CANADA - 2025/01/24: In this photo illustration, the Advanced Micro Devices, Inc. (AMD) logo is seen ... [+] displayed on a smartphone screen. (Photo Illustration by Thomas Fuller/SOPA Images/LightRocket via Getty Images)SOPA Images/LightRocket via Getty ImagesAMD stock has declined by almost 5% over the last five trading days. The stock also remains down by about 19% since the start of 2024. In contrast, the S&P 500 has gained about 27% since early 2024. A couple of factors have driven the recent sell-off. ...

Core Viewpoint - Advanced Micro Devices (AMD) is positioned as a key competitor to Nvidia in the high-end GPU market but has not yet fully leveraged the AI boom despite having competitive products [1] Group 1: Stock Performance and Predictions - AMD stock has shown resilience compared to Nvidia following the release of the Chinese AI model DeepSeek, maintaining its status as a value play in a competitive industry [2] - A technical analyst predicts that AMD stock will begin a gradual climb to $148, representing a 23.88% upside from its current price of $119.47 [6] - The stock has been trading within a descending channel pattern since reaching an all-time high of $211 in March 2024, with previous bullish legs resulting in price surges of 32.85% and 35.40% [3][4] Group 2: Technical Analysis - The current bearish leg of the descending channel pattern is believed to have ended, with the 1-day relative strength index (RSI) indicating bullish divergences that typically signal a reversal [5] - The average price target set by Wall Street analysts for AMD stock is $173, with some analysts, like Matt Bryson of Wedbush, setting targets at or above $150 despite recent adjustments [7] Group 3: Market Outlook - There is a high probability that AMD shares may pull back from the predicted $148 level, but Wall Street remains confident in the stock's ability to sustain higher price levels in the long run [8] - AMD is scheduled to release its next earnings report on February 4, which could impact market sentiment [8]

A recent sell-off in artificial intelligence (AI) stocks should serve as an important reminder to investors not to ignore valuations. There is a lot of demand for AI-related products and services, and concerns about whether the tech sector is once again overspending on growth are valid. But one way you can limit your risk in AI is by investing in stocks which have modest valuations.Three stocks which possess attractive growth prospects in AI and which look to be among the cheapest buys right now include Del ...

As founder of Coatue Management, Philippe Laffont oversees $26.9 billion invested in more than 80 stocks, and though he buys players across many sectors, one in particular stands out. The billionaire is known for his investments in innovative companies, and he's generally found them in the area of technology. The sector consistently represented more than 40% of his holdings over the past five quarters, and four of his five most heavily weighted stocks -- led by Meta Platforms and Amazon -- are giants in the ...

Core Viewpoint - Advanced Micro Devices (AMD) is expected to report strong revenue growth in its fourth-quarter 2024 results, driven by significant increases in its Data Center and Client segments, despite anticipated declines in the Embedded and Gaming segments [2][4][9]. Group 1: Financial Performance Expectations - AMD anticipates fourth-quarter 2024 revenues of $7.5 billion, with a year-over-year growth of 22% and a sequential rise of 10% [2]. - The Zacks Consensus Estimate for fourth-quarter revenues is $7.52 billion, indicating a year-over-year growth of 21.84% [3]. - The consensus estimate for fourth-quarter earnings is $1.07 per share, reflecting a year-over-year growth of 38.96% [3]. Group 2: Segment Performance - The Data Center segment is projected to generate revenues of $4.1 billion, representing a year-over-year increase of 79.71% [4]. - The Client segment is expected to see revenues of $1.97 billion, indicating a year-over-year growth of 35.04% [8]. - The Embedded segment's revenues are estimated at $922 million, showing a decline of 12.77% year-over-year, while Gaming revenues are expected to be $509 million, reflecting a significant decline of 62.79% [9]. Group 3: Market Position and Competitive Landscape - AMD's shares have decreased by 31.2% over the past 12 months, underperforming the Zacks Computer and Technology sector, which appreciated by 25.2% [10]. - The company's current price/sales ratio is 5.81X, higher than the industry average of 3.18X, indicating a stretched valuation [13]. - AMD's stock is trading below its 50-day and 200-day moving averages, suggesting a bearish trend [16]. Group 4: Strategic Partnerships and Acquisitions - AMD has established strong partnerships with major companies like Microsoft, Oracle, and Dell, enhancing its market presence [18]. - The acquisition of ZT Systems is expected to accelerate the deployment of data center accelerators critical for AI innovation [20]. - AMD's collaboration with IBM to offer AMD Instinct MI300X accelerators on IBM Cloud aims to advance HPC and AI capabilities [19].

Core Insights - Advanced Micro Devices (AMD) is expected to report quarterly earnings of $1.07 per share, reflecting a year-over-year increase of 39% [1] - Anticipated revenues for the quarter are projected to be $7.52 billion, which represents a 21.8% increase compared to the same quarter last year [1] Earnings Projections - The consensus EPS estimate has been revised downward by 0.8% in the past 30 days, indicating a reassessment by covering analysts [2] - Changes in earnings projections are crucial for predicting investor reactions and have shown a strong correlation with short-term stock price movements [3] Revenue Estimates - Analysts estimate 'Net revenue- Data Center' to reach $4.10 billion, indicating a year-over-year increase of 79.7% [5] - 'Net revenue- Embedded' is projected at $922.06 million, suggesting a decline of 12.8% year over year [5] - 'Net revenue- Gaming' is expected to be $509.49 million, reflecting a significant decrease of 62.8% year over year [5] - 'Net revenue- Client' is forecasted to reach $1.97 billion, indicating a year-over-year increase of 35.1% [6] Market Performance - AMD shares have shown a return of -2.9% over the past month, contrasting with the Zacks S&P 500 composite's increase of 1.2% [6] - AMD holds a Zacks Rank 4 (Sell), suggesting it may underperform the overall market in the near future [6]

Core Viewpoint - Corporate America is entering a new quarterly earnings season, with a particular focus on companies leading in artificial intelligence (AI), especially Advanced Micro Devices (AMD) and its competition with Nvidia [1] Company Overview - AMD is set to release its fourth-quarter report for 2024 on February 4, 2024, and has emerged as a strong competitor to Nvidia in the data center GPU market, which is crucial for AI development [2] - AMD launched the MI300X data center GPU at the end of 2023 to capture Nvidia's 98% market share, securing major clients like Microsoft, Meta Platforms, and Oracle [2] - The company has also introduced the MI325X to compete with Nvidia's H200 and plans to ship the MI350 series later this year, which will offer 35 times more performance than the previous generation [3] Market Position and Revenue - AMD is the leading supplier of AI chips for personal computers, a segment where Nvidia does not compete, indicating a shift of AI workloads from data centers to personal devices for improved efficiency [4] - The adoption of new AI models from developers like DeepSeek could further accelerate this transition, with AMD expecting over 100 computing platforms featuring its Ryzen AI 300 Series chips to launch this year [5] - AMD's data center business generated a record $3.5 billion in revenue during Q3 2024, marking a 122% increase year-over-year, driven by strong GPU sales [6] Financial Projections - AMD's CEO projected GPU revenue of $2 billion for 2024, which was later revised to $5 billion due to exceeding sales expectations, making this a key figure for investors to monitor [7] - Investors will also be looking for guidance on GPU sales for 2025, with expectations for significant growth over 2024 [8] - The gaming segment has faced challenges, with revenue dropping 58% in the first three quarters of 2024 due to decreased demand for consoles, which has negatively impacted overall results [9] Stock Valuation - AMD's stock is currently trading at a P/E ratio of 39.1, which is a 17% discount compared to Nvidia's P/E ratio of 47.1, suggesting that AMD is undervalued relative to its competitor [11] - Forward-looking estimates indicate AMD's EPS could increase by 54% to $5.13 in 2025, resulting in a forward P/E ratio of 22.8, implying significant upside potential for the stock [12] Investment Outlook - Given AMD's substantial opportunities in both data centers and personal computing, the stock is considered a strong addition to investment portfolios with a long-term horizon of five years or more [13]

Core Viewpoint - The current market is characterized as an asset bubble, and TQI offers tools and strategies to help investors navigate this environment profitably [1]. Group 1: Company Overview - TQI was established in July 2022 with the mission to simplify, enhance enjoyment, and increase profitability in investing for all investors [2]. - The company publishes premium equity research reports on Seeking Alpha, providing a research library and performance tracker [2]. - TQI offers features such as highly-concentrated, risk-optimized model portfolios tailored to different stages of the investor lifecycle [2]. Group 2: Services and Offerings - In addition to Seeking Alpha, TQI provides best-in-class investing insights through TQI Tidbits, a free newsletter, as well as on Twitter and LinkedIn [2]. - The company emphasizes access to proprietary software tools and group chats as part of its offerings to enhance the investing experience [2].

Core Viewpoint - Nvidia has seen significant growth due to increased investment in AI chips, but concerns about its high valuation and potential risks from China are causing investors to reconsider its stock value [1]. Group 1: Nvidia's Performance and Challenges - Nvidia's revenue and share price surged in 2023, with trailing-12-month revenue reaching $113 billion, making it challenging to maintain high growth rates [3]. - Analysts project a 52% revenue growth for Nvidia in calendar 2025, which is about half the growth rate of the previous year, with supply chain constraints posing a risk to meeting these estimates [4]. - Demand for Nvidia's H200 is strong, but the company relies on data center operators to continue increasing their spending, raising questions about the sustainability of this trend [5]. Group 2: Competitive Landscape and Risks - China's DeepSeek claims its AI model can compete with leading American models at a fraction of the cost, potentially prompting big tech companies to reduce spending on AI infrastructure, which could negatively impact Nvidia [6]. - The data center market has experienced growth cycles that have previously hurt Nvidia, and there is a risk of over-investment leading to excess capacity and a downturn in spending [7]. - Nvidia's stock is considered expensive with a forward P/E ratio of 42, and the company must navigate several risks to justify this valuation [8]. Group 3: AMD as a Competitive Alternative - AMD has shown substantial stock growth, returning nearly 5,000% over the last decade, and is currently trading at a lower P/E ratio than Nvidia while offering similar growth potential [9]. - AMD's revenue from data center GPUs is expected to be only 20% of its total revenue this year, providing a better risk-to-reward ratio compared to Nvidia [9]. - AMD's focus on designing GPUs for AI inferencing may give it an edge, with its MI325X chip reportedly delivering up to 20% higher performance for AI inference than Nvidia's H200 [10][11]. Group 4: Future Outlook - AMD is positioned for significant growth in data center GPUs, trading at 24 times this year's earnings estimate, which is nearly half of Nvidia's valuation, while analysts expect AMD's earnings to grow over 44% annually [12]. - If data center investment in AI hardware continues, AMD could outperform Nvidia, and its lower P/E multiple may cushion the impact of any slowdown in GPU spending [13].

Investment Strategy - The portfolio focuses on high-risk, high-reward opportunities, primarily in the technology sector [1] - The strategy emphasizes asymmetric long-term upside potential in selected companies [1] - Top holdings include Bitcoin, Tesla, Google, Amazon, and Nvidia [1] Portfolio Composition - Bitcoin is identified as an early investment in the portfolio [1] - Major equity holdings are concentrated in leading technology companies: Tesla, Google, Amazon, and Nvidia [1] Analyst Position - The analyst maintains beneficial long positions in AMD and NVDA through various financial instruments [2] - The positions include stock ownership, options, or other derivatives [2]