33.80 -0.05 (-0.15%)
After hours: 5:23PM EDT
|Bid||33.80 x 3000|
|Ask||33.86 x 1300|
|Day's Range||33.80 - 34.86|
|52 Week Range||15.72 - 34.86|
|Beta (3Y Monthly)||3.37|
|PE Ratio (TTM)||135.94|
|Earnings Date||Jul 23, 2019 - Jul 29, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||31.21|
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.
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.
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 firstname.lastname@example.org. 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 email@example.com.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.
The Zacks Analyst Blog Highlights: Bank of America, Eli Lilly, Boston Scientific, Schwab and Advanced Micro Devices
The market had been much higher at one point in the day on Wednesday, buoyed by commentary from Federal Reserve Chairman Jerome Powell who all but said a rate cut was coming, and soon. But, even with the intraday pullback, the S&P 500 ended the day up 0.45%, hitting a record high in the process.Source: Allan Ajifo via Wikimedia (Modified)Tesla (NASDAQ:TSLA) gets a little bit of extra credit for keeping the market in the black. Shares of the electric carmaker were up nearly 4% on the heels of news it was planning to ramp-up production at its Fremont, California plant. Memory chip maker Micron Technology (NASDAQ:MU) was up 4% as well after the glut-beleaguered company announced it raised a few billion by issuing some well-received notes.At the other end of the spectrum, Levi Strauss (NYSE:LEVI) tumbled 12% after the jeans company said the second half of the year wasn't looking quite as promising as first believed.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Best ETFs for 2019: The Race for 1 Intensifies None of those picks are great prospects headed into Thursday's session though. Rather, it's the stock charts of Davita (NYSE:DVA), Honeywell International (NYSE:HON) and Advanced Micro Devices (NASDAQ:AMD) that look like your best bets, even if not all for bullish reasons. Advanced Micro Devices (AMD)Advanced Micro Devices shares, in simplest terms, are at an inflection point. Although the rally since late last year has been persistent and rewarding, for the second time in a month AMD is knocking on the doors of record highs. If the bulls fail once again, this third try may not set up a fourth attempt anytime soon. Rather, this could serve as the pivot into a more prolonged downtrend, and the backdrop is anything but encouraging. Click to Enlarge * The ceiling in question is right around $34, plotted in white on both stock charts. This is the third time since mid-2018 it has been tested. * While the advance appears to have momentum, there's a stark lack of volume behind the gain thus far. * A breakout move past the $34 area could be catalytic, but if volume doesn't materialize in a big way, it could also be nothing but a setup for an even bigger wave of profit-taking. Davita (DVA)In a perfect world a stock's trading action would always make sense, and moves -- higher or lower -- wouldn't need prodding. We don't live or trade in a perfect world though.With that as the backdrop (and perhaps with a bit of irony thrown in), this week's drubbing of Davita shares may be the very thing they needed to restart a bigger-picture rally effort that ultimately failed to follow through last week. It was news that prompted the shakeup, which isn't ideal. It's still the hand traders were dealt though. * 10 Stocks to Sell for an Economic Slowdown Click to Enlarge * As of last Friday, DVA had just pushed above its 200-day moving average line, plotted in white on both stock charts. On Monday, that move was completely up-ended, by headlines. * Tuesday's miserable opening wasn't so miserable after all. With some help from the purple 50-day moving average and even more held with a semi-established floor around $50.76, Davita logged a convincing intraday reversal pattern. * Wednesday's follow-through was key, and on above-average volume to boot. Honeywell International (HON)Finally, it's far from being in deep trouble yet, but Honeywell International shares are slowly moving in that direction. It's the pace and nature of the slowdown, in fact, that's raising so many red flags.Either, with a runup that has far outpaced the broad market's gain since the very end of last year, the sheer risk of the rollover turning into something more merits a closer look. Click to Enlarge * It's loosely evident on both stock charts, put the daily chart's purple 50-day moving average line's flattening action best shows the gradual slowdown underway. * The clincher here would be a MACD crossunder on the weekly chart. Such signals have accurately marked sizable pullbacks a couple of times since early 2018. * It may have more to do with the season than the stock, but there's been minimal volume behind the worst of the bearish days that have started this slow, arching rollover.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley. 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 3 Big Stock Charts for Thursday: Davita, Honeywell and Advanced Micro Devices appeared first on InvestorPlace.
In 2018, Advanced Micro Devices (NASDAQ:AMD) was the S&P 500's top performing stock, rising nearly 80% as the small but rapidly growing chipmaker continued to gain share on its far larger (and far more valuable) peers, Intel (NASDAQ:INTC) and Nvidia (NASDAQ:NVDA). AMD has continued to gain share in 2019, and AMD stock has continued to rally.Source: Shutterstock Year-to-date, AMD is the S&P 500's second best performing stock, up another near 80% through early July.In other words, AMD stock has been a really good long term investment. In 2018, it was the top stock in the S&P 500. In 2019, it's been the second best stock in the index. That sort of continued out-performance is rare.InvestorPlace - Stock Market News, Stock Advice & Trading TipsWill it continue? How much longer can AMD stock stay red hot for? * 10 Best ETFs for 2019: The Race for 1 Intensifies A Closer Look at AMDThe reality is that, while an 80% gain over six months is not repeatable, AMD stock will stay on a healthy longer term uptrend so long as three things remain true:* The market share expansion narrative remains alive and well.* Macroeconomic and market conditions remain healthy.* The valuation on AMD stock remains reasonable.Right now, AMD checks off all three of those boxes. As such, the stock projects to stay on an uptrend for the foreseeable future. AMD Has Formed a Nice UptrendSince early 2018, AMD stock has formed a healthy and steady uptrend as the company's core growth narrative has gained credibility and traction.That core growth narrative is pretty easy to understand. AMD is the David of both the computer processing unit (CPU) and graphics processing unit (GPU) worlds. This David is fighting two Goliaths - Intel in the CPU world, and Nvidia in the GPU world.For a long time, Intel and Nvidia were kicking AMD's butt. But, AMD has punched back over the past several quarters with faster innovation, a promising product line-up, and aggressive expansion into new markets.The result? AMD has won share from both Intel and Nvidia, and this share expansion has powered robust revenue growth, margin expansion, and profit growth. Click to EnlargeAs this market share expansion narrative has gained momentum over the past several quarters, AMD stock has formed a healthy and steady uptrend. See the attached chart.The stock has been very volatile. It has both spiked way above its multi-quarter trend-line, as well as dropped way below it. But, every time, it returns to that trend-line, which has a healthy upward slope.That's a promising sign for investors. It means that while there's a lot of noise in AMD stock, the core growth narrative remains healthy and the core uptrend in AMD stock remains equally healthy. The Uptrend Should Persist, with Some FrictionThis uptrend in AMD stock should persist for the foreseeable future.There are three things at play here. First, you have the aforementioned core market share expansion narrative. AMD needs that narrative to stay alive and well in order for the stock to preserve its uptrend. Fortunately, recent developments imply this is the case.The company reported strong first-quarter numbers (on the heels of bad first quarter numbers from Intel), announced an impressive 7nm product road map which analysts say lays the groundwork for further market-share expansion, won a graphics licensing deal with Samsung, and has scored multiple cloud gaming deals. Thus, AMD should continue to win market share over the next several quarters.Second, the market and economic backdrop need to remain healthy in order for AMD stock to stay on an uptrend. The outlook on that front is similarly favorable. Global economic conditions are improving, thanks to continued labor market strength, cooling U.S.-China trade tensions, and persistently low rates.At the same time, low rates also create favorable market conditions, since they help inflate equity valuations. As such, the market and economic backdrops project to remain healthy.Third, the valuation on AMD stock can't get too far ahead of itself. Right now, it isn't. My 2019 target on this stock has long been $30. But, in a bull case scenario, a $35 price target by the end of 2019 is supported, assuming the company can do somewhere around $2.75 in EPS by fiscal 2025 (which is within reason and entirely doable).Broadly, then, AMD checks off all the boxes it needs to in order for the stock to stay on its healthy uptrend. The implication? AMD stock should stay in rally mode, with some friction as valuation becomes more worrisome the higher the stock goes. Bottom Line on AMD StockAMD stock has been one of the market's hottest stocks for the past 18 months. It won't stay this hot forever.Valuation will ultimately limit AMD stock from rallying another 80% over the next six months. But, the stock should remain on an uptrend so long as the company continues to expand market share, the economic and market backdrops remain healthy, and the valuation remains reasonable.Right now, all three of those things are true. Thus, for the foreseeable future, AMD stock should stay on an uptrend.As of this writing, Luke Lango was long INTC and NVDA. 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 AMD Stock May Begin to Cool, but It Will Keep on Climbing appeared first on InvestorPlace.
Price action and evolving tech needs have long left investors wondering what to do about Intel (NASDAQ:INTC). Since early June, Intel stock has moved higher by about 10%.Source: Shutterstock However, INTC stock has remained range-bound for almost two years. Changing technology has arguably made Nvidia (NASDAQ:NVDA) a more critical chip company than Intel. Also, AMD (NASDAQ:AMD), who consistently lagged Intel during the PC era, has taken a technical lead in many respects.Still, despite this stagnation, its long-term outlook may improve dramatically. While I expect little near-term growth in Intel stock, a technological shift could send INTC much higher over the next few years.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Best ETFs for 2019: The Race for 1 Intensifies A Closer Look at Intel StockThe price-to-earnings (PE) ratio serves as an important indicator in the semi industry. In its heyday during the PC era, Intel commanded PE ratios in the 30s and 40s. Instead, competitors such as AMD and Nvidia now command comparable multiples.Today, with Intel falling behind peers, it currently trades at a multiple of about 10.8. Investors should note that both Nvidia and AMD fell to similar PE ratios a few years ago when their prospects dimmed.From this industry pattern of multiple expansion and contraction, we can surmise that Intel stock is a buy, eventually. This despite a pattern of range-bound trading going back to 2017. The Intel stock price now stands at just under $48 per share.Does that mean that the comeback in Intel stock will begin soon? Not so fast. Those who buy now merely because of the low PE ratio will likely see their patience tested. As our own Laura Hoy stated, Intel likely faces a "bumpy road" ahead.Right now, recent headlines bode poorly for Intel. Read about Intel's technology, and you will hear about slowing data center sales and AMD's faster processors.To my colleague Will Ashworth's point, you may also hear about Microsoft (NASDAQ:MSFT) possibly sourcing processors from AMD or Qualcomm (NASDAQ:QCOM) instead of Intel for the Microsoft Surface. What INTC needsLike its peers in recent years, Intel stock needs a catalyst to inspire buying. For Nvidia, it meant applying its graphics processing units (GPU) to artificial intelligence (AI), virtual reality (VR), and self-driving cars. Likewise, AMD built its comeback on becoming the other GPU company and taking a technical lead on Intel.Seeing comparable action in Intel stock may amount to waiting on two technologies to see widespread adoption, 5G and self-driving cars. As I stated in my previous article, Project Athena will bring the next-generation, 5G compatible products to the market.Moreover, Mobileye has begun testing self-driving taxis. It also signed a contract to bring its technology to 8 million vehicles earlier in the year.Once these innovations hit the market, I think that can drive the long-awaited move into Intel stock. If investors begin to believe in Intel again, I think the PE ratio (now at about 10.8) will reach levels comparable to the ones currently seen in both AMD and Nvidia.NVDA now trades at just under 30 times earnings. Hence, simply taking INTC stock to a comparable valuation would roughly triple the value of INTC. The Bottom Line on Intel stockIntel stock may struggle for some time to come, but a change in technology could send it much higher long term. INTC stock has risen over the last few weeks. However, slowing data center sales and losing its technical lead over AMD could hurt INTC in the coming months.Intel has developed products for both 5G and autonomous vehicles. Hence, after a technological shift occurs, the outlook may become much brighter. Investors will need to wait for both to see more widespread adoption to see if this theory plays out.Still, a return to prominence for Intel would unlock tremendous value. Intel stock currently supports a market cap of about $211 billion. A PE ratio of 30 takes that to about $600 billion.A multiple of 50 would bring the market cap to the $1 trillion mark. Although I do not predict such a valuation, this also shows that Intel is closer than many think to again becoming a top company in tech. With a little patience, investors can benefit tremendously from such a move.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 * 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 Intel Stock Needs This One Thing to Return to Prominence appeared first on InvestorPlace.
In recent months, the “Tech Cold War” has reared its head, but Apple doesn’t seem ready to throw in the towel in the Chinese market.