|Bid||50.25 x 900|
|Ask||50.27 x 1400|
|Day's Range||49.47 - 52.81|
|52 Week Range||19.05 - 52.81|
|Beta (5Y Monthly)||3.09|
|PE Ratio (TTM)||263.61|
|Earnings Date||Jan 27, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|Ex-Dividend Date||Apr 26, 1995|
|1y Target Est||42.78|
The stock market, it seems, has been going straight up. This chart shows that stocks are moving up in lockstep with the Federal Reserve printing money. In this situation, what is a conservative investor to do?
Intel Corp. wrapped up a rocky 2019 by reporting record sales thanks to a big jump in sales of chips for data centers and cloud computing, but that rebound may just be temporary.
Advanced Micro Devices Inc.’s sales of server chips may get heightened scrutiny following a surprise jump in data-center sales reported by larger rival Intel Corp.
Like many of its chip peers, Qualcomm (NASDAQ:QCOM) has been on fire. Shares hit new 52-week highs a few trading sessions ago and Qualcomm stock remains in demand among investors.Source: testing / Shutterstock.com It helps that the company has several long-term catalysts in play, while the overall market continues to rally, rally, rally. And in the sector, chips and semiconductors especially are in "surge mode." Whether that's Nvidia (NASDAQ:NVDA), Advanced Micro Devices (NASDAQ:AMD), Intel (NASDAQ:INTC) or others, the group simply continues to climb.Let's take a closer look at QCOM.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Valuing Qualcomm StockEarlier this month, we asked if QCOM is setting up for a banner 12 months. The short answer? Yes. The long answer underscores a bit more growth. * Invest in America's Most Trusted Brands With These 7 Stocks to Buy Qualcomm is in the beginning of its fiscal year for 2020, but has yet to report the first quarter results. For the year, analysts expect the company to earn $4.19 per share, leaving QCOM trading at 22 times earnings, but it's not as expensive on a forward basis.While current predictions call for 18.4% earnings growth this year, estimates for 2021 call for an incredible acceleration to 45.6% growth, generating earnings of $6.10 per share. That leaves Qualcomm stock trading at just 15 times its 2021 earnings.As for revenue, estimates call for 13.1% growth this year and an acceleration up to 23% growth in fiscal 2021. The numbers here are astounding really, and Qualcomm investors may be set to be major beneficiaries.As Citi analysts recently argued, the company has big exposure to the coming wave of 5G. As Apple (NASDAQ:AAPL), Samsung and other companies shift to 5G service, it translates to top- and bottom-line growth for QCOM. That's why analysts are so bullish on the coming 24 months of business. Not Without RisksQualcomm stock trades at a reasonable valuation, has big-time growth estimates over the next two years and pays a 2.5% dividend yield. It's well-positioned in the coming 5G cycle and has solid financials.But none of that means it comes without risk.First, the company may face regulatory hurdles. While the Trump administration recently came to its defense, the FTC has been hitting Qualcomm hard. While the situation could certainly improve, regulatory risks are higher for Qualcomm stock than many others.Furthermore, it was once in a legal spat with Apple, but then the tables suddenly turned. Apple paid Qualcomm billions to settle and dropped all of its lawsuits, as the company instead wanted to clear the air and do business. However, Apple has also bought Intel's modem business for $1 billion.While this is not a short-term risk, the long-term risk is that Apple begins developing its own chips and eventually cuts Qualcomm down or out. That leaves some long-term questions out in the open, but for now, Apple's ready to play ball, which will lead to big business for the company. Still, this is a situation to monitor going forward.Lastly, there's simply the risk that analysts and investors alike are too bullish on 5G and QCOM's future growth. If the company has to lower expectations or if consensus estimates prove too high, particularly the out years (2021), then Qualcomm shares could take some heat. Trading QCOM Stock Click to Enlarge Source: Chart courtesy of StockCharts.comDespite some of these risks, I'm still looking at Qualcomm as one to buy. The reason is simple. The fundamentals -- for now -- are attractive, and so is the chart. When the technicals and fundamentals align, it creates a very good situation for investors.Earlier in the month, QCOM dipped down to the 50-day moving average, but was instantly gobbled up by investors. The ensuing rally sent shares above $92.50 resistance to new 52-week highs.While bulls may buy the dip on a pullback to the 20-day moving average, I'd like a correction down to the 50-day moving average and even further down to uptrend support (blue line). For now, those deeper dips have been the optimal buy spot for active bulls.If it fails, the $80 level and the 200-day moving average are on the table, whichever comes first. Over the $96.17 high and $100 is possible for Qualcomm stock.Bret Kenwell is the manager and author of Future Blue Chips and on Twitter @BretKenwell. As of this writing, Bret Kenwell is long AAPL and NVDA. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks on the Move Thanks to the Davos World Economic Forum * Invest in America's Most Trusted Brands With These 7 Stocks to Buy * 7 Earnings Reports to Watch Next Week The post Qualcomm Stock Could Hit $100, But It Isn't Risk-Free appeared first on InvestorPlace.
Over the last four years, Advanced Micro Devices (NASDAQ:AMD) has been one of the most explosive stocks on the market. In that time, AMD stock has risen from just above $2 to $51, outperforming markets and major competitors.Source: Grzegorz Czapski / Shutterstock.com It was even the top S&P 500 stock of 2019, all as it chipped away at Intel's (NASDAQ:INTC) market dominance.Year-over-year, shares of AMD are now up 158%, as compared to Intel's gain of just 44%. Furthermore, AMD even outperformed the iShares PHLX Semiconductor ETF (NASDAQ:SOXX), which is up 64% YOY, as well.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe first time I weighed in on AMD stock, it traded at $28.90. With it now up to $51 per share, I'm still very bullish with sights set on $70 this year. All as the company continues to chip away at market share from some of the biggest names in the sector, including Intel and NVIDIA (NASDAQ:NVDA). AMD Is Crushing Its CompetitionAMD could have another explosive year, especially as it gains market share from Intel. * Invest in America's Most Trusted Brands With These 7 Stocks to Buy At the moment, Intel has yet to fully ease its processor shortages, which is causing notebook vendors to look to more of its competitions in 2020.Furthermore, AMD may also challenge NVDA dominance in 2020, as well with its "NVIDIA Killer."The company is reportedly developing an advanced high-performance graphics card to challenge NVDA in the high-end GPU market. AMD's expanding GPU portfolio serving every price point is a threat to NVIDIA's dominance.According third-quarter 2019 JPR data, "AMD's market share in discrete GPU shipments came in at 27.08%, up from 25.72% in third-quarter 2018. NVIDIA's market share declined to 72.92% from 74.28% in the same period," as highlighted by Zacks Equity Research.Additionally, another big story for AMD in 2020 are new gaming consoles.New 2020 gaming consoles from Microsoft (NASDAQ:MSFT) and Sony Corporation (NYSE:SNE) due to be launched this year use AMD chips. That alone offers AMD a powerful catalyst. Analysts Still Love the StockWhile nervous on valuation, Cowen analyst Matthew Ramsay reiterated his "outperform" rating on the stock by raising his price target from $47 to $60."With shares up 65% since our last preview, we are increasingly both confident (in fundamentals) and nervous (on valuation)," he wrote. "AMD has now showcased a track record of consistent roadmap execution and stability while offering premier technological specs and TCO [total cost of ownership] to customers seeking a viable x86 alternative to Intel."The analyst also said AMD could generate strong growth with laptops in the future. Also, he added that notebook chip sales will rise to $2.15 billion by 2021 from $1.45 billion in 2019.Additonally, Deutsche Bank analyst Ross Seymore has a "hold" rating on AMD, but raised the price target on AMD from $29 to $40. "We fully expect AMD's strong product/strategic execution to continue in 2020 and 2021," he wrote.Furthermore, Wells Fargo analyst Aaron Rakers also increased his price target to $40 to $48 on gains in the server market."We continue to see AMD's wins in [High Performance Computing] / supercomputing as increasing validation of the company's strong competitive positioning in datacenter CPUs…thus remaining supportive of our positive upside thesis," he wrote. The Bottom Line on AMD StockWith sufficient growth and ability to reduce competitors' market share, there's plenty to like about AMD stock in 2020.While valuation is concerning, I still strongly believe AMD could rally to $70 per share. We'll know more about that potential when the company posts earnings on Jan. 28 after the closing bell, but for now, AMD is a stock to buy.As of this writing, Ian Cooper did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks on the Move Thanks to the Davos World Economic Forum * Invest in America's Most Trusted Brands With These 7 Stocks to Buy * 7 Earnings Reports to Watch Next Week The post AMD Stock Could Run 40% Higher Closer to $70 in 2020 appeared first on InvestorPlace.
Robust adoption of Advanced Micro Devices (AMD) graphics cards and EPYC deal wins are expected to have driven top-line growth in fourth-quarter 2019.
(Bloomberg Opinion) -- Intel Inc. closed out 2019 learning the hard lesson that making cutting-edge semiconductors is truly difficult.Like a prizefighter who refuses to admit he just hit the mat, the world’s biggest chipmaker is coming out swinging. And it should, because how it gets through 2020 could decide the company’s fate. Once the most advanced supplier of semiconductors, Intel struggled last year to ramp up production of chips that use its latest 14-nanometer process node, “letting customers down,” as CEO Bob Swan said in October. Its full-year results released Thursday showed that revenue climbed 2% and that net income was flat — hiding the fact that Intel dodged a bullet when it wasn’t able to supply enough of its most advanced products when clients needed them most.It tried to offer some reassurance three months ago by noting that it would increase 14-nanometer capacity 25% this year while raising capital spending to nose-bleed levels. To help overcome that slip-up, executives are keen to tell investors how many customers have signed up for its latest offerings, including a chip dubbed Ice Lake and an upgrade to its Comet Lake mobile processor, which use the next-generation 10-nanometer process. In reality, Intel is badly lagging behind both contract manufacturer Taiwan Semiconductor Manufacturing Co. and South Korea’s Samsung Electronics Co. TSMC, for example, started selling its 10-nanometer chip technology in mid-2017 and last year boosted revenue from its more advanced 7-nanometer offerings by more than 200%. When Intel eventually hits 7 nanometers in 2021, it will be almost three years behind.Intel’s rebuttal is that so-called process-node technology isn’t the only thing. It’s right, and clients should look at total system performance to see how all the parts — the processor, memory and controllers — all slot together. No other company in the world can offer the breadth and depth that Intel can.But with Advanced Micro Devices Inc. back in the game after a decade in the wilderness and a raft of chip designers ready to tap TSMC’s technology advantage, Intel would be foolish to rest on the belief that it can stay ahead of the game while lagging behind on technology. It knows this and has committed to speeding up its migration from the pace of a new node every five to seven quarters to as little as four quarters. Yet investors ought to also note that the introduction of a new node compresses margins during the early stages before better yields provide economies of scale later. A quicker timetable won’t allow as much time to enjoy the upside before the next margin crunch comes.Intel’s strategy to offset this squeeze is to tap continued growth in the data-center market. Cloud providers like Amazon.com Inc., Alphabet Inc.’s Google and Alibaba Group Holding Ltd. are among customers for its 14-nanometer Cascade Lake products, while the global 5G rollout is expected to provide a couple of solid growth years. Its Data Center Group accounts for 32.6% of revenue but 46.4% of operating income, making it Intel’s most lucrative business unit by operating margin.But that business relies on Intel’s ability to churn out leading-edge chips that, even if not equivalent to what TSMC can offer clients, won’t be too far behind. A data center operator might be willing to forgive a single-generation lag, reasoning that the broader platform integration Intel offers can provide the cost-benefit metrics it needs. A two-generation delay is hard to overlook, though. Intel’s size and strength means it won’t be easily knocked out. But it needs to get through this year unscathed if it’s to remain the undisputed heavyweight champ.(Updates with details about Intel’s 10-nanometer offerings in the fourth paragraph.)To contact the author of this story: Tim Culpan at email@example.comTo contact the editor responsible for this story: Daniel Niemi at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Tim Culpan is a Bloomberg Opinion columnist covering technology. He previously covered technology for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Editor's note: InvestorPlace's Earnings Reports to Watch is updated weekly. Please check back next week for our latest earnings picks.So far, earnings season has been somewhat quiet. The earnings calendar has picked up in the last two weeks -- but hasn't yet had much impact on U.S. stocks.The market has seen bank earnings as modestly negative, with solid reports from Bank of America (NYSE:BAC) and JPMorgan Chase (NYSE:JPM) offset by weakness from the likes of Wells Fargo (NYSE:WFC) and U.S. Bancorp (NYSE:USB). Furthermore, cannabis names got some help from Aphria (NYSE:APHA) and a strong quarter from small-cap OrganiGram Holdings (NASDAQ:OGI).InvestorPlace - Stock Market News, Stock Advice & Trading TipsStill, it's not as if earnings so far have moved markets. That almost certainly will change next week, given a number of significant reports. Four of the five most valuable companies on U.S. listings will release earnings. Leaders in key sectors -- Visa (NYSE:V) and Mastercard (NYSE:MA), McDonald's (NYSE:MCD) and Starbucks (NASDAQ:SBUX) -- have earnings next week as well.And these reports will matter to the market as a whole, as recent history shows. The market's last significant selloff began on Monday, July 29 -- as most of these same companies began to report June quarter earnings. Three months later, a -- mostly -- strong batch of reports likely helped catalyze the steady uptrend that began in October. * The 7 Stocks That Cautious Investors Should Sell Now That said, earnings reports next week could again determine the near-term direction of the market as a whole. So, let's take a look at seven to keep an eye on. Earnings Reports to Watch: Advanced Micro Devices (AMD)Source: Sundry Photography / Shutterstock.com Earnings Report Date: Tuesday, January 28, after market closeIn 2019, Advanced Micro Devices (NASDAQ:AMD) was the best-performing stock in the S&P 500 in 2019, gaining 148%. Also, its 80% rise in 2018 topped the index, as well.A 13% gain year-to-date puts AMD stock once again in the top ten among S&P 500 components. To keep the momentum going, Advanced Micro Devices needs a strong report on Tuesday afternoon -- and a solid outlook for 2020.After torrid gains -- AMD stock, incredibly, has gained a little more than of 2,000% in the past five years -- Advanced Micro Devices now is big enough to move the sector as well. Earnings from Intel (NASDAQ:INTC) this week can have an impact, but that company continues to struggle with subpar execution. In contrast, AMD is firing on all cylinders, meaning its results will better reflect market dynamics -- notably in the uneven data-center vertical.Furthermore, investors should keep an eye on the reaction to earnings, as well. Both AMD and Nvidia (NASDAQ:NVDA) have rallied sharply from December 2018 lows. Both stocks have been assigned steep earnings multiples in a sector that historically traded at a discount to the market as a whole.So, AMD earnings could be a sign of the health of the semiconductor industry. However, the reaction to earnings will be a sign of sentiment toward the sector -- and what kind of valuations investors are willing to pay. Apple (AAPL)Source: pio3 / Shutterstock.com Earnings Report Date: Tuesday, January 28, after market closeIt's fair to wonder what Apple (NASDAQ:AAPL) has to do on Tuesday afternoon to drive further upside in its stock. Expectations seemingly couldn't be any higher.After all, Apple stock has had a literally unprecedented run, which has continued into 2020. Shares have gained 8.7% thus far in 2020, adding over $100 billion in market capitalization in the process.Since June 3, AAPL stock has nearly doubled. Its market value has risen by over $650 billion. There are just three -- three! -- companies on U.S. exchanges worth more. That said, the gains leave seemingly little room for error with fiscal first-quarter results.The good news is that Apple is well-positioned for a beat on Tuesday afternoon. Analysts are expecting earnings per share to climb nearly 9% year-over-year, but share repurchases alone should drive most of that growth. The consensus revenue estimate implies a roughly 5% top-line increase against a soft comparison. Remember that lowered guidance for last year's fiscal Q1 sent AAPL stock plunging.Assuming Apple's headline numbers do beat estimates, there are two more hurdles for the stock. First, it will matter not just if Apple outperforms, but how. Strong iPhone sales would help -- but the focus here increasingly is turning to the higher-margin, higher-growth services business. * The 3 Best Bank Stocks to Buy After Earnings Second, investors need to keep buying AAPL stock the way they have for the past twelve-plus months. Given relatively low Street expectations, a "sell the news" reaction might be the biggest risk to Apple stock in regular trading on Wednesday. General Electric (GE)Source: testing / Shutterstock.com Earnings Report Date: Wednesday, January 29, before market openTo be fair, Q4 earnings from General Electric (NYSE:GE) probably won't move the market. GE isn't the company it once was, due both to asset divestitures over the past decade and struggles in some of the businesses it has kept.Still, GE is one of the most widely-held large-cap stocks. And there may not be another company of its size for which earnings next week are so important. As I detailed this week, Wednesday morning's release is absolutely critical for GE stock.But, it's not fourth-quarter numbers that are likely to move the stock, or change sentiment toward the company's turnaround. It's 2020 guidance that will matter.Ahead of the release, Wall Street has a wide range of 2020 EPS forecasts. The most bearish analyst projects 49 cents in EPS; the most bullish 77 cents. GE stock looks notably different at the respective ends of those ranges. Above-consensus guidance makes General Electric look like a growing company with a reasonable, if not cheap, valuation; Whereas, a disappointing outlook suggests a business still in decline.CEO Larry Culp has done a nice job in recent quarters re-inspiring confidence in his company. On Wednesday, however, GE needs to deliver not just hopeful commentary, but a strong forecast for 2020. Facebook (FB)Source: rvlsoft / Shutterstock.com Earnings Report Date: Wednesday, January 29, after market closeOn its second quarter conference call back in July 2018, Facebook (NASDAQ:FB) guided for sharply higher spending going forward. FB stock plunged as a result, posting the largest one-day loss of market cap in the history of the stock market.On Jan. 9, Facebook stock finally clawed back those losses and closed above its 2018 high. And so the mission for Facebook management on Wednesday afternoon is clear: avoid a repeat of that disastrous quarter 18 months ago.After all, Facebook is almost guaranteed to beat Street estimates with its numbers. In the last five years, the company has missed consensus just three times, all in terms of revenue. Momentum has built in recent quarters, which seems to set Facebook up to top expectations for 23% revenue growth and just a 6% increase in EPS.However, beating Q4 estimates won't be enough to boost Facebook stock if the outlook for 2020 is disappointing. Facebook historically hasn't given specific forward-looking guidance, but it's likely to give at least some color on its spending plans for 2020.Those plans will incorporate some kind of increase as Facebook continues to enhance user experience. But the question is how much. Analysts expect a moderate rise: 2020 consensus estimates imply significant operating margin expansion, with revenue up 22% while EPS grows 43%.Hopes for that margin expansion need to be supported by commentary on Wednesday's conference call, not dashed. If Facebook once again points to plans for higher-than-expected spending, a smaller version of the July 2018 selloff could result. * 3 Cheap Dividend Stocks That Belong in Your Portfolio Now A nearly 25% rally in Facebook stock from June lows has come with increasing confidence that Facebook can restore some of the profit margin lost due to higher spending in 2019. On Wednesday, management needs to support that confidence looking to 2020. Tesla (TSLA)Source: Christopher Lyzcen / Shutterstock.com Earnings Report Date: Wednesday, January 29, after market closeTesla (NASDAQ:TSLA) stock closed at $254.68 the day of the company's Q3 earnings report on Oct. 23. After the bell, Tesla reported a surprise profit, and TSLA gained 17% the next day.That was just the start. The Q3 report catalyzed a stunning rally: Tesla stock has more than doubled. That rally puts significant pressure on Wednesday afternoon's fourth-quarter release. Wall Street is expecting a solid profitable quarter, with the consensus EPS estimate at $1.72.But the range is wide, with analysts forecasting EPS ranging from 80 cents to $2.57. The same is true of price targets: among 29 analysts, fair value ranges from just $61.57 to $810.51. The average of $361.57 is sharply below Tesla's Wednesday close of $569.56.And so Tesla needs to deliver solid margins in Q4. A big quarter likely will lead to a wave of Wall Street upgrades, drive further short covering and keep the parabolic rally going. Anything less, and investors may wonder why an automotive manufacturer with still-minimal profitability is priced at nearly 100x the 2020 consensus EPS estimate.The options market are pricing in a nearly 14% move in TSLA stock by next Friday. There's some logic to that, as this is a big quarter for Tesla. The company can convince more of its skeptics -- or embolden them. Microsoft (MSFT)Source: Peteri / Shutterstock.com Earnings Report Date: Wednesday, January 29, after market closeFiscal second-quarter earnings from Microsoft (NASDAQ:MSFT) will matter to the market simply because of the company's sheer size. Microsoft's $1.26 trillion market cap is second only to that of Apple.That said, it's difficult to see much in the way of significant news coming out of Microsoft earnings. The company's results have handily beat estimates in each of the last three quarters, which suggests another quarter of impressive performance. The strength and wide adoption of core products like Office and Windows makes it easier for Wall Street to model expectations. The one wild card, though, is the company's Azure platform, whose growth has helped drive much of the recent optimism toward MSFT stock.Assuming, as is likely, that Microsoft again tops estimates, the question here as well is how investors react. At 27x forward earnings, MSFT stock might be the best example of the high valuations investors are assigning quality companies. And one of the core questions in this market is just how high those valuations can go. * 10 Recession-Resistant Services Stocks to Buy If investors keep bidding MSFT higher, that suggests room for further multiple expansion elsewhere in the market as earnings season goes on. On the other hand, if valuation concerns arise for a company as successful as Microsoft, they're destined to become a problem for the rest of the market. Amazon (AMZN)Source: Jonathan Weiss / Shutterstock.com Earnings Report Date: Thursday, January 30, after market closeAmazon.com (NASDAQ:AMZN) is almost certain to report lower earnings next week. The consensus estimate suggests a nearly one-third reduction in profits on a YOY basis; even the highest of 43 estimates projects a nearly 8% decline.The culprit is the company's launch of one-day shipping. On the third quarter conference call, chief financial officer Brian Olsavsky projected "a nearly $1.5 billion" impact on earnings in the fourth quarter from increased shipping costs. After-tax, that's a roughly $2.50 hit to EPS.As a result, Thursday's report looks potentially dangerous for AMZN stock, which has rallied into the release. Shares have struggled after each of the last two reports, though they admittedly recovered post-Q3 losses rather quickly. A compressed holiday shopping season appears to have led to soft sales at Target (NYSE:TGT), and may depress Amazon's U.S. revenue, as well. Furthermore, Microsoft's Azure is taking aim at Amazon Web Services.I've long been a bull on AMZN, but I've argued the short-term outlook is much more concerning. Amazon's earnings at the least will be a real test of investor patience. The market long has rewarded Amazon for its long-term focus over short-term earnings. Particularly after the recent bounce, it's fair to wonder whether it will do so again next week.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 7 Stocks That Cautious Investors Should Sell Now * 7 Healthcare Stocks With 100% Street Support * 3 Chinese Stocks to Buy, Sell, or Play from Either Side The post 7 Earnings Reports to Watch Next Week appeared first on InvestorPlace.
AMD's fourth-quarter results are likely to reflect deal wins on strength in EPYC server processors and uptick in holiday sales amid increasing expenditure on product development.
Nvidia on Thursday got a boost from two analysts who see growth in the graphics-chip maker's future.
Advanced Micro Devices (AMD) closed at $51.43 in the latest trading session, marking a +0.74% move from the prior day.
(Bloomberg) -- Apple Inc. has asked chipmaking partner Taiwan Semiconductor Manufacturing Co. to increase its output of A-series processors this quarter in order to satisfy higher-than-anticipated iPhone demand, people familiar with the company’s plans said.The iPhone 11 and 11 Pro models were well received on their debut in the fall and their sales in China have been particularly strong, outselling 2018’s releases in a market that has otherwise been shrinking. Even without fifth-generation wireless networking, iPhone demand has been outperforming the market and Apple’s expectations, and the company asked assembly partners to increase their production of the latest generation.The most affordable iPhone 11 model, equipped with an LCD screen, was a particular driver for the increased demand, one person said.New Low-Cost IPhone Said to Enter Mass Production in FebruaryAlong with the popularity of existing models, Apple’s business with TSMC is also set for a boost from an imminent iPhone SE successor, a low-cost model that will begin mass production in February ahead of an official unveiling as soon as March, Bloomberg News reported. It will be built around the same processor as the iPhone 11 generation.TSMC spokeswoman Nina Kao said the company doesn’t comment on its business with any specific customer. An Apple spokeswoman declined to comment.The Taiwanese chipmaker recently reported earnings above most analysts’ expectations and it forecast another good quarter ahead. Though it faces potential headwinds from the threat of tightening U.S. sanctions on key customer Huawei Technologies Co., analysts believe additional demand from Apple and Advanced Micro Devices Inc. will replace any potential Huawei drop-off.\--With assistance from Mark Gurman.To contact the reporter on this story: Debby Wu in Taipei at email@example.comTo contact the editors responsible for this story: Edwin Chan at firstname.lastname@example.org, Vlad SavovFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Cowen’s Matthew Ramsay reaffirmed his Outperform rating for AMD shares. He also raised his price target for the stock to $60 from $47.
Advanced Micro Devices, Inc. (NASDAQ: AMD) shares are likely to see further momentum this year, given the ongoing strong product momentum. Speculations were rife in the middle of 2019 that AMD was prepping to launch an assault on rival NVIDIA Corporation (NASDAQ: NVDA) by targeting the high-end graphics card segment, which was the stronghold of the latter. AMD confirmed at the Consumers Electronics Show as well as in an interview titled "Bring Up," where CEO Lisa Su recapped the company's CES presentations a high-end Navi graphics card will be released later this year.
Cowen & Co. analyst Matthew Ramsay boosted his price target on Advanced Micro Devices Inc. shares to $60 from $47 on Tuesday, with his new target ranking as the second highest among analysts tracked by FactSet. Ramsay senses a change in tone during conversations on AMD's future: "Our queries continue to shift to 'when,' not 'if' in terms of share gains and [earnings per share/free-cash flow] growth, as investors largely no longer question whether or not AMD will gain material x86 share or deliver upon its roadmaps, but instead try to better understand the cadence, magnitude, and competitive roadmap positioning as Intel experiences 14-nanometer supply constraints and roadmap changes." He pointed to AMD's "track record of consistent roadmap execution and stability" now that its Zen-2 7-nanometer product has been launched for desktops, notebooks, and servers. AMD shares are off 0.3% in premarket trading Tuesday, but they've gained 59% over the past three months as the S&P 500 has risen 11%.
Advanced Micro Devices shares are rising Tuesday. Analysts lifted their price targets for the semiconductor maker. It reports its quarterly earnings after the bell.
Intel shares rose Tuesday after analysts at Jefferies upgraded the stock to hold from underperform on optimism that recent changes to the chip company's management team will provide a boost in 2020 and 2021. The semiconductor maker has experienced a lull in recent years thanks to increased competition from Advanced Micro Devices , but that lull could be over now that the company has made these management changes. "There is a short window of opportunity for Intel to halt its stock's underperformance, and it seems to us that the company is positioning to do so," Jefferies wrote in the note.
DnB nearly tripled its investment in Intel stock in the fourth quarter. The bank also sold nearly half of its stake in AMD stock.
Nvidia shares have soared roughly 60% in the last year as part of a broader semiconductor market climb that has come despite an overall sales and earnings downturn. So is now the time to buy NVDA stock?