27.21 -0.09 (-0.33%)
Pre-Market: 5:27AM EDT
|Bid||27.08 x 1000|
|Ask||27.20 x 1400|
|Day's Range||26.92 - 28.52|
|52 Week Range||9.04 - 34.14|
|Beta (3Y Monthly)||4.06|
|PE Ratio (TTM)||94.46|
|Earnings Date||Oct 24, 2018|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||25.67|
Advanced Micro (AMD) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
In the previous part of this series, we saw that Intel’s (INTC) delay in the launch of the 10 nm (nanometer) node could put it behind rival Advanced Micro Devices (AMD) and Taiwan Semiconductor Manufacturing Co. (or TSMC) (TSM) in terms of technology. For years, Intel has been the leader in the manufacturing technology node. It was this technological advantage that helped Intel gain market share and command a high price for its products.
The first half was strong for Intel’s (INTC) DCG (Data Center Group). Demand outlook seems strong in the second half. Gartner estimates the worldwide public cloud computing market to grow 21.4% YoY (year-over-year) to $186.4 billion in 2018. The growth in cloud computing would drive demand for Intel’s high-performance Xeon Scalable server CPUs (central processing units).
In the previous part of this series, we saw that Intel (INTC) launched it ninth-generation Core processors even though it’s facing yield issues on its 10 nm (nanometer) node. Intel has already delayed the launch of its 10 nm products from the 2016 holiday season to the 2019 holiday season, allowing rivals Taiwan Semiconductor Manufacturing (or TSMC) (TSM) and Samsung (SSNLF) to go ahead of it in terms of manufacturing technology. With the 7 nm node, AMD has tweaked its strategy and is bringing server CPUs first, which could be followed by client CPUs. On the other hand, Intel could launch its client CPUs first and then server CPUs, although the gap between the two launches would be short due to delays in the 10 nm node.
Intel (INTC) has been transitioning to the data-centric business, and DCG (Data Center Group) is its most profitable business segment, growing double-digit YoY (year-over-year). Intel’s DCG is seeing strong demand from the Cloud and Communications Service Providers as they prepare for AI and 5G. It’s also seeing growth in the Enterprise segment as companies increasingly adopt analytics, which is increasing their data-intensive workloads.
Underscoring that idea was the 2.8% advance International Business Machines (NYSE:IBM) mustered before reporting its quarterly numbers after the closing bell rang … a bet that turned out to be a bad one. Stock charts of Hartford Financial Services Group (NYSE:HIG), Pinnacle West Capital (NYSE:PNW) and Comerica (NYSE:CMA) are worth a closer look as Wednesday’s action begins — mostly because their developing trends are bigger than just the past few days. Hartford Financial Services was a name put under the trading microscope back on Sept. 6, when the stock was toying with a break under a key support level.
In the first part of this series, we saw that Intel (INTC) has been transforming its business from a PC-centric company to a data-centric company. In order to make money from the declining PC market, it has refined its PC strategy to focus on three high-end PC segments: mobile, gaming, and commercial. All three segments have diverse power and performance requirements, so Intel designed a PC portfolio that caters to these segments.
Although Intel (INTC) has been shifting to its data-centric business, PC is its biggest segment. PC contributes over 50.0% toward revenues and over 60.0% toward operating income. The CCG (Client Computing Group) offers PC CPUs (central processing units) and smartphone modems and competes with Advanced Micro Devices’ (AMD) Ryzen CPUs and Qualcomm’s (QCOM) modems.
The major indexes extended gains Tuesday afternoon in a broad advance, and the Nasdaq composite and S&P 500 today have a reason to feel better about their rebounds.
Intel (INTC) was surrounded by technical, competitive, and macro headwinds in the first nine months of 2018. Those headwinds started to clear one by one in October.
It’s important not to overreact to the recent declines in Nvidia (NASDAQ:NVDA) stock. Long-term, I still believe Nvidia stock is a buy. Short-term, it has been a different story. Nvidia stock has fallen 18% in just the last eight trading sessions before today.
Intel (INTC), the PC and server CPU (central processing unit) leader, started 2018 with the disclosure of chip design flaws Spectre and Meltdown. While Intel was working out a solution for these flaws, it announced a delay in the launch of its 10 nm (nanometer) products to the 2019 holiday season. Intel announced the abrupt resignation of its CEO Brian Krzanich and acknowledged that it would face a shortage of CPUs in the second half of 2018.
Intel (INTC) completed 50 years in the business in 2018. Five years ago, with changing trends, the company started a multiyear transformation from a PC-centric company to a data-centric company. The transformation increased Intel’s data-centric revenue contribution from 33% to 50%.
The technology sector's bounce Tuesday was practically unanimous, as the SPDR Techology Select Sector ETF rose 1.6% with all 65 equity components gaining ground. The top gainer was Adobe Inc.'s stock , which rose 7.1% after the software company provided an upbeat outlook. The other top gainers are shares of Arista Networks Inc. , up 2.8%, and Autodesk Inc. , up 2.7%. Among the most active components, Advanced Micro Devices Inc.'s stock tacked on 0.4%, Micron Technology Inc. shares rose 1.2% and Microsoft Corp. shares advanced 2.0%. The technology ETF was still down 2.2% over the past three months, while the Nasdaq Composite has lost 3.6% and the S&P 500 has slipped 0.7%.
In this daily bar chart of AMD, below, we can see a short-term decline this month. Prices are testing the rising 50-day moving average line, which should crest soon. The daily On-Balance-Volume (OBV) line shows a peak in early September and a decline, so far, to the middle of October.
Through the first three quarters of 2018, Intel stock was up just 2.5%. What do we make of that relative strength and should investors consider Intel stock a buy as a result? Intel has always attracted many investors due to its low valuation and its dividend.
Micron Technology (NASDAQ:MU), which provides semiconductor systems, has had a difficult time since June. While high volatility in the broader technology market is likely to continue for several more weeks, there are two mildly bearish plays in MU stock that I want to share with you, as each play could lead to impressive profits.
NEW YORK, NY / ACCESSWIRE / October 15, 2018 / U.S. markets bounced on Friday, erasing some of the losses for the week, as the third quarter earnings season kicked off. The Dow Jones Industrial Average ...
Intel (INTC) has been transitioning its business from a PC-centric company to a data-centric company. The contribution of the data-centric business toward the company’s revenues rose from 33.0% five years ago to its current level of 50.0%. Each of Intel’s data-centric businesses has been growing at a double-digit rate on a YoY (year-over-year) basis.
The market fought back on Friday, with the S&P 500 gaining 1.42% on the last trading day of the week. Advanced Micro Devices (NASDAQ:AMD) and Microsoft (NASDAQ:MSFT) led the charge, up 4.1% and 3.5%, respectively. Traders were flocking back into their favorite tech names, many of which were hit exceedingly hard on Wednesday and Thursday. But that wasn’t anywhere near enough strength to undo the damage done earlier in the week. For the five-day stretch, the S&P 500 lost more than 4% of its value.
Tech earnings season just got a lot more interesting. When major technology companies report their quarterly earnings over the coming month, they’ll do so in the aftermath of the Nasdaq’s worst week since March of this year. Amid market uncertainty, investors will be searching for indications of strong fundamental trends.
Amid threats of tariffs and trade wars, many investors have rotated into more small cap stocks and midcaps this year.