26.30 +0.30 (1.15%)
After hours: 7:17PM EDT
|Bid||26.10 x 3000|
|Ask||26.26 x 900|
|Day's Range||23.59 - 26.07|
|52 Week Range||9.04 - 34.14|
|Beta (3Y Monthly)||4.09|
|PE Ratio (TTM)||81.25|
|Earnings Date||Apr 23, 2019 - Apr 29, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||24.52|
The stock rallied 12 percent Tuesday as Google unveiled its video-game streaming service that will use AMD processors, even though analysts said the chipmaker’s involvement was already known. AMD Chief Executive Officer Lisa Su said during a presentation at the CES trade show in January that its graphics processors would be used as part of Google’s gaming project. “We are surprised by the stock price move as we believed this was a well known win,” RBC’s Mitch Steves wrote in a research note after Google’s presentation.
Google said Tuesday that it is taking major steps to enter the videogame industry, announcing a new streaming platform that it will launch this year, a controller and an in-house videogame production unit.
The Nasdaq held up best as the key indexes pared big gains to finish mostly lower Tuesday amid renewed concerns about China-U.S. trade talks.
Cloud gaming represents the next major frontier for the video game industry. As the focus of gaming shifts from consoles to streaming from data centers, it could bring forth new leaders.
Alphabet's Google rolled out its cloud-based, video game-streaming service called Stadia. The service makes box consoles unnecessary, possibly heralding a major shift in the future of gaming.
AMD Stock Jumps ~6% on News of Intel Security FlawAMD stock jumps on news of Intel’s exposure to Spoiler Advanced Micro Devices (AMD) stock had risen ~6% as of noon today on news of a hardware security leak specific to Intel (INTC). Although
Why Jeffrey Gundlach Thinks We're Still in a Bear Market(Continued from Prior Part)Gundlach on the FedWhile it’s anybody’s guess now whether the Federal Reserve will proceed slowly in terms of interest rate hikes in 2019, the situation looked to
Building on a close, long-term collaboration between the two companies, AMD (AMD) today announced that Google selected high-performance, custom AMD Radeon datacenter GPUs for its Vulkan® and Linux®-based Google Stadia. Google announced the platform today at the Game Developers Conference (GDC) in San Francisco, Calif. AMD also is supporting Google with its software development tools and Linux-based, open-source Vulkan driver to help game developers optimize future titles to run on the new GPU-powered platform.
AMD will power Stadia's graphics rendering in the cloud, Google announced at the event. The deal marks a big win for AMD in the gaming space, where it competes with Nvidia. Advanced Micro Devices AMD spiked 11.8 percent Tuesday after Google GOOGL confirmed the firm won a deal for its game streaming platform.
Alphabet Inc.'s Google-branded streaming-videogame service will be powered by Advanced Micro Devices Inc. chips, Google executives confirmed Tuesday. AMD shares were more than 7% higher in Tuesday trading, after Morgan Stanley analysts predicted the announcement ahead of trading. AMD Chief Executive Lisa Su revealed earlier this year at CES that AMD and Google had worked together on the beta test of the service, known as Project Stream. At an event Tuesday in connection with the Game Developers Conference in San Francisco, Google executives said that the partnership will lead to thousands of exclusive custom AMD gaming chips in Alphabet data centers to run the service, which Google calls Stadia. Alphabet shares were trading about 0.6% higher Tuesday.
Shares of Advanced Micro Devices moved higher Tuesday amid concerns that Intel could be facing another major security vulnerability.
Amid modest gains for the indexes Tuesday, stocks showing big gains included chipmaker Advanced Micro Devices, Nvidia and Micron Technology.
Cloud gaming is likely to evolve as a significant initiative over time, as console and PC gaming migrate toward higher use of cloud to supplement local hardware and expand the total addressable market, Moore said in a Tuesday note.
Morgan Stanley is telling its clients that Advanced Micro Devices technology will be used in Google’s upcoming cloud-gaming offering.
Investing.com – Advanced Micro Devices rallied Tuesday, lifting chip stocks overall, as Morgan Stanley talked up the chip maker's prospects after it won part of Google's upcoming cloud-gaming offering.
Why Broadcom Stock Doesn't Have Any 'Sell' RecommendationsAnalysts’ recommendations Out of the 34 analysts covering Broadcom (AVGO), 25 analysts have rated the stock a “buy,” while nine analysts rated the stock a “hold.” Not a single
Why Broadcom Stock Is Gaining Momentum This MonthStock price movementsBroadcom (AVGO) stock rose 1.35% and closed at $293.84 on March 18. Shares of the semiconductor giant have risen 6.7% this month as of March 18. AVGO also reached a new high of
Nvidia (NASDAQ:NVDA) appears poised to recover. After a 57.5% drop from its 52-week high, the stock has moved steadily higher since December. Moreover, winning the bid to buy Mellanox (NASDAQ:MLNX) has bolstered the sentiment that Nvidia stock is the essential equity in the chip space.Source: Shutterstock However, as NVDA has recovered, the legacy of the crypto decline continues to weigh on company profits. Although Nvidia should continue to move higher, the company will have to stabilize its profit picture if it wants to remain an industry leader. Mellanox and Nvidia StockI've often referred to Nvidia as the Intel (NASDAQ:INTC) of this generation. With the rise of artificial intelligence (AI), virtual reality (VR), and data centers, it is Nvidia and not Intel that has become today's essential chipmaker.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Small-Cap Stocks That Make the Grade That will only become more true with the company's latest acquisition. The purchase of Israel-based Mellanox will enhance the company's data center and cloud capabilities. Their technology could also improve Nvidia's gaming and self-driving car capabilities.Despite the benefits of buying MLNX, Nvidia's recovery already had begun months before. NVDA has already risen by over 10% since the beginning of March and by more than 37% from its near-term low point on Dec. 24.The lower forward price-to-earnings (PE) ratio that I had pointed out late last year has also begun to rise. Today, that forward PE now stands at 23.6. Given this surge in Nvidia stock, one has to wonder if any upside remains?I believe it will, but with one condition.At first glance, Nvidia stock looks like a buy. The decline in crypto has hit NVDA and peers such as AMD (NASDAQ:AMD) hard. As a result, analysts predict an 18.8% decline in profits as the industry works off its chip glut. They also believe that that will turn into a 33% increase in profits next year. Watch for Earnings RevisionsMy one area of hesitation involves the evolving views of analysts on the severity of the chip glut. This miscalculation keeps showing up in the falling earnings estimates. Profit estimates for this fiscal year now stand at $5.39 per share. This is down from $5.75 per share just one month ago and $7.14 per share the month before that.Investors need to keep in mind that the stock has been rising as earnings keep falling. Hence, the PE ratio keeps surging due to two factors: a rising stock price and falling profits.Longer-term profit estimates also create some concern. As of now, Wall Street projects average annual earnings increase for the next five years at only 8.37%. I do not expect NVDA stock to match the 59.81% average increases of the previous five years.However, I also think investors should look at that five-year projection as a "way too early" number. Also, Nvidia stock beat earnings estimates in three of the four previous quarters. That should bode well for the equity.Moreover, I will stay with my view that Nvidia is this generation's Intel. As such, I think it can return profit growth rates to the double-digits and maintain PE ratios above 30. The Bottom Line on Nvidia StockThe immediate future of NVDA hinges on stabilizing profits. Nvidia has seen a significant recovery since the tech slump ended in late December. However, as NVDA stock keeps rising, profit estimates continue to fall.Despite the unexpectedly severe effects of the crypto decline, the recovery will spike profits in the next fiscal year. However, investors should take notice of the falling profit estimates, and the fact that sentiments lean toward single-digit profit growth over the next few years.Most experts see Nvidia as the current industry leader and expect growth to reflect that. Still, long-term profit growth numbers will also have to reflect that leadership. The future prosperity of Nvidia stock depends on it.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 * 5 of the Best Stocks to Buy Under $10 * 7 Single-Digit P/E Stocks With Massive Upside * 7 Best Quantum Computing Stocks Trading Today Compare Brokers The post Nvidia Stock Is a Keeper, It's Just Not a Buy Right Now appeared first on InvestorPlace.
Investors shouldn't be too surprised with Micron (NASDAQ:MU) earnings on Wednesday after the bell. While MU stock has moved much higher from its Christmas Eve low, the business remains tied to memory pricing which continues to suffer from last year's chip glut.Although news from the report could temporarily affect Micron shares, investors should expect little change. MU stock has gained almost 25% this year, outpacing the Nasdaq Composite index's 16.2% increase. Expect Lower Revenue and EarningsAnalyst forecast earnings for Micron's second quarter of fiscal 2019 will come in at $1.70 per share. If this number holds, it will be a substantial reduction in profits from the same quarter last year when the company reported $2.82 per share. The U.S.-China trade war and the crypto craze fizzle-out has significantly reduced demand for memory chips. Investors will see the impact of lower demand in Micron's sales. Wall Street believes the company will show revenue that's 20.2% lower than last year, at $5.87 billion versus the year-ago's $7.35 billion.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAs Micron has reported earnings beats in each of the last four quarters, I see little reason to expect a miss. However, quarterly estimates have continued to fall. Analysts had expected $2.44 per share only 90 days ago. For this reason, one has to question if beating significantly reduced expectations will help and, if so, by how much. The Worst is Probably Over for MUFor most of its history, the prospects for Micron stock rose and fell on memory chip pricing. The earnings and revenue predictions show the long-time trend will likely continue. Most MU stock investors have acclimated to lower earnings. * 15 Stocks That May Be Hurt by This Year's Big IPOs MU stock valuation already reflects this "worst is over" sentiment. Like its chip-stock peers -- including as Intel (NASDAQ:INTC), AMD (NASDAQ:AMD) and Nvidia (NASDAQ:NVDA) -- the Micron stock price cratered and then saw a dramatic recovery late last year. In MU's case, the shares have gained almost 40% since December lows.Even after this massive surge, Micron stock will appear cheap to many investors. The price-to-earnings (PE) ratio stands at a meager 3.3 times earnings. Even after figuring in the reduced profits, the forward PE rises to just under 6.5x. This comes in well below the longer-term average multiple of 13.5x.Moreover, while I usually cringe when I hear the expression "it's different this time," I think one thing is truly different. During previous chip gluts, Micron stock fell into losses, sometimes taking MU below $10 per share. While analysts forecast lower profits through at least 2021, they do expect Micron to remain profitable.Why? Today's new technologies have sent demand for memory chips exponentially higher. While I expect business cycles to remain a fact of technology life, I think the heightened demand will keep Micron profitable in leaner times ahead. It should also keep Micron stock from falling below the 52-week low of $28.39 per share.However, despite this change, MU stock remains tied to the memory prices that have always driven its highs and lows. Unfortunately for MU, pricing continues to look unfavorable for both the DRAM and NAND memory on which Micron depends. Stay Focused on Memory PricingInvestors should remain mindful of management's job to act as positively as possible. Hence, they may focus on other news. On a recent call, CEO Sanjay Mehrotra reported production cost reductions that "outpace the industry." While that can modestly help earnings, investors should avoid becoming distracted by such news. * 7 Winning High-Yield Dividend Stocks With Payouts Over 5% As a child playing football, I learned that I would need to pay attention to the player's waist instead of other movements to make a successful tackle. To tackle Micron stock, investors should likewise watch its "waist" -- that is, memory prices. News on production costs, while significant, distract from the true picture. For this reason, any possible bump that can come from Q2 earnings will probably prove temporary. While I would not expect additional bad news, I think the pain will continue for Micron. The Bottom Line on Micron StockMicron stock will continue to move based on memory pricing, not quarterly reports. MU usually beats earnings, and I do not see any indications that that trend will change in this quarter. However, this comes off of estimates that have fallen continually for months. Unfortunately, the memory pricing trends remain on track to keep Micron's profits falling through at least 2021.MU stock will see a few bright spots. Thanks to much higher demand, lows in the memory price cycle could keep Micron profitable in leaner times. Moreover, the company's reduced production costs can also offer help.Still, none of this changes MU's tendency to rise and fall with memory prices. Until market demand drives these prices for memory higher, lower production costs and rock-bottom PE ratios will do little for Micron stock.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 * 5 of the Best Stocks to Buy Under $10 * 7 Single-Digit P/E Stocks With Massive Upside * 7 Best Quantum Computing Stocks Trading Today Compare Brokers The post Micron Stock Will Likely See Little Change After Wednesday's Earnings Report appeared first on InvestorPlace.
In the latest trading session, Advanced Micro Devices (AMD) closed at $23.25, marking a -0.17% move from the previous day.