AMD - Advanced Micro Devices, Inc.
| Previous Close | 23.92 |
| Open | 24.05 |
| Bid | 24.48 x 1000 |
| Ask | 24.50 x 1200 |
| Day's Range | 23.88 - 24.36 |
| 52 Week Range | 9.04 - 34.14 |
| Volume | 52,650,728 |
| Avg. Volume | 95,722,111 |
| Market Cap | 24.489B |
| Beta (3Y Monthly) | 4.21 |
| PE Ratio (TTM) | 76.12 |
| EPS (TTM) | 0.32 |
| Earnings Date | Apr 23, 2019 - Apr 29, 2019 |
| Forward Dividend & Yield | N/A (N/A) |
| Ex-Dividend Date | 1995-04-27 |
| 1y Target Est | 24.52 |
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- InvestorPlace•yesterday
The 3D XPoint Could Be a True Game Changer for MU Stock
Like most other semiconductor firms, Micron Technology (NASDAQ:MU) has incurred a rather interesting 14-month period. In the first half of 2018, MU stock got off to a blistering start, gaining over 26%. But the house came tumbling down shortly thereafter, leaving many shareholders running for cover.Source: Mike Deal via FlickrThis year, the overall sentiment appears much more promising. Clawing back some of last year's losses, Micron stock has skyrocketed 36% since the January opener. The move also keeps pace with competitors like Advanced Micro Devices (NASDAQ:AMD) and Nvidia (NASDAQ:NVDA). But despite the early enthusiasm, MU shares have found themselves in an unexpectedly awkward situation.For starters, the MU stock price finds itself sandwiched between the 50-day moving average below, and the 200 DMA above. This setup not only indicates the ferocious volatility that shares incurred last year, but also broader hesitancy towards the company.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSecond, Micron stock has gone virtually nowhere since January 2018's opening volley. Since the tech firm obviously doesn't pay out a dividend, investors have no reason to hold their position unnecessarily. Therefore, the present pensiveness is a real problem. * 9 High-Growth Stocks to Buy Now for Monster Returns So what's the next move? For a tech firm, nothing moves sentiment quite like a groundbreaking product. With Micron's 3D XPoint technology, the embattled organization appears to have a lifeline.You don't have to be a techie to appreciate the implications behind 3D XPoint. However, the directional impact towards the MU stock price remains surprisingly questionable. Why 3D XPoint Is a Gamechanger for MU StockDeveloped through a joint venture between Micron and Intel (NASDAQ:INTC), 3D XPoint represents the next phase of non-volatile, solid-state storage. According to Micron's website, this new tech features "1,000 times lower latency and exponentially greater endurance than NAND."That's great news for tech nerds, apparently. But let's break down what this means for the investor. Primarily, 3D XPoint sits in a pricing sweet-spot between the two established solid-state storage technologies, DRAM and NAND.Back in spring of 2017, DRAM cost a little more than $5 per gigabyte (GB). NAND sat on the cheapest end at 25 cents per GB. However, during development, experts forecasted 3D XPoint to split the gap at $2.40 per GB.True, these are old statistics, and memory chips feature incredible volatility. Historically, this was one of the key reasons why the MU stock price was equally volatile. However, the data provides a comparative analysis which remains relevant today.Another tailwind that drives Micron stock is the emerging industry for data centers. With both big and small businesses increasingly shifting towards the cloud, data centers have received massive revenue influxes. However, that demand also stresses technical components like NAND chips.But as I briefly mentioned, 3D XPoint is significantly more robust than NAND. The former's impressive tech credentials translates to million-plus write cycles. As ComputerWorld.com's Lucas Mearian noted, 3D XPoint will essentially last forever. Pricing Also Hurts Micron StockGiven the new chip's profound cost-savings against DRAM and performance superiority over NAND, buying MU stock appears a no-brainer. With just a simple explanation, you can convince even the most tech-ignorant investor to jump onboard.Or maybe not. Ironically, the pricing tailwinds that benefit Micron stock also represent a significant headwind. A nagging issue is that 3D XPoint won't disrupt NAND chips into irrelevancy or obsolescence. As Mearian stated, NAND still enjoys a long development road map. According to some industry experts, NAND can maintain relevancy into at least 2025.That's a problem because a new tech that partially markets a pricing advantage should make the replaced tech economically inefficient. However, 3D XPoint won't displace NAND broadly. Instead, you'll likely see the biggest impact in the data centers.But more critically, 3D XPoint doesn't have as many advantages over DRAM. In terms of latency (data-transfer delays), 3D XPoint is ten-times higher than DRAM. So the key advantage here is cost.Here's where the problem comes in: DRAM enjoyed a massive price increase in 2018, but that trend could crumble later this year. One doom-and-gloom forecast targets a drop from the current $7.07 per GB to a shocking $2.57 per GB.If that happens, DRAM would only offer a marginal cost benefit to 3D XPoint. Further, unusual pricing dynamics could make DRAM cheaper than the upstart chip. At that hypothetical juncture, Micron may as well change the project name to 3D XPointless. Should You Buy MU stock?Despite the uncertainties surrounding 3D XPoint, I'm net bullish on Micron stock.Of course, I'm concerned about DRAM's negative (relative to the MU investor) pricing forecast. The negative prognostications could come true, or it might not.Even if it does, let's look at the longer term. Intel and Micro developed 3D XPoint with pricing advantages in mind. Therefore, barring unusual situations, computer chips don't discount themselves in a vacuum. Instead, a secular fall in DRAM pricing would likely also see discounts for 3D XPoint, thereby maintaining the pricing advantage.Plus, the MU stock price itself represents a pricing opportunity. I recommended buying shares last December, and that idea played out very nicely. But relative to its recent highs, MU is still a bargain.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 * 6 Hot Stocks For Goldman Sachs' New Investing Strategy * 10 Smart Money Stocks to Buy Now * The 10 Best Cheap Stocks to Buy Right Now Compare Brokers The post The 3D XPoint Could Be a True Game Changer for MU Stock appeared first on InvestorPlace.
- Market Realist•yesterday
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5 Large-Cap Stocks Prepping for a Rebound
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9 High-Growth Stocks to Buy Now for Monster Returns
Due to the immense volatility of last year, and the uncertainty cloud this year, defensive investments have dominated public discourse. In these trying times, you want to grab as many assurances as possible.Nevertheless, within this context, high-growth stocks provide lucrative opportunities.For one thing, growth stocks took a beating during the final quarter of 2018. Because they typically don't pay out dividends, panicked investors saw little reason to hold them. As well, the ferocious magnitude of losses made the selloff a self-fulfilling prophesy. This dynamic especially affected up-and-coming stocks which lacked longer-term credibility.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut the irony here is that the same volatility makes high-growth stocks attractive at these levels. Several top names, as well as the upstarts, now trade at steep discounts. That's bad for their management teams, but good for you. Now, those smoking-hot names you've been eyeballing before can be acquired much more easily. * 7 Healthy Dividend Stocks to Buy for Extra Stability Here are my top nine picks for "monster" growth stocks that will kickstart strong gains in 2019: High-Growth Stocks to Buy: Amazon (AMZN)Source: Shutterstock E-commerce giant Amazon (NASDAQ:AMZN) had a monstrous final third in 2018, and I don't mean that in a good way. AMZN stock peaked on the first trading day of September. Since then, shares plummeted slightly over 34% before clawing back some of those losses.In January of this year, AMZN got off to a brilliant start. Returning market sentiment towards high-growth stocks also boosted the tech firm's profile. But curiously, shares started to stagnate around mid-January. Amazon suffered some embarrassing PR, as well as the controversial cancellation of Amazon HQ2 in New York City.However, this is a great time to pounce on AMZN. The marriage between commerce and digitalization is only burning brighter. Naturally, this benefits Amazon and its dominant position in this sector. Facebook (FB)Source: Shutterstock When you're talking about opportunities among the high-growth stocks of social media, most folks will likely point to Snap (NYSE:SNAP). Unsurprisingly, a positive earnings report finally lifted shares out of an ignominious pit.Still, I like sustainability in my growth stocks. Unfortunately, core indicators surrounding the social-media upstart suggest further pain down the road. However, I can't say the same thing about stalwart Facebook (NASDAQ:FB). Sure, they've suffered more controversies than the Donald Trump administration -- okay, maybe not that many -- hurting their credibility. * 10 Smart Money Stocks to Buy Now But despite all the negativities, we have facts. FB remains the world's biggest social-media network. A key benefit here is that they offer unprecedented advertisement revenue channels. Up-and-coming stocks like SNAP can barely keep up. Therefore, I prefer discount-diving in FB stock over an unproven entity. Intel (INTC)Source: Shutterstock Discussions involving high-growth stocks in the semiconductor space end up focusing on the usual suspects: Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD). Of course, both companies feature heavily in video gaming, as well as the industries of tomorrow.But what about Intel (NASDAQ:INTC)? Yes, Intel has been around forever, instantly negating it as one of the sexy up-and-coming stocks. Of course, we can't forget its production disappointments revolving around the company's next-generation computer chips.That said, INTC has surprisingly offered stability relative to most other growth stocks. During last year's October rout, Intel initially absorbed some damage, but it quickly gained back those losses. Also, its shares technically look convincing while Nvidia looks somewhat risky.Another selling point comes from its 2.4% dividend yield. It's not much, but it's a heckuva lot better than most high-growth stocks. Dave & Buster's (PLAY)Source: Shutterstock A cursory look at -- or even a deeper analysis of -- entertainment trends may lead you to one conclusion: millennials just don't go out anymore. And with wildly successful high-growth stocks like Netflix (NASDAQ:NFLX), why should they? They can be entertained from the comfort of their own homes.But Dave & Buster's (NASDAQ:PLAY) -- which decidedly operates a brick-and-mortar business -- bucks this trend. Typically, arcades attract the young market (we're talking high school age). However, PLAY allows adults to gleefully let out their inner child, and without judgment. The company's strong growth trajectory confirms this thesis. * 7 Financial Stocks With Accelerating Growth Dave & Buster's also benefits from similar cost structures associated with AMC Entertainment (NYSE:AMC). While cord-cutting is a powerful phenomenon, AMC offers an indispensable social experience, and at a relatively cheap price. This dynamic should make PLAY one of the surprising hits among growth stocks. Square (SQ)Source: Via SquareIf you're looking for high-growth stocks with monstrous upside, it's hard to argue against Square (NYSE:SQ). For starters, SQ has already obliterated the markets -- even last year when so many growth names, particularly up-and-coming stocks, hit a wall, Square delivered respectable returns.As usual, SQ is off to a strong start this year, and I expect further bullishness to unfold. A key factor driving the tech firm is relevancy. With commerce generally moving to the online arena, small businesses in the brick-and-mortar space must innovate. With Square's unique payment app and device, these entrepreneurs can disrupt much bigger competition.The best part? The fundamentals prove this point. According to recent data, Square continues to enjoy robust gross payment volume increases. That tells me that end-users gravitate towards Square's easy and intuitive platform, boding well for SQ stock. GrubHub (GRUB)Source: Shutterstock Among up-and-coming stocks within the past few years, GrubHub (NYSE:GRUB) has the opportunity to render a monstrous paradigm shift. For those who aren't familiar, GrubHub is a food-delivery service that allows diners to enjoy take-out from local restaurants. Particularly, this service benefits those eateries that wouldn't normally offer take-out.To the older demographic, GRUB sounds like sheer laziness. Similarly, those who are fiscally conservative (ie. cheap) don't want to deal with GrubHub. I fall into the latter category. However, my recent foray with Uber rides have made me realize something: online-based transportation services represent the future. * Should You Buy, Sell, Or Hold These 7 Medical Cannabis Stocks? Eventually, GrubHub will probably get rid of their human drivers given tech's trajectory. But the concept of leveraging tech for consumer conveniences? Not only will that not go away, but the dynamic is only getting stronger. Therefore, keep GRUB high on your list of high-growth stocks to buy! Intuitive Surgical (ISRG)Source: Jon Fingas via Flickr (Modified)Usually, growth stocks centered on commerce and the consumer gain and retain the most attention. After all, when we're not working or sleeping, we're often buying something. But as Intuitive Surgical (NASDAQ:ISRG) demonstrates, not all opportunities within this sector involve consumerism.If you're like most people, you don't enjoy the idea of surgery, or hospitals in general. But what if a method existed that minimally disrupted your life and your body? Through ISRG's groundbreaking da Vinci surgical system, that fantasy has turned into reality.Even better, health agencies are increasingly supportive of the concept. Just recently, the Food and Drug Administration approved the company's Ion system, designed for minimally invasive peripherial-lung biopsies. This represents another critical breakthrough for ISRG, since lung cancer is one of the most devastating cancers. Workday (WDAY)Source: Workday Invariably, if technology changes the way we shop, it will also change the way we work. That's the overriding thesis driving Workday (NASDAQ:WDAY). An on-demand financial and human-resource management provider, WDAY offers a slight wrinkle within this rather staid industry.Through its cloud-based enterprise resource planning (ERP) platform, businesses can now access world-class HR programs through a subscription service. Logically, such an option provides small businesses a critical advantage, as HR and other administrative expenses eat up considerable resources. * 7 Healthy Dividend Stocks to Buy for Extra Stability But WDAY doesn't just benefit up-and-coming stocks. Instead, several of its top clients hail from blue-chip segments, such as Amazon, Bank of America (NYSE:BAC), and Hewlett Packard Enterprise (NYSE:HPE). First, everyone wants to save money. Second, WDAY provides an unbiased assessment of what (or who) works, and more importantly, what (or who) doesn't. MongoDB (MDB)Source: Shutterstock When people think about databases, they usually conjure up the column-and-row structure. Popularized by Microsoft's (NASDAQ:MSFT) Excel program, this setup has its place. Invariably, though, you provide the intelligence. But what if a database could do some of the strenuous lifting for you?That's the key question that underlines MongoDB (NASDAQ:MDB) and its innovative approach to databasing. In fact, it's downright disruptive. Straying far away from the traditional approach, MDB offers a flexible document data model. This enables MDB operators to adapt to new, incoming data. Plus, the MongoDB platform provides seamless changes throughout an organizational structure.Even more impressive for developers, the platform is completely open source. Therefore, you're not tied into a rigid format such as a traditional database. This is especially useful for tech firms like Coinbase that seek an edge in a competitive field.It's not the most well-known name among high-growth stocks, but MDB has monstrous potential.As of this writing, Josh Enomoto was long AMC. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Smart Money Stocks to Buy Now * The 10 Best Cheap Stocks to Buy Right Now * 7 Restaurant Stocks to Watch in 2019 Compare Brokers The post 9 High-Growth Stocks to Buy Now for Monster Returns appeared first on InvestorPlace.
- InvestorPlace•3 days ago
Here’s Why You Should Sell the Rally in AMD Stock
Advanced Micro Devices (NASDAQ:AMD) stock has started to turn the corner recently. After hitting support at the $17 level multiple times, AMD stock has now surged back to the $23 level. That's still short of last year's highs at $34, but it's a big step in the right direction. Unfortunately, the rebound in AMD seems to be based more in sentiment than in fundamental reality. Source: Shutterstock For one thing, AMD's most recent earnings hardly changed the narrative. This is a wait and see story out to late 2019 if not 2020. AMD also moved higher following Nvidia's (NASDAQ:NVDA) recent upbeat guidance. In the case of Nvidia, however, expectations were so low that it didn't take much to please investors. * 7 Healthy Dividend Stocks to Buy for Extra Stability It's clear that the crypto profits that AMD and Nvidia feasted off in recent quarters aren't coming back anytime soon. And between a downturn in the semiconductor cycle, trade war concerns, and really lousy demand out of Asia, signs point to a challenging 2019 for AMD.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Make No Mistake: Earnings Were BadRemember that AMD stock initially sold off following its most recent earnings report. Though shares quickly reversed and traded higher, the actual results weren't so good. Cryptocurrency continues to be a major drag on results which offsets strength elsewhere. Even with AMD showing CPU market share gains for the fifth consecutive quarter, it just hasn't been enough to move the needle. For 2019, AMD's management still sees only single digit revenue growth.Keep in mind that AMD's growth is significantly decelerating. For full-year 2018, AMD grew its revenues by 23%. Despite that, it was only modestly profitable for the year.It seems unlikely that this year's softer incremental revenue growth will deliver the bang necessary to make AMD strongly profitable and give it the financial firepower necessary to keep up with Nvidia, Intel (NASDAQ:INTC), and other rivals over the long haul.Notably, the analyst at JP Morgan gave a rather modest boost to the outlook for AMD stock following this earnings report. JP Morgan's Harlan Sur raised his price target from just $18 to $20, leaving a neutral rating on the stock. While acknowledging that the company is on track to meet its 2020 objectives, Sur fears competition from Intel among other things will keep AMD from being a buy. AMD: A Look at the Balance SheetBulls and bears have been arguing over the state of AMD's finances in recent weeks. On the bear side, AMD skeptics point to a great deal of dilution of AMD stock. On the plus side, that cash is shoring up the company's debt position. Let's take a closer look.It's important to understand that there are two separate financial instruments at work here. For one, AMD issued a ton of warrants back in 2016 at a low price when the company was struggling.A major holder of these warrants, WCH, is exercising them. It holds warrants that will become AMD common stock at $5.98 per share. Remarkably, it has 75 million of these. These convert to 75 million shares of stock at less than $6 each. That obviously represents major dilution for AMD, but it does give the company almost $450 million in cash as these warrants become effective.This will help AMD's current financial situation to a significant degree. As of its most recent filing, AMD had around $1.2 billion in cash and cash equivalents against $2 billion in short-term obligations. That represents a fair amount of leverage.There's also the matter of the convertible debt. The company issued more than $800 million in convertible debt that has periodic windows where that debt can be transformed into stock. Given the run in AMD price, it seems likely that this debt will be converted.The conversion ratio would reconfigure the debt into just over 100 million shares of AMD stock. That would be worth well over $2 billion at today's prices, and the debt only yields 2.1% as it is. So it's logical to convert the debt now. However, analysts have already calculated financials as though this debt had been converted, so there is not nearly the dilutive effect going forward that you might have expected.All in all, these financial events limit AMD stock's upside to some degree but substantially improve the company's balance sheet and cash availability. AMD Stock Verdict: Expectations Are Too HighAnalysts have issued overly rosy guidance for AMD for a little while now. By this point, AMD was supposed to generating strong recurring profits.Instead, the company is trading at a 74 P/E ratio with people pushing the data for big profits out to next year. If you believe the analysts, AMD stock is now trading at 25x forward earnings. But they've been wrong before. Even if they are correct, 25x earnings is hardly that cheap for a semiconductor company.AMD has done a lot of things right in recent times, and management deserves the credit it is getting. But the stock got ahead of itself. There was little reason for shares to trade north of $30 when earnings are, even if everything goes perfectly, set to come in under a dollar a share over the next year.Much of AMD's recent recovery was due to short-term profit sources, such as the crpytocurrency boom. If you've looked at Bitcoin prices lately, it should be clear that this revenue isn't coming back in 2019, if ever.The analyst firms, JP Morgan excluded, still have relatively favorable outlooks on AMD for 2019. If the company can deliver, the stock may go up a little. But if it misses expectations, you should expect the stock to get hammered. The risk/reward is tilted heavily to the downside, particularly as shares have rallied so sharply in recent weeks.At the time of this writing, Ian Bezek owned INTC stock. You can reach him on Twitter at @irbezek. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Smart Money Stocks to Buy Now * The 10 Best Cheap Stocks to Buy Right Now * 7 Restaurant Stocks to Watch in 2019 Compare Brokers The post Here's Why You Should Sell the Rally in AMD Stock appeared first on InvestorPlace.
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