|Bid||0.00 x 40700|
|Ask||0.00 x 29200|
|Day's Range||33.49 - 34.30|
|52 Week Range||15.72 - 34.86|
|Beta (3Y Monthly)||3.37|
|PE Ratio (TTM)||134.94|
|Earnings Date||Jul 30, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||31.21|
(Bloomberg) -- Taiwan Semiconductor Manufacturing Co. projected current-quarter revenue ahead of estimates, as the Apple Inc. supplier shrugs off a smartphone slump and U.S. sanctions on Huawei Technologies Co. to ride demand for cutting-edge chips.The world’s largest contract chipmaker expects sales of $9.1 billion to $9.2 billion in the September quarter, ahead of average projections for about $8.9 billion. The Taiwanese company earlier reported a fall in June-quarter net income to NT$66.8 billion ($2.1 billion), surpassing the NT$65.7 billion estimated.TSMC’s solid outlook may allay fears of a persistent global chip downturn as Washington and Beijing clash. Its technological edge in chipmaking may help it grab an outsized portion of demand for advanced high-performance semiconductors, particularly as countries roll out ultra-fast fifth generation wireless networks. TSMC’s business has bottomed and should begin to rebound, Chief Executive Officer C. C. Wei said.“We have passed the bottom of the cycle of our business, and should see our demand increase,” he told reporters in Taipei Thursday. “We see very, very strong demand” in the second half of 2019.Orders for crypto-mining gear are expected to help TSMC’s third-quarter sales, according to Morgan Stanley, which recently lifted its target price on the stock by 9%. The typical year-end ramp up of iPhone manufacturing and a new chip-product cycle from Advanced Micro Devices Inc. could also buoy the top line.“The guidance shows that management is confident on the recovery of demand in 2H, possibly boosted by new orders from AMD,” Bloomberg Intelligence Charles Shum said. “And, we expect the gross margin can return to 50%” by the fourth quarter.TSMC and its industry peers are grappling with a plateauing smartphone market, efforts by top customer Apple to move beyond hardware, and U.S. tech-export curbs that have hammered No. 2 customer Huawei. It previously reported a 4.5% slide in first-half revenue -- its worst January-to-June performance since 2011.As the world’s largest player in the business of made-to-order chips, TSMC is a barometer for the broader industry as well as Apple, which accounts for about a fifth of its revenue.Its better-than-projected outlook underscores expectations the industry is bottoming out after a dismal few years, when consumers took longer to replace their smartphones and Bitcoin prices collapsed. The company on Thursday however signalled its intention to invest for the future, saying its annual spending on capacity and upgrades could exceed $11 billion this year.TSMC’s shares stood largely unchanged before the announcement and have gained more than 12% this year.(Updates with CEO’s comments from the fourth paragraph.)\--With assistance from Cindy Wang, Gao Yuan, Sheryl Tian Tong Lee and Adela Lin.To contact the reporter on this story: Debby Wu in Taipei at firstname.lastname@example.orgTo contact the editors responsible for this story: Edwin Chan at email@example.com, Colum MurphyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- All eyes will be on Taiwan Semiconductor Manufacturing Co.’s outlook after the world’s largest contract chip manufacturer suffered its worst sales drop in nearly eight years.Analysts expect the company’s third-quarter estimates -- due today after the close of trading -- to point to a revival after it took a hit from slowing demand amid U.S.-China trade tensions. At stake is the stock’s $35 billion rebound in market value since a January low.Apple Inc.’s ramp up of iPhone manufacturing and a new product cycle from Advanced Micro Devices Inc. are seen by Bank of America Merrill Lynch analysts to lift sales, which would also be boosted if President Donald Trump loosens trade restrictions on key customer Huawei Technologies Co.TSMC’s Sales May Swing Back to Growth on Huawei Orders: ReactAnalysts have forecast sales in the period to grow 15% from a quarter earlier, according to the average of 22 estimates compiled by Bloomberg. The company’s shares are up 12% this year, despite being whipsawed as the trade war escalated. They edged 0.6% higher Thursday morning.“The company’s second-half outlook looks to be improving, and third-quarter guidance will probably be strong given that some of the lingering uncertainty has started to fade,” said John Tsai, portfolio manager at Eastspring Investments Ltd. in Singapore. The trade spat between Japan and South Korea may also help TSMC, as Samsung Electronics Co. customers such as Qualcomm Inc. may seek to diversify, he added.TSMC saw sales drop 4.5% year-on-year in the first half, its worst performance since 2011. The company was grappling with the impact of a slowing global smartphone market and efforts by its biggest customer Apple to move beyond hardware. Then the trade war escalated into the U.S. blacklisting Huawei, TSMC’s second-largest customer.Yet its leading position in advanced technology, especially in 5G and artificial intelligence, helped it secure revenue. Chip orders for crypto mining are also expected to help TSMC’s third-quarter sales, according to Morgan Stanley, which recently lifted its target price on the stock by 9%.TSMC investors will also receive a NT$207 billion ($6.7 billion) dividend payout Thursday, according to stock exchange and company statements. The company is aiming for a dividend per share of at least NT$10 to lure value investors, something Bank of America Merrill Lynch analysts Robin Cheng and Mike Yang see as possible in 2020. They argue that rising free cash flow justifies a re-rating of the stock.Here are some highlights of 3Q 2019 estimates:Gross margin: 48.3% (19 estimates)Revenue: NT$276.6b (22 estimates)Net income (GAAP): NT$96.04b (20 estimates)Operating profit: NT$103.5b (15 estimates)Timing: release after market July 18(Updates prices.)To contact the reporters on this story: Cindy Wang in Taipei at firstname.lastname@example.org;Debby Wu in Taipei at email@example.comTo contact the editors responsible for this story: Sofia Horta e Costa at firstname.lastname@example.org, David Watkins, Philip GlamannFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Chief Technology Officer & EVP of Advanced Micro Devices Inc (30-Year Financial, Insider Trades) Mark D Papermaster (insider trades) sold 30,000 shares of AMD on 07/15/2019 at an average price of $33.34 a share. Continue reading...
Advanced Micro Devices Inc. is the chip maker to watch this earnings season as the company takes on Intel Corp. and Nvidia Corp. amid problems in the sector that are expected to show signs of improvement.
In the latest trading session, Advanced Micro Devices (AMD) closed at $33.85, marking a -1.57% move from the previous day.
SANTA CLARA, Calif., July 16, 2019 -- AMD (NASDAQ: AMD) announced today that it will report second quarter 2019 financial results on Tuesday, July 30, 2019 after the close of.
Intel Corp. may have a better-than-expected June-ending quarter at the expense of next quarter as PC sales rose partly in anticipation of upcoming tariffs in the ongoing U.S. trade war with China.
Shraes of Advanced Micro Devices (NASDAQ:AMD) broke out to fresh multi-year highs yesterday. AMD stock finally closed above the $34 level after three previous failed tries. Momentum traders rejoiced, although shares did finish slightly off the highs of the day.Advanced Micro Devices has now added on over 30% since the lows near $26.50 in late May. All good things must come to an end, though. The red-hot rally in an overbought and overvalued AMD has come too far, too fast. Time to take some chips off the table.InvestorPlace contributor Jay Yao recently pointed out both the bullish and bearish case for AMD stock. He noted that AMD stock price was comparatively expensive, trading at a forward P/E of 33. Advanced Micro Devices is certainly expensive on trailing P/E basis with shares now sporting a multiple of 137! This is by far the richest valuation over the past year. The only other time AMD exceeded a 125 trailing P/E was in June, which marked a significant short-term top in the stock price.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Click to EnlargeAdvanced Micro Devices is looking overdone from a technical perspective as well. AMD stock price is up over 80% year-to-date. Momentum is approaching an extreme reading near 5 which has corresponded to powerful pullbacks in the past. Bollinger Band Percent B is back above 1, signaling overbought levels.AMD stock is trading at a large premium to the 20-day moving average. Previous instances when AMD traded at such a large premium led to a move back to the 20-day moving average. Click to EnlargeEarnings for Advanced Micro Devices are due in late July with expectations for 9 cents in EPS on $1.52 billion in revenues. The last four quarters have seen AMD earnings come in within a penny or two of expectations. Given the historically rich valuations and overbought technicals, it will take a blow out quarter to propel AMD appreciably higher. I don't see that happening. Click to EnlargeStock traders should look to short AMD on any further strength. The initial price target is the 20-day moving average near $31.Option traders may want to take advantage of high implied volatility in front of earnings and sell an out of the money bear call spread. Selling the Aug $38/$40 call spread would bring in 40 cents credit while risking $1.60 for a 35% return on risk. The $38 strike price provides a 10.5% upside cushion to the $34.39 closing price of AMD.As of this writing, Tim Biggam did not hold a position in any of the aforementioned securities. Anyone interested in finding out more about option-based strategies or for a free trial of the Delta Desk Research Report can email Tim at email@example.com. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip * 7 Services Stocks to Buy for the Rest of 2019 * 6 Stocks to Buy and 1 to Sell Based on Insider Trading The post The AMD Stock Rally Has Gotten Way Too Advanced in Front of Earnings appeared first on InvestorPlace.
Advanced Micro Devices Inc NASDAQ/NGS:AMDView full report here! Summary * Perception of the company's creditworthiness is positive * Bearish sentiment is moderate and increasing * Economic output for the sector is expanding but at a slower rate Bearish sentimentShort interest | NegativeShort interest is moderately high for AMD with between 10 and 15% of shares outstanding currently on loan. This represents an increase in short interest as investors who seek to profit from falling equity prices added to their short positions on June 20. Money flowETF/Index ownership | NeutralETF activity is neutral. ETFs that hold AMD had net inflows of $11.14 billion over the last one-month. While these are not among the highest inflows of the last year, the rate of inflow is increasing. Economic sentimentPMI by IHS Markit | NegativeAccording to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Technology sector is rising. The rate of growth is very weak relative to the trend shown over the past year, and has continued to ease. However, the rate of expansion may accelerate in the coming months. Credit worthinessCredit default swap | PositiveThe current level displays a positive indicator. AMD credit default swap spreads are decreasing and near the lowest level of the last three years, which indicates improvement in the market's perception of the company's credit worthiness.Please send all inquiries related to the report to firstname.lastname@example.org.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
Advanced Micro Devices (NASDAQ:AMD) is back at the highs. The AMD stock price cleared $33 last week, something it's managed to do a few times in the past year. Each time, those levels have proven to be bad news for Advanced Micro Devices stock.Source: Shutterstock AMD stock got there for the first time last September, reaching a 12-year high at the time. It immediately dipped. After two more tries, the chip sector as a whole collapsed. The AMD stock price went from $33 to $17 in a matter of weeks.AMD stock briefly touched $34 last month. It fell promptly declined 15% over the next five sessions.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIt's pretty clear that levels around $33-$34 have proven to be resistance for the AMD stock price. The question now, particularly with Q2 earnings on the way in two weeks or so, is whether this time will be different. * 7 Dependable Dividend Stocks to Buy The Risks to the AMD Stock PriceThere are three reasons to see current levels as potentially risky for Advanced Micro Devices stock. The first is precisely that history, particularly in the context of chip stocks more broadly. Big earnings from Micron (NASDAQ:MU) have helped boost the sector in recent weeks, admittedly.But semiconductor stocks have seen quite a bit of volatility over the past year. Micron may have touted optimism - but Broadcom (NASDAQ:AVGO) did largely the opposite. Even before those reports, this has been a space where investors are best off zigging while the market zags, buying when sentiment turns sour and selling when optimism returns. That's held for AMD as well, obviously, given the stock has doubled from December lows.As such, resistance here may be firm. And that risk is buttressed by fundamental concerns. As I wrote last month, at those June highs, AMD stock isn't cheap. It trades at over 32x next year's consensus EPS. The average Wall Street price target still sits below the current price.Analysts don't always have it right, obviously (that's been particularly true in the chip space over the past eighteen months), but 32x is a big multiple for chip stock. Investors in Nvidia (NASDAQ:NVDA) learned what happens when an investor overpays for growth in such a cyclical industry. If only on a short-term basis, investors in Advanced Micro Devices have learned the same lesson a few times.And the third risk for AMD is the earnings report on the way, likely at or around the end of this month. Expectations clearly are high. AMD has stumbled after earnings in the past - most notably with a 22% decline after the Q3 report in October. AMD needs a big quarter to keep a repeat from occurring this time around. The Case for Advanced Micro Devices StockThe simple answer to all those worries is: so what? AMD stock has climbed the "wall of worry" for years now. After all, this was a $2 stock as recently as 2016, with real fears that the company might eventually declare bankruptcy.That's obviously no longer the case. AMD's new chips have made it a formidable competitor to Nvidia and Intel (NASDAQ:INTC). Intel's repeated mistakes only increase the possibility of more market share gains, more growth, and a higher AMD stock price. And those self-inflicted wounds at AMD's key competitor, along with reports of strong PC sales, suggest Q2 numbers will be impressive.Broadly speaking, this simply is a much better business than it was, and it's a really good business on its own. The "old" Advanced Micro Devices was a second-tier provider of chips for low-priced PCs. But it's now a more diversified player in terms of both PCs and growing end markets like data centers. AMD stock might not be cheap, but it shouldn't be cheap. The Bottom Line on Advanced Micro Devices StockBoth sides can make a strong case at the moment, which makes Q2 earnings particularly important. Technically and fundamentally, AMD stock is likely to move further in whatever direction it trades after the report.Big numbers lead to higher earnings estimates and likely a series of analyst upgrades that can further goose the stock. That, in turn, pushes AMD through resistance, which usually (though not always) triggers higher prices.Anything less, however, and history suggests Advanced Micro Devices stock could have a problem. We've seen AMD move from $33+ to under $30 in a blink. Bad news, or even an outlook that doesn't quite match currently optimistic expectations, could do the same, or worse.All told, I'd expect that a month or two out, AMD stock isn't trading at $33. But which way it moves will depend largely on what kind of story Advanced Micro Devices can tell with its second-quarter report.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dependable Dividend Stocks to Buy * 10 Stocks Driving the Market to All-Time Highs (And Why) * 7 Short Squeeze Stocks With Big Upside Potential The post Advanced Micro Devices Stock Could Be Set to Finally Bust Through appeared first on InvestorPlace.
Stocks stagnated on Monday, as investors gear up for the start of earnings throughout the week. Let's look at a few top stock trades to kick off the week. Top Stock Trades for Tomorrow 1: Symantec Click to EnlargeBroadcom (NASDAQ:AVGO) is reportedly walking away from talks to buy Symantec (NASDAQ:SYMC), causing the latter to drop by almost 12% on the day. On the plus side though, SYMC is rallying off its low. InvestorPlace - Stock Market News, Stock Advice & Trading TipsShares are up off the lows and north of the 200-day and 50-day moving averages. For those that feel compelled to buy SYMC -- I am not one of them -- they may want to consider using a stop loss at Monday's lows. If that's too tight, then we at least need to see the stock hold these two key moving averages. See if it can climb over its 20-day moving average on the upside, or if it acts as resistance. Top Stock Trades for Tomorrow 2: Advanced Micro Devices Click to EnlargeAdvanced Micro Devices (NASDAQ:AMD) surged to $34 and backed off last week. On Monday, it's right back to its bullish ways, pushing up to new highs. The stock is holding up over $34, while prior resistance at $33 is now proving to be support. As long as this one holds the 20-day, uptrend support and $33, investors can keep riding it higher. Below and AMD may need some time to digest the gains. Top Stock Trades for Tomorrow 3: Twitter Click to EnlargeLast week, shares of Twitter (NASDAQ:TWTR) broke out over downtrend resistance (blue line). It's now over its 20-day and 50-day moving average as well. As far as upside targets go, $40 would bring TWTR back near its May highs, while a run to $42 would fill the gap from last July. Shares need to hold above $37 to keep the setup intact. Top Stock Trades for Tomorrow 4: Netflix Click to EnlargeNetflix (NASDAQ:NFLX) remains range-bound, stuck between $340 and $385. If I were long NFLX, I would like to see the stock cooling off as it is ahead of its July 17th earnings report. Going in too hot could cause a selloff. On its post-earnings reaction, see if NFLX can breakout over $385 or hold $340 on a pullback. Sooner or later, we'll have some action. Top Stock Trades for Tomorrow 5: Guardant Health Click to EnlargeGuardant Health (NASDAQ:GH) shares are moving well on Monday, up almost 10%. Shares are pushing through current resistance near $92.50 to $94. As long as it holds above this mark, a push to $100 and possibly the 52-week highs near $106.50 are in play. * 7 Dependable Dividend Stocks to Buy If prior resistance fails to hold as support, see that uptrend support near $85 holds. Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dependable Dividend Stocks to Buy * 10 Stocks Driving the Market to All-Time Highs (And Why) * 7 Short Squeeze Stocks With Big Upside Potential The post 5 Top Stock Trades for Tuesday: AMD, TWTR, NFLX appeared first on InvestorPlace.
Wall Street loves turnaround stories. Over the years, investors in Advanced Micro Devices (NASDAQ:AMD) stock have been delighted with the price performance of their shares. I'm going to discuss the short- and long-term outlook of AMD stock, one of the darlings of Wall Street in 2019.Source: Shutterstock AMD stock is expected to report Q2 earnings on July 24. Year-to-date, the Santa Clara-based chip designer is up about 93%. Long-term, I believe AMD stock price is going to rise much more. However, in the short-term, as AMD stock and its peers get ready to release quarterly results, there could be increased volatility in the markets. * 7 Dependable Dividend Stocks to Buy I would encourage long-term investors to wait several weeks before buying AMD stock or hedge their positions if they currently own the stock.InvestorPlace - Stock Market News, Stock Advice & Trading Tips What to Expect From AMD Stock EarningsWhen AMD releases earnings in late July, Wall Street will pay attention to two segments: * Computing and Graphics and * Enterprise, Embedded and Semi-CustomOn April 30, Advanced Micro Devices reported its Q1 2019 earnings. Its profit of 6 cents per share came in slightly ahead of analysts' consensus outlook. In its Computing and Graphics segment, AMD's revenue tumbled 26% year-over-year (YoY) to $831 million. In the Enterprise, Embedded and Semi-Custom segment, its revenue fell 17% YoY to $441 million.Overall many analysts saw the Q1 earnings report as a sign that AMD is executing its strategic plans well. In the current quarter, AMD management expects its revenue to be about $1.52 billion, a decrease of approximately 13% YoY.Since late 2014, under the leadership of CEO Lisa Su, revenue has gone up and the company has been improving its balance sheet. Its debt has reduced and investors are hopeful that AMD stock can see positive cash flow soon. Over the next five years, analysts expect AMD to grow earnings by about 30% annually.As new frontiers in technology, such as the internet of things (IoT), artificial intelligence (AI), autonomous driving, and 5G are being developed, I am bullish on the future of Advanced Micro Devices, which has been quite successful in recent years. As a result, I am also upbeat on the long-term outlook of AMD stock.Yet, recent positive news from Advanced Micro Devices stock's earnings and its clients have been factored into AMD stock price. Until AMD's next earnings announcement, its stock is likely to become a battleground between long-term investors and short-term traders.AMD has a history of reporting mixed results. Therefore Wall Street is likely to be cautious going into earnings. AMD Stock Is Catching up With Its Main CompetitorsUntil 2019, Advanced Micro devices has mostly played catch-up with Nvidia (NASDAQ:NVDA) and Intel (NASDAQ:INTC). The market cap for NVDA and INTC stocks are $101 billion and $223 billion respectively. AMD stock's market cap stands at $37 billion.Nvidia has dominance in graphics processing units (GPUs) while Intel has been a leader in central processing units (CPUs), the computing engine of most computers and data centers. Graphics processing units accelerate central processing units, boosting the performance of video and graphics and improving computers' overall performance.In May, the U.S. Department of Energy announced that AMD and Cray (NASDAQ:CRAY) had been awarded a $600 million contract to develop the 'Frontier' supercomputer. Expected to become the world's fastest computer, Frontier will perform advanced calculations in areas like nuclear and climate research.The supercomputer will use AMD's EPYC CPUs, each of which will be connected to four of the company's Radeon Instinct GPUs. This important deal confirms that AMD is now a recognized industry leader. In other words, AMD has a roadmap to compete with Intel's dominant CPUs and Nvidia in the graphics-card space.In Q3 AMD is expected to start selling its 7-nanometer (nm) chips, rivaling Intel's 10nm, which will not be sold until the end of the year. With these smaller and more power-efficient chips, AMD is aiming to take market share from Intel, especially in data center business.As AMD launches its Navi graphics cards in Q3 featuring the company's 7-nanometer chips, management is confident that it will take GPU market share in the gaming segment from Nvidia.In short, Advanced Micro Devices has taken important steps to make the fundamental metrics of the company stronger and to catch up with its main competitors. What Could Derail AMD Stock Short-Term?Wall Street has recently been debating whether the semiconductor industry, which is highly competitive and cyclical, has entered a prolonged downturn. Could these chip stocks have reached their 2019 highs in the eyes of investors?For long-term investors, such gyrations in the sector are nothing new. Yet, in the coming weeks when many chip companies announce their earnings one after the other, any potential weak guidance that may be issued could lead investors to become bearish on semiconductor stocks.Wall Street is nervous that chip companies' upcoming results will be mixed. Analysts follow AMD's gross margin levels closely. The company expects its Q2 gross margin to be 41%, the highest in eight years. Therefore, any unexpected dip in the margin could easily push AMD stock price south.China is the leading consumer of semiconductors (more than 50%). On the other hand, U.S. chip companies lead the world with a combined global market share of nearly 50%. Furthermore, many technology companies either have manufacturing plants in China or use Chinese companies in their supply chains. Therefore, Wall Street fears that U.S. chip makers will be among the largest losers of the current trade war.Furthermore, analysts are debating whether Advanced Micro Devices stock is becoming overvalued. For example, its forward price-to-earnings-growth (PEG) ratio is about 2x. Similarly, AMD stocks's price-sales (P/S) ratio of about 6x is also quite high. To put the metric into perspective, the S&P 500's average price-sales ratio is 2.1. Should Investors Buy AMD Stock Prior to Earnings?As a result of the impressive run-up in AMD stock price in 2019, its short-term technical indicators have become quite "overbought." In June, in addition to the broader market rally, AMD stock got an analyst upgrade that gave a big boost to its price.If you are an investor who follows technical charts, AMD stock has strong resistance around the $34 level, where the stock is about to make a triple top. Therefore, if it cannot go and stay over $35 soon, some profit-taking is likely to occur.Because AMD is a momentum leader stock, investors should expect sizable daily swings in the AMD stock price. Technically AMD stock is known to make a series of rallies and consolidations. We can expect this trend to continue in July and August, too.If you already own Advanced Micro Devices stock, you might want to stay the course and hold onto your position. That said, if you are worried about short-term profit taking, then within the parameters of your portfolio allocation and risk/return profile, you may consider placing a stop loss at about 3%-5% below the current price point, to protect the profits you have already made from AMD stock.If you are an experienced investor in the options market, you may also consider using an Aug. 16 expiry at-the-money (ATM) covered call strategy. In that case, you may, for example, buy 100 shares of AMD at a limit price of $33 and sell an AMD Aug. 16 $33 call option, which currently trades at $2.4.The $33 option offers some downside protection in case of volatility and a decline of AMD stock price. It would also enable investors to participate in a potential up move. This call option would stop trading on Aug. 16 and expire on Aug. 17.I find AMD stock to be a buy candidate, especially as its price declines below $30. In a few years, I'd expect the shares to reach $40.As of this writing, the author holds INTC covered calls (July 19 expiry). More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dependable Dividend Stocks to Buy * 10 Stocks Driving the Market to All-Time Highs (And Why) * 7 Short Squeeze Stocks With Big Upside Potential The post Can AMD Stock Jump Higher on Q2 Earnings? appeared first on InvestorPlace.
The Dow Jones Industrial Average is being stingy with its strong 1.5% gain from last week. Netflix is selling off and faces a key test at the 50-day.
After a nearly 80% year-to-date rally, Advanced Micro Devices (NASDAQ:AMD) is back near its 52-week highs of $34.30. Given that AMD stock fell below $20 late last year, many investors wonder if AMD can hit new highs convincingly or if the stock will once again fail at this level. There are compelling points to be made for both the bear and bull case. Source: Shutterstock InvestorPlace - Stock Market News, Stock Advice & Trading Tips Reasons to be Bearish on AMD StockThere are a few reasons AMD stock price might struggle to top $35. Many traders like to break even, and for those who bought near AMD's highs last September, there is temptation to sell to avoid any replay last year's fourth-quarter plunge. This selling could lead to technical resistance near $34. * 7 Stocks to Buy for Monster Growth in the Second Half of 2019 In terms of valuation, AMD stock is expensive. AMD trades at a forward P/E of 33 and doesn't pay a dividend. Meanwhile, much larger competitor Intel (NASDAQ:INTC) trades at a forward P/E of 10.8 and pays a dividend that yields around 2.6%. Compared to Intel, Advanced Micro Devices is undersized and lacks the economies of scale and financial resources that Intel has. Many of AMD's current gains are also arguably due to a temporary situation. Due to various delays, Intel is behind AMD in process node technology. And as a result, AMD already has already begun shipping its 7nm Ryzen CPUs, while Intel doesn't plan to launch a 7 nm processor until 2021. AMD's head start with 7 nm processors allows it to steal market share from Intel -- until Intel comes out with its 10 nm processors. According to many analysts, Intel will have an a 10 nm CPU for desktops next year and for laptops this summer. Although Intel is behind AMD currently, Intel will very likely catch up and surpass AMD given its much larger R&D budget. When that happens, market sentiment around AMD might not be as great as it is today. Reasons to be Bullish on AMDHowever, there are several reasons to believe AMD will rocket to new highs.First, stocks don't trade for fair valuation at all times. Many people buy or sell stocks for trades based on technicals or to play catalysts in the future. The buying and selling for non-fundamental reasons could cause AMD to trade higher than its fundamental value in the near future, especially given AMD's strong upward technical trend and the recent positive news surrounding the stock. In terms of the past positive news, AMD has had a number of big contract wins in 2019 ranging from Samsung agreeing to use AMD Radeon graphics tech for its mobile phones to Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG)'s Google agreeing to use AMD's custom GPUs to power its Stadia game-streaming service.Analysts have also upgraded AMD stock, with Nomura analyst David Wong raising his target price to $37 from $33 due to AMD's promising Ryzen desktop processing units. There could be more good news in the future. More analysts could upgrade the stock. AMD could win more big contracts. The U.S. and China could potentially settle their differences, and the end of the trade war would the entire semiconductor sector. If the semiconductor sector goes higher, there will be buying in AMD and the stock could more easily hit a 52-week high. * 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond The Bottom Line on AMD StockOwning a stock near 52-week highs is a good sign -- if the market is strong. Given that the Fed is considering easing interest rates and the major indices have been hitting new all-time highs, AMD has a good probability of breaking through possible resistance and hitting new 52-week highs.As of this writing, Jay Yao did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Buy for Less Than Book * 7 Marijuana Stocks With Critical Levels to Watch * The 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond The post Can the Bulls Send AMD Stock Rocketing to New Highs? appeared first on InvestorPlace.
Not long ago, NVIDIA (NASDAQ:NVDA) seemed to be invincible. By leveraging its GPU (Graphics Processing Unit) franchise, the company penetrated lucrative markets in categories like data center and AI (Artificial Intelligence). The result is that Nvidia stock has been a big winner for investors. For the past three years, the average annual return was a sizzling 53.82%!Source: Shutterstock But lately things have gotten tougher. The fact is that the Nvidia stock price is feeling the pressure of competition. The irony is that it is not from well-funded startups that have disruptive technologies. Rather, one of the scariest rivals is Advanced Micro Devices (NASDAQ:AMD). The company's CEO, Lisa Su, has pulled off a near miraculous turnaround. And the key has been an obsession on innovation.In fact, AMD is starting to take the lead on NVDA, which is certainly amazing. Keep in mind that NVDA has huge global scale and enormous resources, with a market cap of $95 billion. By comparison, ADM's market cap is about $36 billion.InvestorPlace - Stock Market News, Stock Advice & Trading TipsA stark illustration of the fight among these two semiconductor companies: AMD's Navi-based RX 5700 and RX 5700 XT chips. These are focused on the large PC gaming market and, for the most part, it looks like AMD has the performance lead (this is based on analysis from Tom's Hardware). There have also been notable improvements in power efficiency. * 7 Stocks to Buy for Monster Growth in the Second Half of 2019 Oh, and something else: Advanced Micro Devices has made things even more difficult for NVDA stock by reducing the pricing on the chips. That is, there is negligible difference. In other words, why wouldn't customers opt for the AMD chips?I don't see why not.Now this is not a one-off. Keep in mind that the Ryzen 3000 chips have also shown to be worthy alternatives to NVDA's offerings.Granted, all this does not spell the doom of the company. Again, NVDA is diversified and still has a powerful R&D infrastructure. The competition should actually provide a spur to boost the innovation, which should help with the long-term.Despite this, there are still other nagging issues with NVDA stock besides the competition with AMD: * Even though the company remains dominant with AI chips, this segment is likely to see more and more headwinds. Note that tech giants like Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG), Microsoft (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN) are building their own chips. * While the G20 summit had good news on the trade front -- with a truce between the US and China as well as a lessening of restrictions on Huawei -- there are still risks. President Trump can be mercurial. China also is experiencing slower growth, which could weigh on NVDA. * The latest quarterly report did beat expectations, but the results were still unnerving. Revenues plunged 31% to $2.22 billion on a year-over-year basis, as there was widespread weakness across gaming and the data center. Bottom Line On NVDA StockIt's true that NVDA is trading at a reasonable valuation, with a forward price-to-earnings multiple of 22. The company also should get a boost from its acquisition of Mellanox Technologies (NASDAQ:MLNX), which is a leader in technologies for high-speed networks. And, yes, when it comes to the AI market, the opportunity is enormous for NVDA stock. Keep in mind that GPUs are ideal for this type of technology, allowing for super-fast performance at low cost. * 10 Stocks to Sell for an Economic Slowdown But in the near-term, there is likely to be turbulence, especially as AMD gains ground and the company takes steps to stabilize the revenue base.So, for now, it's probably best to hold off on the stock.Tom Taulli is the author of the upcoming book, Artificial Intelligence Basics: A Non-Technical Introduction. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell for an Economic Slowdown * 7 Marijuana Penny Stocks That I May Buy * 7 of The Best Schwab ETFs for Low Fees The post Nvidia (NVDA) Stock Has An AMD Problem appeared first on InvestorPlace.
Personal computer sales grew slightly in the second quarter, as companies tried to get more products out of China before more tariffs hit, combined with a better supply situation from Intel Corp.
Technology is a sector that houses some of the biggest investment opportunities ever seen. In fact, outside of the banking industry, more tech companies are among the 50 largest companies in the world by market cap than any other industry, with companies like Apple Inc (NASDAQ: AAPL), Amazon.com, Inc. (NASDAQ: AMZN), Alphabet Inc (NASDAQ: GOOG), and Microsoft Corporation (NASDAQ: MSFT) leading the charge. At the end of the day, as technological innovation changes the way that we do just about everything, investment opportunities emerge.
After several years of major market outperformance, semiconductor giant NVIDIA Corporation (NASDAQ: NVDA) has traded mostly in-line with the market so far in 2019. Nvidia’s inference technology coupled with artificial intelligence spending by cloud providers will create a perfect storm of demand for the chipmaker, Ross said in a Thursday upgrade note. Unfortunately, hese trends will likely not have a significant impact on Nvidia’s revenue numbers until the fourth quarter of 2019, Ross said — but added that investors can expect better visibility and positive commentary from management in the next two quarters.