devices StockWhatever the future of gaming technology might bring, Advanced Micro Devices is bound to remain on the cutting edge and AMD stock should, if I'm correct in my assessment, be a solid performer amid a constantly evolving -- and seemingly never-ending -- war of the GPUs.As of this writing, David Moadel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Super Boring Stocks to Buy With Super Safe Returns * 10 Winning Stocks to Buy and Stick With for the Long Haul * Don't Give Up on These 4 Cannabis Stocks The post Prepare for an All-Out Graphics War With AMD Stock appeared first on InvestorPlace.
American chipmaker Nvidia (NASDAQ:NVDA) has seen its value surge over the past several months. After a 1.96% percent gain on Wednesday, Nvidia stock is now up about 35% since the start of June and 37% in 2019.NVDA got a big boost on Monday, when several prominent Wall Street analysts substantially raised their 12-month price targets on Nvidia stock. With bullish analysts suggesting that NVDA can climb 20%, is it time to invest in NVDA stock?Source: NPS_87 / Shutterstock.com If everything goes perfectly for Nvidia, the case could certainly be made that it's a buy. However, there are a number of factors that could cool Nvidia's growth, with China looming large on that list.InvestorPlace - Stock Market News, Stock Advice & Trading Tips The Case for Buying Nvidia StockNVDA is definitely an attractive stock at the moment. Even though, as mentioned, it's up 37% in 2019, it's still 33% below the level it hit in September 2018. * 7 A-Rated Stocks Under $10 RBC Capital raised its price target on Nvidia stock to $217 on Monday, triggering a rally by Nvidia stock. RBC is not the only firm that's upbeat on NVDA stock. The Wall Street Journal is tracking 37 analysts, and of those, 24 rate NVDA as a "buy." Among the reasons for RBC's upgrade is Nvidia's pending purchase of Mellanox Technologies (NASDAQ:MLNX). The $6.9 billion dollar deal will give NVDA's data-center business a big boost. With the Mellanox deal, Nvidia is positioning itself to be a much bigger player in the explosive world data center market. In 2018 alone, companies like Microsoft (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN) spent $152 billion on hardware and software for data centers. RBC thinks that spending could raise Nvidia's data-center revenue by 100% in the near-term, with sustained growth in the high-double-digit-percentage range.The growth of Nvidia's video-game business and its automotive division are also seen as likely to boost NVDA stock. The revenue of the automotive division -- which supplies chips for autonomous driving systems -- reached a record $209 million last quarter. Factors That Could Derail the Recovery of NVDAWhile there are clearly plenty of reasons to be optimistic about Nvidia stock, there are also factors that could stunt NVDA's growth.While the increase of automotive revenue is good news, graphics cards for gaming still generate half of NVDA's sales. Last quarter, the unit's revenue sank 27% year-over-year to $1.3 billion. That's the result of a lasting "crypto hangover" from the crash of the cryptocurrency market. But the gaming division faces a tough adversary in rival Advanced Micro Devices (NASDAQ:AMD). AMD is aggressively attacking Nvidia in the gaming market and gaining market share in the space.AMD just announced yet another new graphics card that it claims outperforms Nvidia's equivalent card by a wide margin. And when next year's new generation of gaming consoles is released, AMD will be powering the Playstation 5 and the Xbox Scarlett. China remains a huge variable. It's estimated that 44% of Nvidia's revenue comes from the Chinese market. That makes Nvidia stock vulnerable to any escalation in the ongoing trade war between the U.S. and China.And speaking of China, that could be a problem when it comes to Mellanox as well. As InvestorPlace's Vince Martin pointed out, Mellanox is far from a done deal at this point, and China could block the acquisition.At the end of the day, the analysts feel that Nvidia stock is a solid buy. And if all goes according to plan, NVDA could outperform their average price target of $188.70 and hit RBC Capital's $217 target. But I wouldn't count on everything going right for Nvidia stock, especially with the huge China variable and rival AMD coming at NVDA with guns blazing.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 Super Boring Stocks to Buy With Super Safe Returns * 10 Winning Stocks to Buy and Stick With for the Long Haul * Don't Give Up on These 4 Cannabis Stocks The post Is Now the Time to Buy Nvidia Stock? appeared first on InvestorPlace.