|Bid||52.30 x 1200|
|Ask||52.34 x 1200|
|Day's Range||52.05 - 53.19|
|52 Week Range||27.43 - 59.27|
|Beta (5Y Monthly)||2.14|
|PE Ratio (TTM)||122.86|
|Earnings Date||Jul 28, 2020 - Aug 03, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|Ex-Dividend Date||Apr 27, 1995|
|1y Target Est||54.28|
We at Insider Monkey have gone over 821 13F filings that hedge funds and prominent investors are required to file by the SEC The 13F filings show the funds' and investors' portfolio positions as of March 31st, near the height of the coronavirus market crash. We are almost done with the second quarter. Investors decided […]
The Dow Jones Industrial Average is enjoying a solid, albeit shortened, week of trading in the current stock market. IBD Leaderboard stock Microsoft, Caterpillar and fellow industrial powerhouse 3M paced the upside among the 30 Dow industrials stocks, each gaining 1 point or more. The Nasdaq composite, up nearly 0.8% in late-afternoon trading Thursday ahead of the July Fourth three-day holiday weekend, shows a 14.2% gain since Jan. 1; the S&P 500, up less than 0.7%, still harbors a year-to-date loss of less than 3%.
Once upon a time, Advanced Micro Devices (NASDAQ:AMD) was the life of the party. Its volatility was renowned, and its gains were the envy of the tech sector. But after April's earnings announcement, everything changed for AMD stock. Momentum fled and fanboys with it. Today, we're chronicling the fallout and showing which options strategies you can use to profit.Source: Hand Robot/Shutterstock.com You don't have to look hard to see why AMD became a giant in the field of momentum traders. There's no need to squint, no need for a magnifying glass. You can spot its meteoric rise from space.From 2018's low of $9.04 to this year's peak of $59.27, Advanced Micro Devices shares ballooned over 550%. The rocketship rise was fueled by the potent combination of increasing revenue and earnings. Not to mention the booming bull market in the technology sector.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Equilibrium Has Been FoundSource: The thinkorswim® platform from TD Ameritrade AMD suffered alongside everyone else during March's liquidation event, but it didn't stay down for long. Like a beach ball held deep beneath the surface, it rapidly returned to its peak. But then, the April 29 quarterly report arrived and torpedoed the stock's momentum. Fortunately, the trajectory shift wasn't one from up to down. Instead, it was from up to sideways. The earnings results were good enough to keep the share price aloft, but not great enough to justify a continued advance.Equilibrium, it appears, has been found. * 7 Utilities Stocks to Buy With Reassuring Dividends Traders used to a wilder AMD stock are growing bored with its new tamer disposition. Range-bound equities aren't nearly as exciting as those that are trending to new highs week after week. They require you to either shift trading tactics or abandon them in search of more exciting opportunities elsewhere.If you're willing to do the former, I have an options strategy or two that will help. Before I unveil them, it's worth pointing out that the trading range in AMD will be temporary. We've seen previous episodes of neutrality over the past three years. Even the most powerful growth stories see their share prices ebb and flow. Stocks that rise to the moon without any type of consolidation or pause along the way create unsustainable trends anyway.Just look at 2019, for instance. AMD first rose to $30 in April, and after six months of sloppy trading, it was still at $30 in October. But that long-term base set the stage for the epic rally that saw the stock rise another 50% by year-end. This type of choppy action allows stocks to digest gains while time passes and earnings grow.Source: The thinkorswim® platform from TD Ameritrade Trading the AMD Stock RangeOver the past three months, Advanced Micro Devices has played ping pong between $50 and $58. This week's bounce off support reinforced the range and proved that dip buyers are still alive and well. With the stock now fiddling with the middle of its range, it's hard to have confidence in making a directional bet. The 50-day and 20-day moving averages both loom overhead, threatening to impede further gains. And critical support near $50 lies closely below, warning off any bearish trades.Neutrality, it seems, is the best bet here. And that suggests trades like covered calls and naked puts are worth a shot.Trade No. 1: Buy 100 shares of stock and sell the Aug $52.50 call for around $4.05.Because we're selling an at-the-money call, the potential profit is limited to the call premium received. Since the overall trade cost is around $48.40, the $4.05 of profit translates into an 8.4% return in a cash account. It's double that if you're buying stock on margin.If you'd prefer a cheaper trade, then sell puts.Trade No. 2: Sell the Aug $45 put for $1.30.Consider this a bet that AMD stock stays above $45. If it does, you'll capture the $1.30 reward. If the put sits in-the-money at expiration, you'll be obligated to buy 100 shares at a basis of $43.70.For a free trial to the best trading community on the planet and Tyler's current home, click here! As of this writing, Tyler held bullish options positions in AMD. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * America's 1 Stock Picker Reveals His Next 1,000% Winner * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * Radical New Battery Could Dismantle Oil Markets The post How to Pull Profits From Range-Bound Advanced Micro Devices Stock appeared first on InvestorPlace.
I don't have to tell you how well Nvidia (NASDAQ:NVDA) stock has performed these past few months. The novel coronavirus wound up being a tailwind, not a headwind, for the chip giant. Shares more than doubled off their March sell-off lows. But that's just the start.Source: Hairem / Shutterstock.com Why? Valuation may be rich. But it's more than justified. With so many growth catalysts in motion and "megatrends" on its side, this powerhouse remains "best in class." As the pandemic continues to linger, hard-hit stocks like airlines, cruise lines, and retail could continue to be challenged.Strong growth stories like Nvidia? It's going to be different. Sure, there may be some hiccups in the near-term. But don't expect this company's growth trajectory to change course anytime soon. Demand in the company's existing end markets (cloud computing, data center, video games) continues to grow. To top it all off, their exposure to emerging technologies like AI (artificial intelligence) and AVs (autonomous vehicles) helps to bolster long-term growth as well.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIn short, this remains one of the best long-term investment ideas out there. Don't let valuation scare you off this opportunity. Even as shares makes new highs, there's much more left on the table. How the 'New Normal' Will Send NVDA Stock HigherThe pandemic has brought many new buzzwords into the public lexicon. A good example is the phrase "new normal." For hard hit industries, "new normal" is a bad thing. It means continued challenges as they attempt to bounce back to profitability. * 7 Utilities Stocks to Buy With Reassuring Dividends But for names like Nvidia? "New normal" may be a good thing. The coronavirus further accelerated long-term changes in our economy. Be it cloud computing, whose growth was bolstered by large-scale "working from home," or video games, which have seen tremendous growth as of late, as state-mandated lockdowns made most outside leisure activities off-limits.In short, recent events have helped, not hurt, this company's high levels of projected growth. As I said last month, the company now expects sales to grow 34% this year, with earnings seeing a 40% jump as well.Put it all together, and it's no wonder this high-flyer as flown even higher these past few months. Not only has NVDA stock passed its pre-pandemic high-water mark. Shares today trade over 20% higher than where they were back in February.Granted, this stock's recent strong performance may make you concerned it's ready to "top out" sometime soon. With shares trading at a forward price-to-earnings (P/E) ratio of 47, I don't blame you. But you can't let valuation scare you off this opportunity.Yes, shares change hands at a premium valuation. But that rich multiple is more than justified. Not just due to continued cloud, data center, and video game end-user demand cementing growth. New technologies quickly gaining critical mass means an even longer growth runway. Why Future Technologies Extend the Runway FurtherThe coronavirus may have put many things on hold, but one area it hasn't put on hiatus is emerging technologies. I'm talking about game-changers like artificial intelligence and autonomous vehicles. In both areas, Nvidia continues charging ahead, opening the door to potential above-average growth through the next decade.When you hear "GPU," you probably think of video games, and perhaps other applications like data centers. But, they're also the backbone for AI applications. While rival Advanced Micro Devices (NASDAQ:AMD) is catching up fast, this company remains the top dog in the GPU game, with about 69% market share.In short, this company's dominant position in the GPU space means heavy exposure to AI secular growth trends.With AVs, the chip powerhouse also continues to make big moves. Take, for example, their recent partnership deal with Mercedes-Benz (OTCMKTS:DMLRY). Nvidia CEO called it "a transformative moment" for the company. With this deal, the company is completing its metamorphosis from video game chip provider, to purveyor of chips for multiple verticals.In other words, after conquering several end-user markets (video games, data centers), the company is tackling new frontiers. And, with past as prelude, expect them to "crush it" again in these new arenas. Buy NVDA Stock Now Before It Heads Even HigherThe novel coronavirus did little to derail the growth train for Nvidia. With the "new normal" a tailwind, not a headwind, the company expects another year of above-average growth. But that's just the start. They're already crushed it in cloud computing, data centers, and video games.Now, with growth opportunities in AI and AVs in motion, expect continued blockbuster growth this coming decade. Don't let a rich valuation make you miss out on this opportunity.With its premium multiple more than justified, NVDA stock is far from "topping out." Grab it before it makes new highs.Matthew McCall left Wall Street to actually help investors -- by getting them into the world's biggest, most revolutionary trends BEFORE anyone else. The power of being "first" gave Matt's readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA) and +1,044% in Tesla (TSLA), just to name a few. Click here to see what Matt has up his sleeve now. Matt does not directly own the aforementioned securities. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * America's 1 Stock Picker Reveals His Next 1,000% Winner * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * Radical New Battery Could Dismantle Oil Markets The post Despite Hitting New Highs, Nvidia Stock Can Keep Climbing Higher appeared first on InvestorPlace.
Semiconductor stocks have been on fire since late March on optimism that the Covid-19 impact on the global semiconductor market will be both short-lived and not-that-big. That optimism gained credence in late June, thanks to strong earnings reports and updates from Micron (NASDAQ:MU) and Xilinx (NASDAQ:XLNX). Semiconductor stocks continued on their blistering rally.Source: Sundry Photography / Shutterstock.com The world's hottest and arguably strongest semiconductor company, Advanced Micro Devices (NASDAQ:AMD), has been no exception to this trend. From its March lows, AMD stock has risen more than 40%.I think it's worth sticking with this rally in AMD stock.InvestorPlace - Stock Market News, Stock Advice & Trading TipsDespite some obvious valuation risks (50-times forward earnings, versus a semiconductor stock average of 19-times forward earnings), AMD stock will continue to rally over the next few months for four big reasons: * The fundamentals underlying the global semiconductor will dramatically improve in the back-half of 2020 and into 2021/22. * AMD's business remains the fastest growing, most exciting business in the global semiconductor market. * Thanks to strong gaming tailwinds, AMD is positioned to have a blockbuster second-half 2020. * New products should sustain robust growth in the company's ultra-important cloud business. Improving FundamentalsThe fundamentals underlying the global semiconductor market will dramatically improve over the next few months thanks to super-charged demand in some of the industry's critical end-markets. * 9 Florida Stocks to Avoid as Coronavirus Rates Spike Just look at all the demand catalysts on the horizon for the semiconductor market.Enterprises everywhere are migrating to cloud-hosted productivity and connectivity solutions, creating super-charged demand for cloud infrastructure. Apple (NASDAQ:AAPL) is going to launch the 5G iPhone in the back-half of 2020. Microsoft (NASDAQ:MSFT) and Sony (NYSE:SNE) are going to launch their next-generation gaming platforms. The global roll-out of 5G over the next few quarters should dramatically advance edge computing capabilities, which should allow for the emergence of an entirely new class of IoT devices and self-driving technology.Net net, the fundamentals supporting the semiconductor market will only get better over the next few months, as technological breakthroughs and new products converge to spark super-charged end-market demand for CPUs and GPUs. The Best Game in TownWhen it comes to the semiconductor market, AMD has been, still is and will remain the best game in town.Just look at the company's growth rates.In the first quarter of 2020, AMD reported 40% year-over-year revenue growth. Global semiconductor sales in the same time period rose just 7%. Meanwhile, second quarter sales are expected to rise more than 20%, while full-year 2020 sales are expected to rise 25% -- and that's in the midst of a global pandemic, which entirely shut down semiconductor supply chains early on in the year.In other words, AMD remains on this robust growth trajectory which is unmatched across the global semiconductor market.So long as this remains true -- and it should for the foreseeable future (more on that later) -- then Wall Street will continue to perceive AMD stock as one of, if not the, highest quality stock to buy to play the semiconductor boom.And, so long as that remains true, when the semiconductor market moves higher, AMD stock will be leading the rally. Strong Gaming TailwindsAMD is positioned to report blockbuster results in the second-half of 2020 thanks to its favorable exposure to gaming market tailwinds.For the first time since 2013, Microsoft and Sony are unveiling new generation gaming consoles this holiday season. Both of those consoles are built on AMD's Zen 2-powered CPUs.Demand for these platforms, which represent huge leaps from the current generation of consoles, will be significant. As such, AMD will make and sell a lot of Zen 2-powered CPUs in the third and fourth quarters 2020.At the same time, AMD is planning on launching its new GPU, the highly hyped "Big Navi", in the back-half of 2020. There is a huge opportunity for that new GPU to have tremendous success, because nearly 60% of AMD gamers use legacy GPUs, and the reasons for those majority of gamers to upgrade GPUs will be stronger than ever with the Big Navi product launch and gaming activity and spending at all time high levels.Big picture: AMD's big gaming business is set for a huge second-half. Sustained Cloud MomentumArguably the most important driver of AMD stock's huge gains over the past few years has been the company's ability to penetrate the ultra-valuable, ultra-important cloud data-center market.A few years ago, AMD had zero presence in this market. But, thanks to its Epyc processors and Radeon Instinct GPU accelerators, AMD's data-center business has grown by leaps and bounds in 2018 and 2019. That big growth continued in the first quarter of 2020, and is projected to persist throughout the balance of the year.Net net, exiting 2020, AMD looks positioned to have 10%+ share of the global data-center CPU market.That's a big deal, since the data-center market is a big ($40+ billion within the next few years), and every percentage point AMD gains in market share equates to hundreds of millions of dollars in additional revenue.So long as AMD can sustain robust momentum in this market, the company's growth narrative will remain equally robust. That robust growth narrative will continue to provide support for AMD stock. Bottom Line on AMD StockThe big argument against AMD stock is valuation. I get that argument. I really do. AMD stock trades at 50-times forward earnings. Your typical semiconductor stock trades at 19-times forward earnings.But this premium valuation in AMD stock is warranted by the company's superior growth fundamentals. Those fundamentals are only going to get better over the next several months. As they do, AMD stock will continue to defy valuation logic, and power higher.Luke Lango is a Markets Analyst for InvestorPlace. He has been professionally analyzing stocks for several years, previously working at various hedge funds and currently running his own investment fund in San Diego. A Caltech graduate, Luke has consistently been recognized as one of the best stock pickers in the world by various other analysts and platforms, and has developed a reputation for leveraging his technology background to identify growth stocks that deliver outstanding returns. Luke is also the founder of Fantastic, a social discovery company backed by an LA-based internet venture firm. As of this writing, he was long MSFT. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * America's 1 Stock Picker Reveals His Next 1,000% Winner * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * Radical New Battery Could Dismantle Oil Markets The post 4 Big Reasons to Stick With the Rally in AMD Stock appeared first on InvestorPlace.
Advanced Micro Devices (NASDAQ:AMD) stock rode out the novel coronavirus. But, after seeing shares rebound from their March sell-off lows, what's next for the CPU and GPU powerhouse? Right now, shares hold steady between $50 and $55 per share. Yet, what factors could move the needle? Conversely, what risks could send shares lower?Source: Joseph GTK / Shutterstock.com On one hand, you have several catalysts still in motion. Namely, strong end-user demand. But also, the company's continued success grabbing market share from rivals Intel (NASDAQ:INTC) and Nvidia (NASDAQ:NVDA).On the other hand, shares could easily dip from today's price levels. Valuation-wise, AMD remains "priced for perfection." That is to say, much of its potential is already priced into shares.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSo far, the company has been able to keep investors happy. With the pandemic in a tailwind, not a headwind, strong growth continues. Yet, if the outbreak further impacts the economy, demand could fall, derailing the growth train for this "story stock."With this in mind, buying today doesn't look like a winning move. If you own it, it may be time to sell. If you haven't bought in yet, it may pay to stay away. Why AMD Stock Could Still Head HigherAdmittedly, I've been an Advanced Micro Devices "permabear." Yet, I can see why many continue to be highly bullish on this "too hot to touch" name. * 9 Florida Stocks to Avoid as Coronavirus Rates Spike As InvestorPlace's Chris Lau wrote Jun 26, strong gaming demand and market share growth remain major factors in this company's corner. The "stay-at-home" economy has been a boon for the video game industry. And that's a massive tailwind for the company's GPU business.Regarding market share growth, the company continues its rivals' lunch. As this commentator noted, AMD's Ryzen and EPYC product lines continue to gain at Intel's expense. With GPUs, the company is gaining ground against Nvidia.Shares could move higher on this factor alone. But, there are other potential needle-movers in the tank. With the company on the right side of future trends like artificial intelligence, it's easy to see why many believe the growth train could continue through the 2020s.Yet, everybody knows that AMD has many things going for it. That's why analysts like RBC Capital Markets remain highly bullish on the stock, giving shares a $66 per share price target.However, things could turn on a dime. If the pandemic starts to hurt tech like it has done to hard-hit service industries, shares could fall, as the growth story comes to a halt. How A Dip Could Be Just Around The CornerGranted, there are several reasons why AMD stock could rise even higher. On the other hand, there are an equal number of reasons why shares could dip from today's prices.Firstly, valuation. With a forward price-to-earnings (P/E) ratio of 48.9, shares remain richly priced.Sure, Nvidia stock trades at a similar forward multiple (45.3). But, that doesn't tell us much whether shares are overvalued or not. With their strong growth prospects, both names trade at a tremendous valuation multiple to "dinosaur" Intel.Yet, it's tough to say its growth alone driving the rich multiples for both names. Or, if FOMO, along with momentum traders, are what's driving their respective high valuations.It's tough to call the top in overall markets, let alone individual stocks. But, it's easy to see that AMD stock is topping out, and that there's little share price upside left on the table.But plenty of downside. As InvestorPlace's Mark Hake wrote Jun 16, demand could cool off in the second half of 2020. If a recessionary environment continues, demand for electronic devices, gaming consoles, and cloud computing could taper off. And that will lower demand for AMD's chips by its end-users.That's not to say sales are going to contract. But it could mean growth takes a breather. And, if the company falls short of its 20%+ growth projections, expect shares to fall substantially lower from where they sit today. Get Out of AMD Stock Before The Tides TurnWith shares treading water for nearly three months, Wall Street can't decide if this stock should head higher or lower. But, weighing catalysts against risks, it seems shares are more likely to tumble than rally higher.The easy money's already been made by those who got in early. Those who bought in at today's high valuation? They could wind up holding the bag.Bottom line: if you bought at lower prices, it's time to cash out of AMD stock. If you haven't jumped in yet? Steer clear for now.Thomas Niel, contributor to InvestorPlace, has written single-stock analysis since 2016. As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * America's 1 Stock Picker Reveals His Next 1,000% Winner * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * Radical New Battery Could Dismantle Oil Markets The post The Easy Money Has Already Been Made With AMD Stock appeared first on InvestorPlace.
Electronics Semiconductors Industry Boasts Bright Prospects
Advanced Micro Devices (NASDAQ: AMD) took NVIDIA (NASDAQ: NVDA) by storm in the first calendar quarter of 2020, clocking nice market share growth in the discrete graphics cards space thanks to a couple of solid products that were launched last year.
Advanced Micro Devices (AMD) closed at $50.28 in the latest trading session, marking a +0.36% move from the prior day.
AMD (AMD) today announced it has exceeded its moonshot 25x20 goal set in 2014 to improve the energy efficiency of its mobile processors 25 times by 2020. The new AMD Ryzen™ 7 4800H mobile processor improves on the energy efficiency of the 2014 baseline measurement by 31.7 times1, and offers leadership performance2 and extraordinary efficiency for laptop PCs. Greater energy efficiency leads to significant user benefits including improved battery life, better performance, lower energy costs and reduced environmental impact from computing.
Advanced Micro Devices’ (AMD) relentless march forward has resulted in outsized market gains for five consecutive years. No matter the macro climate and attendant headwinds, the stock just keeps performing. 2020 has been no different, although by AMD standards, relatively muted compared to recent years. Still, shares have appreciated by 19% year-to-date.But the upward movement must come to an end at some point, right? Maybe, but not anytime soon, according to RBC analyst Mitch Steves. In a recent report to clients, the 5-star analyst dissects why AMD’s gaming console segment is set to act as a catalyst over the next two-three years.With Sony and Microsoft both lining up holiday season launches for the PS5 and the Xbox, as the provider of much of the technology that powers the game consoles, AMD will benefit when both release their products.“Considering that build patterns for both the Xbox and PS5 are already set, we think AMD has high revenue visibility for the back half of 2020 and foresee higher than expected margins for the console segment,” Steves noted.In the previous gaming cycle, Steves estimates peak revenue amounted to $700 million for one quarter, with the “initial ramp” bringing in roughly $525 million.“With AMD's current guidance we estimate that semi-custom revenue should reach ~$660 million in the initial launch,” added Steves.That is a 25% premium on the last round’s launch. Based on the assumption units will be up by 10%, Steves reckons it would imply the ASP (average selling price) will increase by approximately 14%. Add to that Steves’ revenue estimate of $660 million per quarter, and semi-custom’s 2% operating margin uptick could result in a 3% addition to AMD's total EPS.No surprise, then, to learn Steves keeps an Outperform rating on AMD, along with a $66 price target. What’s in it for investors? Upside potential of 21%. (To watch Steves’ track record, click here)The Street has a cautiously optimistic outlook on the high-flying chipmaker. Based on 13 Buys and 9 Holds, the analyst consensus rates AMD a Moderate Buy. The average price target hits $56.53, and implies possible gains of 3% over the coming months. (See AMD stock-price forecast on TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Dow Jones futures tumbled early Wednesday after the record-setting stock market rally. Warren Buffett-backed StoneCo leads six stocks in or near buy zones.
(Bloomberg) -- Apple Inc. said it plans to sell Mac computers using processors designed in-house, signaling an end to its 15-year alliance with Intel Corp.The first Macs with the Apple-designed chips will debut by the end of the year, Tim Cook, the chief executive officer, said Monday at the company’s virtual conference for software makers. Apple is also working on models with Intel processors, Cook said.“When we make bold changes, it’s for one simple yet powerful reason: so we can make much better products,” Cook said. “The Mac is transitioning to our own Apple silicon.”The new chips will enable Apple to build computers with improved security and battery life, said Johny Srouji, Apple’s silicon chief. Developers will need to compile versions of their apps compatible with the new products for the software to run smoothly. However, Apple will provide a fall-back to make old apps run on the new system. Microsoft Corp. and Adobe Inc. have already begun updating Office and Photoshop, Apple said.Apple introduced an array of software enhancements to its products at the event Monday. It will make the most drastic changes to the iPhone home screen since the product’s release in 2007, bringing the software more in line with Google’s Android. Users will be able to place widgets that sit between the typical grid of apps, can be set to varying sizes and present information, such as the weather or a calendar, that updates throughout the day. The Apple Watch will get sleep tracking and hand-washing detection tools.The changes to the Mac are the most significant, though. Apple will release a major new version of the Mac operating system, called Big Sur, with support for the new chips. The design looks similar to the iPhone and iPad, with curved app icons, translucency, notification bubbles and the new widgets feature from iOS 14. The Messages and Maps apps will gain many of the features available in their mobile counterparts, and the Safari web browser will get a translation tool, changes to tabbed browsing and a customizable home page. Executives made a point of demonstrating how smoothly these apps run on Apple-designed chips.The partnership between Apple and Intel was formed in 2005, when Steve Jobs outlined a move away from PowerPC processors onstage at the same Apple event series for developers. Intel helped Apple catch up to Windows computers, some of which were more powerful at the time. In tandem, though, Apple was working on more energy-efficient chips for mobile devices based on Arm Ltd. designs and continues to use those to power the iPhone and iPad.In recent years, the speed and power efficiency of Apple’s mobile chips have rapidly increased, while the pace of improvement to Intel’s parts has slowed. This irked Apple executives, who pushed the company’s silicon unit to develop more powerful processors fit for the Mac, people familiar with the matter have said.The split from Intel has been a long time in the making. As far back as 2012, Apple was exploring a switch to its own chips, Bloomberg reported at the time. In 2018, Bloomberg reported that Apple would formally begin the transition away from Intel in 2020.In addition to ensuring legacy software runs well on the new Macs, a challenge for Apple will be to make processors speedy enough to replace Intel chips in its “pro” line of computers. Apple didn’t say Monday which models will get the new chips. Intel shares were about flat in intraday trading, while Apple’s stock was up 2% Monday, surpassing market-wide gains.Intel said in an emailed statement that it will continue to support Apple as a customer. Intel also boasted that its chips are the most advanced and offer the most open platform for software developers.The Mac is no longer the key revenue driver for Apple that it once was, but it safely sells about 20 million unit a year, delivering about $25 billion in revenue. The computers are also key for Apple to retain its professional market, which helps spur purchases of more popular devices like iPhones, AirPods and Apple Watches.For Intel, a break with Apple is more of a symbolic blow than a financial one. The entire Mac laptop lineup represents less than 5% of Intel’s annual revenue, according to an estimate by Stacy Rasgon, an analyst at Sanford C. Bernstein. The bigger concern is that Apple could embolden other computer makers to make similar moves, he said. “Now you have an actual PC that can run on something that’s not Intel.”Intel, the world’s largest chipmaker, has shrugged off attempts to unseat its dominance of personal computing for decades. Its only direct rival today is Advanced Micro Devices Inc., which has produced newer processors that have begun to take share over the last two years. But AMD’s revenue is still less than 10% of that of Intel.Other efforts to break Intel’s lucrative grip on computer processors haven’t made much of a dent. Microsoft Corp. has a version of Windows that works with chips made by Qualcomm Inc. PC makers, including Microsoft itself, have made laptops based on that combination. Those products are praised for their battery life but haven’t grabbed significant market share. The Qualcomm processors are based on the Arm technology that Apple uses in its semiconductors.While Intel’s grip on the market is largely intact and its earnings continue to grow, analysts have seen signs of slippagge. Most of that stems from persistent delays in introducing new production techniques. Once the leader in the crucial means of making processors faster and more efficient, Intel now trails Taiwan Semiconductor Manufacturing Co., the producer of all Apple-designed chips.Those slip-ups may have accelerated Apple’s departure from Intel, said Matt Ramsay, an analyst at Cowen & Co. Apple is a technology leader partly because of its control over both the software and hardware and its willingness to replace suppliers when it spots a vulnerability or an advantage elsewhere. “Their reputation with suppliers is of being somewhat ruthless,” said Ramsay. “It looks like another consequence of Intel’s execution challenges.”(Updates with more details starting in the fifth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The technology sector is comprised of businesses that sell goods and services in electronics, software, computers, artificial intelligence, and other industries related to information technology (IT).
AMD (AMD) today announced multiple new high-performance computing wins for AMD EPYC processors, including that the seventh fastest supercomputer in the world and four of the 50 highest-performance systems on the bi-annual TOP500 list are now powered by AMD. Momentum for AMD EPYC™ processors in advanced science and health research continues to grow with new installations at Indiana University, Purdue University and CERN as well as high-performance computing (HPC) cloud instances from Amazon Web Services, Google, and Oracle Cloud.
During the pandemic, investors that bought high-price tech stocks have been richly rewarded. But valuation will eventually matter. Here are eight cheap tech stocks worth a look.
There is a lot of optimism in the market for Advanced Micro Devices (NASDAQ:AMD). Institutional investors scooped up 1.3% of AMD stock in the last 13-F cycle amidst substantial market volatility. A large part of it is because of its aggressive product road map, robust financials and competitive positioning.Source: Joseph GTK / Shutterstock.com However, the bears are skeptical about AMD's performance in the upcoming quarters due to supply chain disruptions. They question the performance of its foundry partners in these uncertain economic conditions. Additionally, bearish narratives also cover the potential impact of the closure of brick-and-mortar stores across the world, hurting offline sales.The reality, though, is that the data does not support these bearish narratives and despite few hiccups, the second quarter will be in line with the analyst estimates. Let's take a look at some of the reasons why I have a bullish take on AMD.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Baseless Bearish NarrativesSource: Muslim FarooqueThe bears have gone off about the AMD's potential pitfalls in the upcoming quarter, mainly due to its foundry partners. It's true that the company is not vertically integrated and relies on different companies to provide many of its products, which include Gigabyte, Motorola Solutions (NYSE:MSI), ASRock, TUL and Taiwan Semiconductors (NYSE:TSM).Tracking the latest figures for revenue growth for these companies will provide valuable insight into the health of AMD's supply chain. The chart indicates that the majority of its partners have exhibited strong revenue growth in the past month. The only anomaly is TUL, which has struggled in generating sales for a long time.These companies assemble and sell AMD GPU's and also manufacture and sell consumer and enterprise products internationally. A lot of these companies are exclusive partners with AMD apart from TSM, which also works with its rival Nvidia (NASDAQ:NVDA). * 10 Robotics Stocks on the Technological Cutting Edge Though supply chain disruptions have impacted AMD and its partners, overall, the performance of these companies has been solid and essentially nullifies the arguments presented by the bears. Disappointing Recent PerformanceAMD fell short of analyst estimates in the first quarter, but overall its trend remains intact at this point. The company revenues totaled $1.79 billion in the first quarter, while net income was $162 million. Though revenues beat Wall Street analyst estimates, EPS came in lower than the projected 18 cents per share.Perhaps the most encouraging sign for the company is its gross margins, which hit an eight-year record 46% despite the lower sequential increase in sales. The numbers could be better, though, if the pandemic didn't force a lockdown across different parts of the world.AMD has revised its guidance for the year, pegging revenue estimates at 25-30% down from its original estimate of 28-30% for 2020. On the flip side, arch-rival Intel (NASDAQ:INTC) has pulled its guidance for the year. Rosy FutureThe optimism surrounding the company is understandable for most industry insiders. AMD has benefited massively from the lockdown with the work-from-home and play-at-home trends. More people are using cloud services, which bolsters the demand for server chips. This is perhaps why sales of its Ryzen-powered notebooks have been on a tear off-late.The company has also recently released its Ryzen 4000 mobile processors, which will help AMD in unlocking the full potential from mobile chips in the coming months. AMD's computing and graphics segment revenues took a hit in the first quarter but are still up by an impressive 73% on a year-over-year basis.Moreover, AMD expected to see a substantial turnaround in the growth of its semi-custom chip revenue in the latter half of the year with the release of the upcoming next-generation video-game consoles. Both the Sony PlayStation 5 and Microsoft Xbox Series X, use AMD's Zen 2 CPU and a next-generation GPU architecture.Furthermore, AMD also acquired a lucrative contract to supply its EPYC processors and Radeon Instinct GPUs to the Lawrence Livermore National Laboratories El Capitan supercomputer in 2023. El Capitan is expected to be the fastest supercomputer in the world. Final Word on AMD StockAdvanced Micro Devices is in a strong position to finish 2020 on a high. Its strong partner sales dispel any bearish narratives about its supply chain disruptions. The fact that it has not withdrawn its guidance for the year, unlike some of its competitors, is an encouraging sign which will only benefit AMD stock price going forward.The stock price is currently in line with the mean estimates, but the significant volatility in the market could reduce consensus estimates. However, the reality is that with its upcoming launches in the pipeline, it will only push the stock at the higher end of the analyst estimates. Therefore, there is a significant upside to the stock and is definitely a great stock to own at this time.As of this writing, Muslim Farooque did not hold a position in any of the aforementioned securities. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * Top Stock Picker Reveals His Next 1,000% Winner * The 1 Stock All Retirees Must Own * Look What America's Richest Family Is Investing in Now The post Ignore Bearish Narratives and Make a Move Into AMD stock appeared first on InvestorPlace.
In the last few years, Advanced Micro Devices (AMD) has grown without the benefit of one of its best businesses. The company has long provided chips for the major video game consoles, but the related console business for this cycle peaked all the way back in 2016.AMD has seen surging demand for CPUs and data center chips, but the semi-custom chips provided to the console companies has collapsed to next to nothing. Both Sony and Microsoft plan to launch new consoles in 2020 with AMD chips providing another revenue boost for the company.Citing the upcoming PS5 launch, Northland analyst Gus Richard expects a strong 2H for AMD. The analyst noted, "In our view, AMD is well position for 2H:20 as new game consoles launch for the holiday season, and server market share gains accelerate as Milan ramps in Q4. Moreover, we believe these products are relatively immune if the macro weakens." The analyst rates AMD a Buy along with a $67.5 price target. PS5 LaunchA big event for AMD occurred last week. The launch of the PlayStation 5 or PS5 signals that the next console cycle will take place this holiday season despite the COVID-19 impact.Microsoft is expected to officially release the Xbox Series X later this year with similar plans to the PS5 of hitting retail shelfs in November. The last console cycle kicked off in 2013 and this cycle could be the last with cloud gaming options taking shape.AMD provides an APU for the consoles which includes a CPU and GPU customized by the gaming companies. The company obtains lower gross margins for the chips, but AMD spends less on R&D while utilizing some of the development work to expand their other CPU and GPU products. The chip company generates solid net margins due to the lower operating costs despite the below company average gross margins.Revenue BoostBack 2016, the semi-custom business accounted for roughly 60% of Q3 revenues due to ~$800 million in console related revenues. AMD has guided towards a similar trend where sales won’t peak for a few years due to the late launch of the products this year.The good news for shareholders is that AMD expects data center revenues to surge to provide an added boost on these revenues. The company has already seen Ryzen CPU sales surge with the EESC business of the consoles and server chip sales actually declining.Analysts have Q3 sales surging 25% to $2.28 billion while the target was originally over $2.4 billion before some conservative guidance due to unknown COVID-19 impacts had the numbers reduced. AMD could easily reach the original estimate for ~33% revenue growth in the quarter.Last Q3 only had about $500 million in combined EESC revenues and data center alone should top $400 million this year and might even reach $500 million alone. AMD could easily top $800 million in revenue from this category leaving only limited CPU/GPU growth in computing and graphics to reach the original revenue estimates.TakeawayThe key investor takeaway is that AMD is ready to fire away on all cylinders now with the official launch of the PS5. The new console cycle is going to happen this year providing another huge revenue boost for the chip company over the next 3-4 years while AMD also works with Google (GOOGL) Stadia to develop cloud gaming.The stock has bounced around the low $50s for several months now. Some good news on console holiday sales will quickly help push AMD to new all-time highs around $60.To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
With much of America -- and the world -- working and studying from home under quarantine in the first half of 2020, there's been a boom in demand for semiconductors to power individual notebook PCs, and also the server farms that make possible those PCs' connection to the internet. It's primarily for this reason that 5-star Nomura analyst David Wong recommended investors focus on semiconductor makers winning in business notebooks and "data centers" -- with success in game consoles and automotive computers being of only secondary concern.Which stocks does Wong recommend most strongly? Chip giants Intel (INTC) and AMD (AMD). In contrast, the analyst suggests investors "reduce" their exposure to NVIDIA (NVDA). As Wong explains, semiconductor sales within Intel's data center business grew 43% year over year in Q1 2020 -- and AMD enjoyed 50% sales growth. Believe it or not, NVIDIA actually grew faster than either of its rivals, with data center chip sales up 80% year over year.The story in notebook PCs is only slightly less exciting. Intel's notebook processor unit shipments grew 22% year over year in Q1, and while the analyst lacked corresponding data from AMD, he noted that that company's "mobile revenue" sales were up "double digits."The story's a bit different in gaming, where NVIDIA's sales grew 27% year over year, but were down 10% sequentially from Q4 2019. Moreover, Wong notes that NVIDIA's year over year growth was deceptively strong, inasmuch as the Q1 2019 quarter was depressed "by a large inventory correction" that did not repeat in Q1 2020. But for that charge, NVIDIA's growth would have looked even less impressive. The analyst further notes that AMD's graphics processing unit ("GPU" -- the type of chip most relevant to gaming consoles) declined "far more than" NVIDIA's quarter over quarter drop.To an extent, this is all quite surprising as one might expect consoles to have sold briskly among homebound consumers during the Great Lockdown. But Wong explains that, in his view, "gaming GPUs are fundamentally a consumer discretionary item, and we think there remains a fair amount of uncertainty as to how the impact of COVID-19 on the global economy might" have affected sales in Q1 -- and how they might "affect gaming GPU demand in the coming months" as well.In the sphere of automotive sales, chips sold through Intel's Mobileye division saw 22% growth in year over year sales, a performance superior to NVIDIA's automotive segment revenues, which came in at just $155 million. Overall, "the automotive end market is one of the weakest of the chip end markets," comments Wong. Really, servers and notebooks are where the action is.Price target-wise, Wong has AMD stock at a "buy" rating and a $64 target price (18% above Thursday's close). The analyst rates Intel stock a "buy" as well, with a $74 target price (23% profit potential). Only NVIDIA does Wong give a less than enthusiastic rating -- "reduce" -- and the reason there being that while NVIDIA stock costs more than $369 a share, Wong thinks it's worth no more than $260. (To watch Wong's track record, click here)To find good ideas for tech stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
SK Gaming and Advanced Micro Devices (NASDAQ: AMD) have partnered up to equip SK players, staff, and the organization's player facilities in Cologne and Berlin, Germany.SK Gaming is a globally recognized organization with active teams in titles like "League of Legends," "FIFA," and "Hearthstone.""For us at SK it has always been important to make sure our players have the best conditions to practice their craft and improve every day," SK said in a post on the organization's official website. "As such it is no surprise that we have already partnered with AMD in the past. All the way back in 2008 they were announced as our main sponsor and we have lifted numerous trophies with them backing us up."AMD will be providing computers to "deliver the performance edge needed to win," as well as the power to stream "at the highest quality."In celebration of the partnership, SK Gaming is hosting a giveaway for one of AMD's high-performance PCs.See more from Benzinga * Gaming Survey Shows 'Solid Trends' As PlayStation 5, Xbox Series X Prepare For Launch(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Today we will run through one way of estimating the intrinsic value of Advanced Micro Devices, Inc. (NASDAQ:AMD) by...
Video games are on the rise thanks in part to stay-at-home procedures during the coronavirus (COVID-19) outbreak. PC gaming is up, with Etailers reporting "frequent recent stocks outs of NVDA's most popular Turing cards."According to analysts at BofA Securities, only "8% of PC gamers own a GPU on par with performance of upcoming Sony/Microsoft game consoles, which will become the new bar for mainstream performance."The approaching releases of Sony Interactive Entertainment's (NYSE: SNE) PlayStation 5 and Microsoft Corporation's (NASDAQ: MSFT) Xbox Series X could ignite a "major upgrade cycle" for PC gaming-based companies like Nvidia (NASDAQ: NVDA) and Advanced Micro Devices (NASDAQ: AMD).See Also: What Sony Analysts Like About The PlayStation 5 PresentationDemand > Supply: Demand will inevitably grow as mainstream consoles begin releasing hardware updates. BofA analysts believe "Turing adoption could be increasing as a result of the rising popularity of gaming as many are confined to their homes."Many places like Amazon (NASDAQ: AMZN) are seeing Nvidia products such as the GTX 1650 Turing card sell out."In our estimate, just 8.4% of NVDA steam users are using graphics cards with specs on par with the forthcoming Xbox Series X and PS5 game consoles which should become the baseline for AAA PC game performance/development upon their launch in the 2H of this year," analyst Vivek Arya wrote in a note."We define this threshold as equal to or above NVDA's RTX 2060 Super Turing card. This implies 90%+ of the installed base could become strongly motivated to upgrade to higher ASP current-gen Turing products, and potentially next-gen 7nm Ampere products, once new game consoles launch later this year."Latest Ratings for AMD DateFirmActionFromTo Jun 2020Morgan StanleyMaintainsEqual-Weight Apr 2020Argus ResearchMaintainsBuy Apr 2020CFRAMaintainsBuy View More Analyst Ratings for AMD View the Latest Analyst RatingsSee more from Benzinga * Sony Analyst Expects 'Strong Software' Announcements At PlayStation 5 Event * 'Modern Warfare' And 'Warzone' Loading Screens Replaced With Black Lives Matter Message * Video Game Companies Announce Delays, Pledge Support Of Protests(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.