51.35 0.00 (0.00%)
After hours: 4:27PM EDT
|Bid||51.32 x 800|
|Ask||51.34 x 21500|
|Day's Range||49.89 - 51.51|
|52 Week Range||42.36 - 59.59|
|Beta (3Y Monthly)||0.67|
|PE Ratio (TTM)||11.59|
|Earnings Date||Jul 25, 2019|
|Forward Dividend & Yield||1.26 (2.52%)|
|1y Target Est||51.74|
Huawei has set an ambitious shipment goal that would help it overtake Apple in the smartphone market.
IBD Stock Of The Day: VanEck Vectors Semiconductor ETF is in buy range, offering a way to play the chip stocks rally while limiting company-specific risk.
(Bloomberg) -- The U.S. and China are moving closer to their first face-to-face trade negotiations in months, with a meeting between tech executives and senior White House officials on Monday expected to mark another step toward easing a ban on sales to China’s Huawei Technologies Co.The White House invited many of the U.S.’s biggest technology companies including Microsoft Corp., Intel Corp., Cisco Systems Inc., Western Digital Corp. and Qualcomm Inc. to discuss economic matters -- with the subject of a possible resumption of sales to Huawei anticipated to be high on the agenda.The meeting between government officials and U.S. technology leaders may assuage Chinese concern that one of its largest technology companies is under existential threat from a blacklisting. But lawmakers and others in the administration who oppose any relief for Huawei could stymie any tentative progress in resolving a trade dispute between the world’s two largest economies.Chinese state media on Monday hailed signs of progress on Huawei as part of what it called efforts to display “sincerity and goodwill’’ by both sides. Any easing of restrictions on Huawei is expected to be met with a resumption of Chinese purchases of U.S. soybeans and other agricultural commodities.The moves, which followed a meeting between President Donald Trump and China’s Xi Jinping in Japan late last month, are meant to clear the way for a trip to China by U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin as soon as next week.Such a trip would mark the first high-level negotiating mission to China since talks broke down in May.Business PerspectiveNational Economic Council director Larry Kudlow and Mnuchin are due to lead the meeting, which Commerce Secretary Wilbur Ross is also scheduled to attend. It was called to inject a business perspective into a debate that has often been driven by an intelligence and national security community eager to see an outright ban on Huawei, the person said.Xiaomeng Lu, international policy manager and head of the China practice at Access Partnership, said the meeting is an opportunity for U.S. companies to demonstrate how resuming sales to Huawei’s consumer business can help American corporations innovate better and outperform the Chinese telecoms giant in the long run.Trump will very likely face backlash from Congress if he chooses to allow shipments to the Chinese telecoms giant, especially after the Washington Post Monday reported that the company helped build North Korea’s 3G network in a potential violation of U.S. export control laws.Legislative Push BackMany U.S. lawmakers, including hawks in Trump’s own party, are opposed to the president’s approach on the issue and have made the case for a complete decoupling of supply chains that would cut off Huawei from American components.“At every turn, we learn more and more about what a malign actor Huawei is,” Senators Tom Cotton and Chris Van Hollen said in a statement following the Washington Post report. The revelation underscores Huawei’s serial violations of U.S. law, they added, saying it’s crucial Congress pass legislation they’ve sponsored.A spokesman for the Commerce Department, which oversaw the blacklisting of Huawei in May, declined to comment.Also expected at Monday’s meeting were executives from Alphabet Inc.’s Google, Micron Technology Inc. and Broadcom Inc., according to people familiar with the invitation list.Semiconductor TechnologyMost of those invited are suppliers of technology to Huawei, one of the biggest makers of smartphones and computer-network equipment. The chipmakers in particular have said that a blanket ban on doing business with the Chinese company may do more harm than good to U.S. national security. Many of the components they supply to Huawei can be easily obtained from companies elsewhere and jeopardizing their access to their biggest market risks cutting them off from revenue that’s vital to investing in their ability to maintain the U.S.’s lead in semiconductors, they’ve argued.Chinese companies, meanwhile, have begun asking U.S. exporters about buying agricultural products and also applied for exemptions from China’s retaliatory tariffs on the goods, state-run Xinhua News Agency reported Sunday.The Chinese government met on Friday with domestic soybean buyers about a plan to purchase more U.S. supplies, according to people familiar with the situation. That could include waiving China’s retaliatory tariffs, but details have bot been decided yet, the people said.Face-to-FaceWith China’s top leadership likely to be out of Beijing from early August for their annual seaside conclave, people close to the talks say there is a narrow window for face-to-face meeting in the coming two weeks. Mnuchin, Lighthizer and their Chinese counterparts talked by phone last week for the second time since the two nations’ presidents met.Separate to the possible agricultural purchases, China announced Saturday new measures to further open up the nation’s financial sector to foreign investors. Foreign companies will be able to take a stake in or control entities including wealth management units of commercial lenders, pension fund managers and currency brokers.The changes weren’t announced as directly related to the trade talks with the U.S., but American criticism of China’s protection of various domestic markets is a core issue in the ongoing trade tensions.\--With assistance from Miao Han.To contact the reporters on this story: Shawn Donnan in Washington at email@example.com;Jenny Leonard in Washington at firstname.lastname@example.org;Ian King in San Francisco at email@example.comTo contact the editors responsible for this story: Margaret Collins at firstname.lastname@example.org, Alister BullFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Intel Corporation (INTC) is expected to report its Q2 earnings results after market close Thursday. YTD, INTC stock is up 8.4%, significantly underperforming the S&P 500's 17.1% climb.
Intel Corp. may have a better-than-expected June-ending quarter at the expense of the next as PC sales rose in part in anticipation of upcoming tariffs in the ongoing U.S. trade war with China, and at least one analyst cautions that will cause the chip maker to slash its outlook for the year again.
Technology stocks shouldered much of the stock market's gains Monday, with the sector nearly alone in making gains.
U.S. President Donald Trump is expected to drop in on a Monday meeting of top technology companies, including the chief executives of Intel Corp and Broadcom Inc, held to discuss blacklisted Huawei Technologies Co Ltd and other topics, two people briefed on the matter said. White House economic adviser Larry Kudlow will preside over the roundtable, which was confirmed by a White House official on Friday. The official said executives from Alphabet Inc's Google and Micron Technology Inc will also attend and that it had been called to discuss economic matters.
We've seen an interesting development in the U.S. chip market. While that includes a number of stocks and equipment makers, three stocks often grouped together are Nvidia (NASDAQ:NVDA), Intel (NASDAQ:INTC) and Advanced Micro Devices (NASDAQ:AMD). Is Intel stock the best among the three?Source: Shutterstock I don't think so, personally.While it may have a low valuation and the most attractive dividend yield of the bunch, it's got stagnant growth and trails in several key growth markets. With that said, it's hard to fight the tape as the price action in INTC stock looks attractive.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Defense Stocks to Buy to Fortify Your Portfolio Let's explore this name a little more closely. Valuing INTC StockIntel stock price has fallen 2% over the last year. That far outpaces the 31.8% fall in Nvidia, but badly lags the 101% run in AMD. Owning all three of these stocks isn't a terrible idea for an investor who wants exposure, but wants to diversify as well.That allows investors to take advantage of Intel's dividend and AMD's strong top- and bottom-line growth.When focusing solely on INTC stock, here's what we're looking at: Shares trade at just under 12 times earnings, which is quite cheap in most investors' eyes. However, analysts expect earnings to decline 7.4% this year before rebounding just 4.7% next year. On the revenue front, estimates call for a 3.5% decline this year and a 3.9% rebound in 2020.Essentially, we're looking at 2020 revenue being just a bit higher than 2018, while analysts actually expect 2020 earnings to be lower than 2018. Now you see why Intel stock price comes with such a low valuation.That's not attractive to me when it comes to the chip space. While Nvidia and AMD may command higher valuations, the outlook is better. AMD has positive growth forecasts for this year and strong growth priced in for 2020. Nvidia analysts expect a revenue and earnings slowdown this year, but a robust rebound next year.Shares of Intel do yield 2.52%, which is attractive among its immediate peers. However, if one is in search of income, they can do better than INTC stock.That said, it does have solid profit margins (about 29% over the trailing 12 months) and stout free cash flow ($12.5 billion over the last 12 months). Further, its balance sheet is solid too, with total assets of $129.4 billion more than doubling its total liabilities of $55.8 billion. Trading Intel Stock PriceFundamentally, I view Intel stock as a mixed situation. It's definitely not bad, but it's not kicking out the robust growth investors would like to see. That's why I feel so strongly about owning it as part of a basket approach with NVDA and/or AMD, but not as a standalone. Click to EnlargeThat being said, the charts are looking good.Intel stock price is flirting with a major move over the $50 mark. This level has played a key role over the past year and INTC stock is on the cusp of rallying through it.If it does push through, Intel stock faces the 50% one-year retracement at just under $51, and the 38.2% retracement near $53 after that. Should it get to the latter, it will be at its highest point since April, when the stock brutally collapsed from $57. Further, if it can get to that 38.2% mark, it will officially begin filling the gap back to the $57 mark.That doesn't mean it will get there necessarily, but it will be something to watch. That's particularly true if Intel stock can reclaim the 38.2% retracement.Now, if Intel stock price can't breakout over $50, or if it does and later fails to hold this mark as support, we have to look at the downside.The first level is the 20-day moving average, which is at $48.55 and near it is the 200-day at $48.64. The only reason I mentioned the 20-day first is because it's trending higher and will soon surpass the 200-day mark.Below both moving averages brings up the 50-day down at $46.61. If Intel finds itself below all three marks, it could put a test of $45 on the table. One thing is pretty clear though: Its earnings report on July 25th could be a major catalyst for a big move in either direction. In that case, know your levels.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 * 7 Defense Stocks to Buy to Fortify Your Portfolio * 10 High-Flying, Overvalued Stocks in Danger of Crashing * 8 Stocks to Buy That Are Growing Faster Than Amazon The post Is Intel Stock a Better Buy Than Nvidia, AMD? appeared first on InvestorPlace.
Amid all the talk of antitrust, government regulation and cryptocurrency plans, it might be nice for Big Tech just to focus on earnings this week — unless they are bad, of course.
The stock market hasn't received much news on China, but Beijing moved the needle over the weekend. China media said trade talks could resume soon.
INTC is riding high on robust performance from the CCG and data-centric portion of business. Delay in transition to 10-nm process is a concern.
President Trump eased the Huawei ban on June 28. Since then, investors have been closely monitoring how US officials implement the policy change.
Nvidia (NASDAQ:NVDA) stock has become a frustrating investment for longs. Over the last five years, NVDA has gone from a stock left for dead to becoming a driver for tech innovation. Certainly, in the coming years, Nvidia chips will probably power many of the latest technological advances. Click to Enlarge Source: Shutterstock The recent trading patterns of NVDA stock have left many investors confused. The stock has twice bounced back from close to the $130 per share level.However, with the stock seeing two significant pullbacks since October, Nvidia stock seems to lack a catalyst that will take it back to its highs. Until investors see more convincing price action, they should probably avoid Nvidia stock.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Defense Stocks to Buy to Fortify Your Portfolio Nvidia Has a Solid FutureRarely do investors see such a stark divergence between short term and long term. In the long run, prospects appear bright for NVDA. Nvidia should remain a leader in artificial intelligence (AI), virtual reality (VR), self-driving cars, and data centers, on top of its core gaming capabilities. Also, its recent move to acquire Mellanox (NASDAQ:MLNX) will likely bolster its data center capability.To be sure, NVDA faces still competition from old rivals, Intel (NASDAQ:INTC) and especially AMD (NASDAQ:AMD). As our own Tom Taulli states, AMD may have even taken the performance lead on PC gaming hips.InvestorPlace contributor Dana Blankenhorn also mentions the AI-based cloud solution will also put Nvidia at odds with Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG), Amazon (NASDAQ:AMZN), and Microsoft (NASDAQ:MSFT).Still, I also agree with Taulli that this challenge from AMD will likely spur Nvidia's R&D arm to speed the pace of innovation. Blankenhorn also points out that the development of the SuperPod should further demonstrate this competitive edge. As consumers and businesses widely adopt this technology, NVDA will probably rise well above the $292.76 per share record high. NVDA Is Range-BoundUnfortunately for Nvidia bulls, it will take years for any of this to help investors. Buying NVDA now for its long-term prospects could lead to years of frustration. Here's why.With the stock price close to $170 per share, it has risen substantially from its intraday low of $132.60 per share in early June. Admittedly, many would envy a 28% return over six weeks. Still, less than six weeks before hitting that low, NVDA peaked an intraday high of $192.81 per share before the drop.We do not know for sure what NVDA will do until we see how it behaves at the low-$190s per share level again. However, the price action indicates it may have become stuck in a range. At this point, I think investors should consider this a range-bound stock until proven otherwise.At the $170 per share price level, that means investors have slightly more than a 10% upside before the Nvidia price nears the top of that range. The downside of the range would mean a 20% to 25% loss. Hence it makes little sense to buy at this level.It also does not pay to buy and wait for the eventual long-term upside. NVDA has built a six-year streak of dividend increases. I also see little that would compromise future annual payout hikes. However, the 64-cent per share annual dividend yields only 0.38%. Traders can earn more than that on their money at the bank without the risk. The Bottom Line on Nvidia StockUntil proven otherwise, investors should assume that NVDA is a range-bound stock. Nvidia stock looks like a buy below $140 per share. It also becomes a likely buy if it stops falling below the $190 per share level. Hence, at around $170 per share, traders have more potential downside than upside in the short term.Once Nvidia's technologies see widespread adoption, the range should break. However, without a catalyst, investors face a negligible payout and possibly years of range-bound trading in their future. Until Nvidia gives traders a reason to buy it, I would stay away.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 Defense Stocks to Buy to Fortify Your Portfolio * 10 High-Flying, Overvalued Stocks in Danger of Crashing * 8 Stocks to Buy That Are Growing Faster Than Amazon The post Unfortunately, Nvidia Stock Won't Be Going Anywhere for Awhile appeared first on InvestorPlace.
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.
Intel's (INTC) launch of FPGA SDK and Xeon Scalable will drive top-line growth. However, decline in NAND flash pricing, lower platform revenues & expenses related to 4G modem ramp remains a headwind.
Qualcomm (NASDAQ:QCOM) has gotten a break on its controversial policy of linking chip sales to its patents, which could move Qualcomm stock in the short term. Click to EnlargeThe bump looks like a heartbeat on an EKG, a spike of $3.50 per share that came after the Department of Justice uttered the magic words "national security" in defense of what Judge Lucy Koh and the Federal Trade Commission have called an illegal monopoly.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIn a friend of the court brief filed with the Court of Appeals for the 9th Circuit, Justice was joined by the Departments of Defense and Energy in arguing that Koh's decision threatens American leadership in a crucial sector of the global economy.The letter is unequivocal: "Immediate implementation of the remedy could put our nation's security at risk, potentially undermining U.S. leadership in 5G technology and standard-setting, which is vital to military readiness and other critical national interests." * 10 Tech Stocks That Are Still Worth Your Time (And Money) Despite the letter, and a column from our own Bret Kenwell calling this "the perfect opportunity to profit from Qualcomm stock," shares fell steadily after the spike. They opened July 19 at about $74.40, $1.30 per share lower than before the DoJ letter came out. Qualcomm Stock and International TroublesOne reason was a $272 million fine the European Union levied against Qualcomm. This was for blocking a British modem chip maker named Icera, later bought by Nvidia (NASDAQ:NVDA) and closed, from the 3G baseband chip market a decade ago. Qualcomm calls the fine meritless.It's the second big EU fine in a year for Qualcomm, following a $1.1 billion levy over its treatment of Apple (NASDAQ:AAPL). Apple settled its legal argument with the San Diego company in May, sending the shares from the mid-50s to the mid-80s within a few days.Barclays (NYSE:BCS) analyst Blayne Curtis placed the Justice letter against the EU fine and dropped his rating on Qualcomm.The merit in the Justice Department's argument is nationalistic, not legal. It is a political letter. Questionable Tactics and QualcommQualcomm's tactics of "no license, no chips" have given it monopoly power as mobile operators and others begin spending big on 5G networking gear. Even Apple was forced to back down, seeing that Intel (NASDAQ:INTC) was too far behind Qualcomm to deliver a competitive design in a timely manner.But Qualcomm does face a potential rival in China's Huawei, called a big winner after Koh's decision . When the Apple case was still alive, in January, Qualcomm had reached an interim patent licensing deal with Huawei.The Koh decision, based on facts Apple gave the Federal Trade Commission, led veteran analyst Rob Enderle to say Huawei will now win the race to 5G, predicting the company will pivot to its own, proprietary designs and come back stronger, as Microsoft (NASDAQ:MSFT) did after its own antitrust fight.The argument is that Qualcomm CEO Steve Mollenkopf may be a son of a bitch, but he's our son of a bitch. The Bottom Line on Qualcomm stockKenwell's argument for Qualcomm stock is based on reading technical charts. Fundamentally he acknowledges the risk in Koh's decision and the European fines.But Qualcomm is now selling for less than four times its annual sales. Its dividend of 62 cents per share, well supported by earnings, represents a yield of 3.33%. That's better than what you get on a 30-year bond. This at a time when Adobe (NASDAQ:ADBE) is selling for over 15 times sales, without a dividend.If Qualcomm loses and must adjust its business practices, it's still going to win a big share of the 5G modem marketplace. If it wins, and the U.S. has now put its thumb on that scale, the stock is cheap.Dana Blankenhorn is a financial and technology journalist. He is the author of a new environmental story, Bridget O'Flynn and the Bear , available now at the Amazon Kindle store. Write him at email@example.com or follow him on Twitter at @danablankenhorn. As of this writing he owned shares in MSFT, AAPL, and NVDA. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Tech Stocks That Are Still Worth Your Time (And Money) * 7 Marijuana Stocks With Critical Levels to Watch * 7 of the Best Smart-Beta ETFs to Target Right Now The post National Security as Protectionism Will Keep Driving Qualcomm Stock appeared first on InvestorPlace.
(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. Face-to-face negotiations between the top Chinese and U.S. trade negotiators could happen soon, according to Chinese state media, after a number of goodwill gestures by Beijing over the weekend.Chinese companies asked U.S. exporters about buying agricultural products and also applied for exemptions from China’s retaliatory tariffs on the goods, state-run Xinhua News Agency reported Sunday. That shows China’s “goodwill” and its commitment to fulfill its promises to the U.S., Xinhua said early today in a separate commentary.The two sides have been “cautiously showing each other sincerity and goodwill” recently and may meet for discussions soon, according to Taoran Notes, a blog run by the state-owned Economic Daily newspaper. In China’s eyes, the U.S. exclusions from punitive tariffs imposed on some Chinese goods and its push to allow American companies to supply Huawei Technologies Co were positive signals to advance the talks, according to both Xinhua and Taoran.The Chinese government met on Friday with domestic soybean buyers about a plan to purchase more U.S. supplies, according to people familiar with the situation. That could include waiving China’s retaliatory tariffs, but details aren’t decided yet, the people said.Senior White House officials invited U.S. technology companies including Intel Corp. and Qualcomm Inc. to the White House on Monday to discuss a resumption of sales to Huawei, which is currently on a trade blacklist, according to people familiar with the matter.Meeting TimingWith China’s top leadership likely to be out of Beijing from early August for their annual seaside conclave, it is highly likely that a meeting between Vice Premier Liu He and his U.S. counterparts is not far away, according to the Taoran Notes post last night on the WeChat platform. The two sides spoke by phone Thursday to discuss “the next step of negotiations,” indicating a move toward face-to-face talks, Taoran said.The call last week was the second since the two nations’ presidents met in Japan in late June.Separate to the possible agricultural purchases, China announced Saturday new measures to further open up the nation’s financial sector to foreign investors. Foreign companies will be able to take a stake in or control entities including wealth management units of commercial lenders, pension fund managers and currency brokers.The changes weren’t announced as directly related to the trade talks with the U.S., but American criticism of China’s protection of various domestic markets is a core issue in the ongoing trade tensions. These changes were made by the State Council’s Financial Stability and Development Committee, which is also led by Liu.Still, there was a note of caution in the reports. Taoran said the tariffs imposed on Chinese products must be entirely removed or they would be an irritant during the talks. The removal of the tariffs is one of three core conditions that China has made for any deal.(Updates with Chinese discussions on agricultural purchases and U.S. meeting on Huwei in 4th and 5th paragraphs.)To contact Bloomberg News staff for this story: Miao Han in Beijing at firstname.lastname@example.orgTo contact the editors responsible for this story: Jeffrey Black at email@example.com, James Mayger, Paul JacksonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Investing.com - U.S. futures were higher on Monday as Wall Street looked set to recover from last week’s decline, with earnings season still in focus.
White House economic adviser Larry Kudlow will host a meeting with semiconductor and software executives on Monday to discuss the U.S. ban on sales to China's Huawei Technologies Co Ltd, two sources briefed on the meeting said on Friday. Treasury Secretary Steven Mnuchin will also attend the White House event, to which chipmakers Intel Corp and Qualcomm Inc have been invited, the people said. A White House official confirmed the meeting would take place, noting that Google and Micron would attend, but said it had been called to discuss economic matters.
(Bloomberg) -- President Donald Trump’s senior advisers have invited U.S. technology companies to the White House on Monday to discuss a resumption of sales to blacklisted Chinese telecoms giant Huawei Technologies Co., according to people familiar with the matter.White House economic adviser Larry Kudlow and Treasury Secretary Steven Mnuchin arranged the meeting with semiconductor and software companies because they wanted to talk about how to move forward. A person familiar with the meeting said the White House asked the companies “to discuss economic matters.”Among those invited are Intel Corp. and Qualcomm Inc., according to the people. The White House did not immediately respond to a request for comment.Trump and Chinese President Xi Jinping agreed to a tentative pause in their trade war and to resume negotiations after meeting at the Group-of-20 leaders’ summit in Japan on June 29. The U.S. president at the time said he would loosen restrictions on Huawei and that China had agreed to make agricultural purchases.The White House meeting is an effort to show China that Trump is serious about allowing U.S. companies to resume business with Huawei and encourage Beijing to move forward with buying more from U.S. farmers, one of the people said.Farm GoodsChina has told the Trump administration that it would only follow through on the farm purchases once the president issues export licenses for American companies to continue shipments to Huawei. The Commerce Department is leading the process, and has said it will only grant exceptions in cases where there’s no threat to national security.U.S. companies had halted shipments after the U.S. added Huawei to a trade blacklist in May, though some have resumed certain sales after reviewing the terms of the ban.Some in the U.S. administration are arguing for America to cut off Huawei from American suppliers entirely for national security reasons, and their view is supported by China hawks on Capitol Hill.White House trade adviser Peter Navarro said earlier this month that Trump is allowing the sale to Huawei of “low grade” chips that aren’t a security risk. The administration will ensure the Chinese telecom company won’t end up dominating 5G infrastructure in the U.S., Navarro told CNN.Chipmaker FortunesHuawei is one of the world’s biggest purchasers of semiconductors. Continuing access to Chinese customers is crucial to the fortunes of chipmakers such as Intel, Qualcomm and Broadcom Inc.Some U.S.-based makers of the vital electronic components have already reported earnings and given forecasts that show the negative effects of the trade dispute. They’ve argued that their financial health is crucial to U.S. leadership of a strategically important industry.Mnuchin and U.S. Trade Representative Robert Lighthizer spoke by phone with their Chinese counterparts about trade on Thursday. Mnuchin has said if the talks progress over the phone, he and Lighthizer may travel to Beijing for in-person meetings.Trump said on Friday that the call with Chinese officials a day earlier was “very good” but that they’ll “see what happens.”The Washington Post reported earlier that U.S. technology companies planned to meet Kudlow at the White House on Monday.\--With assistance from Mark Bergen.To contact the reporters on this story: Jenny Leonard in Washington at firstname.lastname@example.org;Ian King in San Francisco at email@example.com;Todd Shields in Washington at firstname.lastname@example.orgTo contact the editors responsible for this story: Margaret Collins at email@example.com, Sarah McGregor, Andrew PollackFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Advanced Micro Devices (NASDAQ:AMD) stock has been red-hot, hitting new 52-week highs earlier this month. When it comes to returns, AMD stock is crushing its peers like Nvidia (NASDAQ:NVDA) and Intel (NASDAQ:INTC).Source: Shutterstock Even better, InvestorPlace readers who followed my advice have been crushing the trade too, riding the surge from about $30 to $34 and cashing out on its run into resistance. Now we have to consider when to buy AMD stock again and decide whether it can break out over its stiff resistance. * 10 Tech Stocks That Are Still Worth Your Time (And Money) $34 has proven to be a tough nut to crack, but with the trend pointing higher, a breakout could be looming. AMD stock price fell slightly on Wednesday as it failed to exceed $74. Advanced Micro Devices stock was down over 2% in early trading on Thursday, thanks to a downgrade by Mizuho. In mid-afternoon trading today, the stock is down 0.2% to $32.90.InvestorPlace - Stock Market News, Stock Advice & Trading TipsMizuho analysts downgraded the stock to "neutral" from "buy," but raised their price target to $37 from $33. The new target is more than 10% above the current price of Advanced Micro Devices stock. Not that it matters all that much, but it's worth pointing out that the Street-high target for AMD stock is $43, about 30% above its current levels.So can Advanced Micro Devices stock reach $43? Trading AMD Stock Click to EnlargeA look at the weekly chart above shows a pretty simple layout. AMD stock is being pushed higher by uptrend support (depicted by the blue line) and is finding resistance at $34. It temporarily broke above this mark earlier this week, but it wasn't able to stay above it.That's not surprising, given how much resistance the shares face at $33-$34. In fact, I'd argue that it's healthy for AMD stock to back off its recent run a bit. The more shallow the dips become and the more times it tests $34, the more likely it is to push through that level.This is setting up as a textbook ascending triangle formation. That's where a stock makes a series of higher lows, led higher by uptrend support, while regularly failing at a static level of resistance. That's exactly what Advanced Micro Devices stock is doing now.That doesn't guarantee that AMD stock will break out or that it will push through $34. Advanced Micro Devices stock very well could lose uptrend support and tumble lower in the ensuing months. I would absolutely love another shot at AMD near the 10-week moving average, which is currently at $30.60, or near its uptrend support.That would require a fall of about 7.5% of AMD stock price, which I'm not sure we'll get. The company reports its earnings on July 30, so investors looking to ride some pre-earnings momentum or those looking to avoid a potentially large move should keep that date in mind.So what's the plan? Those who love AMD stock can gobble it up on any of these pullbacks. For more prudent investors, buying Advanced Micro Devices stock on a deeper pullback or on a breakout over $34 are possibilities. Like I said, I would love to buy AMD after it retests its support. Valuing Advanced Micro DevicesWhy is Advanced Micro Devices stock doing so much better than its peers? In 2019, AMD stock is up 78%, compared to just 28% and 5% for NVDA and INTC, respectively. Over the past 12 months, the performance gaps are even more stark.AMD stock price has surged 97% in the last year, while NVDA has fallen almost 33%. Ouch. Intel is down about 5% during that span. This difference in performance is why I recommended a basket approach more than a year ago to protect against risk. While Nvidia has underperformed Intel, imagine owning just Intel or just Nvidia and watching AMD double. That's frustrating.Luckily though, AMD's fundamentals are improving.While Nvidia makes the best-in-class chips, AMD's products are making up ground. AMD's products are being incorporated into more PCs, gaming consoles and other systems, enabling the company to generate strong top- and bottom-line growth. While Intel is struggling to generate growth and while Nvidia has negative metrics in 2018, AMD continues to pump out solid results.Analysts, on average, expect AMD's revenue to eke higher by 6.3% this year to $6.88 billion. In 2020 though, the consensus forecast calls for a 22%surge to almost $8.5 billion. The company's earnings forecast is even more impressive, with average estimates calling for 43.5% growth this year and an acceleration up to 56% growth in 2020.In 2020, the consensus estimate calls for earnings of $1.03 per share, which leaves AMD stock trading at roughly 32 times next year's consensus EPS outlook. That's a little pricey, considering how much better Nvidia's margins are than AMD's. But assuming AMD can meet the consensus growth estimates, the valuation of AMD stock isn't all that unreasonable.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 Tech Stocks That Are Still Worth Your Time (And Money) * 7 Marijuana Stocks With Critical Levels to Watch * 7 of the Best Smart-Beta ETFs to Target Right Now The post Can AMD Stock Break Out to $37?Â appeared first on InvestorPlace.
Investing.com – What started as a solid stock market rally Friday was mostly wiped out by rising tensions in the Persian Gulf.
These stocks are likely to endure sharp revenue declines in the next 12 months as demand weakens and the U.S.-China trade dispute drags on.
As one of the world's premiere chipmakers, Intel (NASDAQ:INTC) naturally attracts significant attention from market participants. However, this period draws more eyeballs than usual.Source: Shutterstock It's not only about the company's upcoming second quarter of 2019 earnings report. Rather, it's whether the semiconductor firm has finally addressed its challenges to justify taking a shot at Intel stock.Understandably, many investors are not convinced with INTC stock. In Q1, the chipmaker delivered a beat on both per-share profitability and revenue. Ordinarily, such results would spike the Intel stock price. But that's not what happened, primarily due to management disclosing a rather disappointing guidance for the rest of the year.InvestorPlace - Stock Market News, Stock Advice & Trading TipsFor one thing, Intel didn't see a "clear path to profitability" in the mobile 5G space. Essentially, this move gave rival Qualcomm (NASDAQ:QCOM) significant leverage in the next-generation telecommunications sector. Just as critically, Intel lost credibility with its core customers. For instance, Apple (NASDAQ:AAPL) desperately hoped that Intel could provide a 5G solution because it has a poor relationship with Qualcomm.Failing your enterprise clients is a surefire way to ruin your reputation. Thus, I can't blame the markets for taking down the Intel stock price a few notches. * 7 Stocks Top Investors Are Buying Now Secondly, the competition smells blood. Of course, I'm mostly referring to Advanced Micro Devices (NASDAQ:AMD). A perpetual runner-up, AMD has finally taken Intel to task for its many errors. Now, AMD has the chipset portfolio to compete with Intel on laptop PCs, data servers and enterprise-level businesses. With the rival bringing attractive pricing and top-notch products to the table, INTC stock appears incredibly troubled. Intel Stock Is an Ideal Contrarian InvestmentNaturally, folks may wonder if they should take the obvious trade: dump INTC stock and get on board AMD (or another upstart rival)? Although the narrative doesn't appear compelling for INTC, I believe that shares offer an ideal contrarian investment.Generally speaking, both the investor and the techie community are heaping the love on AMD. I get it. Most folks love a good underdog story, and AMD is it. Plus, the company has a rabid following that is difficult to explain.If you want to start a verbal tussle, say something negative about AMD. If you want threats to your safety, talk positively about Intel stock in the same breath.But this scenario is ripe for going against the grain. Despite Intel's reputation as an established stalwart, it still has a viable growth narrative. For example, Q4 2006 to Q1 2019, the correlation coefficient between corporate revenue and INTC stock is 87%. Even under a more recent comparison from Q1 2014, the correlation remains strong at 82%. Click to EnlargeWhat am I saying here? As revenue increases, so too does the Intel stock price. And it's doing so consistently, meaning that this investment is rational: the technicals largely trade on the fundamentals.However, when the price action dips significantly as we saw following the Q1 2019 earnings report, I believe contrarians have an opportunity to profit. Mainly, I think this because the bad news is baked into the Intel stock price.Sure, the company has suffered some embarrassing internal and operational gaffes. But to be perpetually bearish on INTC stock doesn't really make sense. We're talking Intel here. If anything, they have the resources to aggressively reclaim lost ground that other competitors do not have. INTC Stock Remains a PowerhouseAnother factor to consider is that AMD may have matched Intel in terms of chip performance and capabilities. However, that's just one component. As a significantly smaller outfit, AMD doesn't have the bandwidth to take down INTC comprehensively.For instance, look at the PC market. Intel's delays in distributing its 10-nanometer chips have opened the door to AMD to steal segment share. However, AMD is only able to provide the chips themselves.But the PC market is much more than just processors. As the larger company, INTC offers related components to its enterprise clients, such as Wi-Fi chips and NAND flash. It also builds platforms so client manufacturers can maximize the potential of their PC products.In other words, Intel is too deeply embedded within the broader tech market to simply unseat. Therefore, I feel confident that Intel stock can rise from its present (and likely temporary) challenges.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks Top Investors Are Buying Now * The 10 Best Cryptocurrencies to Keep on Your Radar * 7 Marijuana Penny Stocks That Could Triple (But You Won't Make Money) The post Hereas Why the Contrarian Case for Intel Stock Makes Sense appeared first on InvestorPlace.