AMD AI chip, DoorDash upgrade: Trending Tickers
Advanced Micro Devices (AMD) shares jump as the company debuts AI-focused Ryzen 8000G desktop chips at CES 2024, drawing the AI chip war into the new year as more suppliers seek to stake their claims in the space.
Jefferies upgrades delivery app DoorDash (DASH) to “Buy” from “Hold," raising the price target to $130 per share.
Yahoo Finance’s Madison Mills and Josh Lipton weigh in on these numbers and discuss consumer interests.
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Editor's note: This article was written by Eyek Ntekim.
Video Transcript
MADISON MILLS: Is AMD, as I mentioned, stock riding high today, as the semiconductor debuts its new AI-focused desktop computer chip. Now, this chip unveiled at CES, the tech show. It was just a preview designed to handle AI-based tasks without having to send data to the cloud. That's a rivaling factor for names like Apple, Arm, and Intel, and, of course, NVIDIA.
But, Josh, really interesting headline crossing for me earlier today saying, this is a new level of the chips war. You have NVIDIA coming out today saying that they are winning the race for AI PCs already. And then AMD also announcing their very own AI PCs at the exact same event.
So exactly what we were talking with Brent about in our last block, do we start to see another round of euphoria for these names as they start to announce new products related to the AI boom? And what does that do to the Magnificent Seven? Do we start to see a shakeup in what those seven names are and what they look like heading into the rest of the year?
JOSH LIPTON: Yeah. And our colleague Dan Howley has a great writeup on this news today, by the way. And as Dan notes, kind of the AI PC revolution is really seen as the next potential big growth area for the PC industry, which is why now you're seeing so many names-- AMD, Intel, Qualcomm-- all debuting their own laptop chips with AI capabilities. Now, of course, it's kind of up to developers, right, create the awesome apps that leverage those processors and wow Madison and Josh.
MADISON MILLS: Right, of course.
JOSH LIPTON: For AMD, by the way, what a run. Stocks up more than 100% in the past 12 months and the Street still loves it.
MADISON MILLS: Wow. Yeah. Great year for them.
JOSH LIPTON: So I'll move on to your shares of DoorDash, moving to the upside today. That's after a positive note. Jefferies marking it as a top pick, upgrading the name to a buy from hold. Firms say they expect the online food delivery company to double its EBITDA in the next two years.
So that was really the move here. That's the team at Jefferies. They named it a top pick. They upgrade to buy. Their target goes to 130. And they bet that EBITDA will double next two years. That's referring to earnings before interest, taxes, depreciation, and amortization. And they think it's a positive is the potential for DoorDash to improve earnings from international operations, Madison, and new lines of business, like grocery delivery.
MADISON MILLS: Yeah, it's interesting to see a lot of upside for this name. You were mentioning that all of us might have been sleeping a little bit on DoorDash up. I think you said over 100% last year, just really doing well there.
JOSH LIPTON: Well, if you look at the stocks, they made their debut in 2020. 2023 was a very good year for sure, right? I mean, huge move, 100%. , Though we got to point out the context still well, well off its peak, which is around 245 in November 2021.
MADISON MILLS: Sure. Yeah, it's interesting too when you think about DoorDash, the Biden administration is releasing a final rule. It could come as soon as this week. It would make it more difficult for companies to hire and treat workers like independent contractors rather than employees, which obviously costs companies a lot more money.
We're starting to see trickling in of this here in New York City, where workers are paid a flat rate. And the apps have transitioned away from their typical tipping prompt. So that could change the way that workers at DoorDash are paid. I'm curious whether that's going to impact this name if that goes into effect this week because it did see a 10% drop when that news was originally announced.
JOSH LIPTON: All right, we'll keep watching.
