Nasdaq Stocks

3D Systems DDD is a leading provider of 3D printing solutions, offering a range of products and services for the manufacturing, healthcare, aerospace, automotive, and consumer goods industries. The company specializes in additive

3M stock is a Dividend King no more, as the company slashed its payout following the Solventum spinoff. Is the stock still a buy for investors seeking passive income?

On paper, semiconductor stalwart Advanced Micro Devices ( NASDAQ:AMD ) produced a reasonably solid report for the first quarter. However, the company is competing against technology juggernaut Nvidia ( NASDAQ:NVDA ) in multiple advanced arenas, most notably artificial intelligence. Therefore, investors needed more than just a solid print. Unfortunately, the generative AI space may be overhyped, warranting a cautious approach. Therefore, I am bearish on AMD stock. AMD stock has fallen by 11.9% in the past three months. Hitting Certain Right Notes Wasn’t Enough for AMD Stock When looking at Advanced Micro’s Q1 earnings results without broader context, it appears that the company did enough to assuage its shareholders. Analysts were looking for earnings per share of 62 cents, which the company met. On the top line, experts projected sales of $5.47 billion. Instead, the tech firm posted $5.48 billion. Further, as TipRanks reporter Vince Condarcuri mentioned, the revenue tally represented a 2.2% increase from the year-ago quarter. Notably, AI-related endeavors undergirded the top-line expansion. “Data Center revenue jumped by 80% year-over-year to $2.3 billion. The main driver of this segment was AMD’s MI300 AI accelerator. The MI300 is a competitor to Nvidia’s H100 chip and costs about 33% less. It also tends to be better suited for memory-intensive tasks, such as simulations,” wrote Condarcuri. Moreover, Advanced Micro CEO Dr. Lisa Su mentioned that widespread AI deployment was driving demand. In response, the company ramped up its Data Center business to “enable AI capabilities across our product portfolio.” Looking ahead to Q2, management believes that revenue will land between $5.4 billion and $6 billion. Analysts previously modeled for sales to reach $5.69 billion. From a bird’s-eye view, the tech giant appeared to be saying the right things. However, investors disagreed, with AMD stock slipping sharply following the earnings report. Harsh Realities Cloud the Q1 Report Although Advanced Micro delivered many encouraging statistics, Q1 wasn’t a perfect print. In particular, the company suffered from lower revenue in its Gaming and Embedded business unit. Per AMD’s earnings conference call, it disclosed that total revenue declined 11% sequentially because the aforementioned unit offset its data-center-focused GPU sales. That’s a problem for two reasons. First, Nvidia represents the clear leader in GPU sales associated with the AI ecosystem. Yes, it’s true that many experts have projected generative AI to command a valuation of $1.3 trillion by 2032. However, the tech arena is not a democracy. With Nvidia’s technical edge, it’s possible that it can take the lion’s share of the AI hardware market, leaving everybody else fighting for scraps. Since those are expensive scraps, investors may not be in the mood for “good enough.” Conspicuously, while AMD stock is down almost 9% in the trailing month, NVDA is up nearly 5%. In other words, Advanced Micro needs to take the fight to Nvidia. Delivering an 11% sequential quarterly revenue decline wasn’t what the market wanted. Second and more importantly, AI could be overhyped. While the evolution of AI and machine learning has offered groundbreaking solutions, they’re still works in progress. Last year, Harvard Business Review warned that what it termed the AI hype cycle has been distracting companies. Though AI is undoubtedly a powerful tool, it’s not a miracle worker. A huge vulnerability regarding AI is that it’s not always accurate. As academic researchers have pointed out, large language models are prone to “hallucinate” – in other words, make stuff up. In certain contexts, the consequences for such false information are rather minimal; perhaps a school teacher gives a failing grade to a student. However, there’s much talk about computers taking over human jobs. Whether we’re talking about legal guidance or accounting or some other service, accuracy is critical. If it turns out that generative AI is incapable of an acceptable level of accuracy, then the whole innovation is rather pointless. Rethinking AMD’s Valuation If AI’s capabilities are found wanting, then Advanced Micro will need to rely on its other business units to pick up the slack. However, it’s these units that are underperforming, which may be why investors are spooked about AMD stock. The underlying company has too many eggs in one basket, and that basket may undergo a valuation adjustment. For Fiscal 2024, analysts, on average, anticipate revenue of $23.88 billion. However, it’s possible that if AI doesn’t live up to the hype, Advanced Micro could hit the lower end of the spectrum, which sits at $22.71 billion. Right now, AMD stock trades at 10.4x trailing-year revenue. That’s well above the semiconductor sector’s average multiple of 4.05x. Now, let’s just assume the AI industry falters. AMD could find itself trading at an even higher multiple of 10.7x or worse. Is Advanced Micro Devices Stock a Buy, According to Analysts? Turning to Wall Street, AMD stock has a Strong Buy consensus rating based on 25 Buys, seven Holds, and zero Sell ratings. The average AMD stock price target is $192.83, implying 23.8% upside potential. The Takeaway: AMD Stock Was Good but Not Good Enough At first glance, Advanced Micro appeared to deliver satisfactory results for its Q1 earnings report. However, investors were looking for more amid Nvidia’s dominance in the AI space. In addition, AI runs the risk of being overhyped, requiring AMD to shore up its other business units, something it failed to do in the last quarter. With the possibility that the company could suffer a negative valuation adjustment, AMD stock presents risks for investors. Disclosure

Corning (NYSE: GLW) recently reported its Q1 results, with revenues and earnings exceeding our estimates. The company reported core revenue of 3.3 billion, down 3% y-o-y but above our $3.1 billion estimate. Its adjusted earnings of $0.38 per share were down 7% y-o-y and were slig

[Note: Starbucks’ fiscal year 2023 ended October 1]After a 22% decline so far this year, at the current price of around $75 per share, we believe Starbucks stock (NASDAQ: SBUX), the world’s leading roaster, marketer, and retailer of specialty coffee worldwide, could s

Amazon’s stock (NASDAQ: AMZN) has gained roughly 22% YTD as compared to a 6% rise in the S&P500 index over the same period. However, at its current price of $185, the stock is trading 13% below its fair value of $213 – Trefis’ estimate for&nbs

Apple (NASDAQ:AAPL) saw its sales for Q2 FY’24 fall, amid sluggish iPhone, iPad, and wearables sales. While revenue fell by 4% year-over-year to $90.8 billion, earnings came in at $1.53 per share, roughly flat versus last year. However, the earnings were better than anticip

Chinese luxury electric vehicle maker Xpeng stock (NYSE:XPEV) delivered a total of 9,393 vehicles in April, up  32% year-over-year, despite the ongoing price war in the Chinese EV market. Growth was largely driven by the ramp-up of sales of the X9 multi-purpose vehicle which

Thanks to the Magnificent Seven, tech stocks have led the Q1 earnings season. In fact, as Sheraz Mian the Director of Zacks Investment Research points out, had it not been for the substantial earnings contribution of the Mag 7, Q1

Alphabet stock ( NASDAQ:GOOGL ) ( NASDAQ:GOOG ) surged over 10% after its Q1 announcement, marking a substantial post-earnings rally. Despite Alphabet being already one of my largest positions, its most recent report further solidified my confidence in the stock. With the company effortlessly beating Wall Street’s estimates and posting double-digit growth across the board, shares continue to appear cheap, even after reaching new all-time highs. Consequently, I remain bullish on Alphabet stock. GOOGL stock has gained 19.7% year-to-date. Q1 Results: Effortless Beat, Double-Digit Growth Persists Alphabet’s Q1 numbers marked an effortless beat against Wall Street’s estimates, with the California-based tech giant posting double-digit growth across the board. Revenues soared to $80.5 billion, as you can see in the image below, topping consensus estimates by a wide margin of $1.84 billion. The 15% revenue growth also marked a significant acceleration from the previous year’s growth of 3%. Further, EPS came in at $1.89, exceeding Street estimates by a significant margin of $0.38. Let’s take a deeper look. Source: Alphabet’s Q1-2024 Earnings Report Search, YouTube Enjoy AI-Backed Advertising Growth Momentum Alphabet’s impressive growth in Q1 was primarily fueled by the durable momentum of its AI-powered advertising solutions, driving revenues for both Google Search and YouTube. Consider the company’s use of AI in smart bidding, for instance. It predicts future ad conversions, enabling businesses to swiftly adapt to shifting demand dynamics. Moreover, products like Broad Match leverage large language models to match ads to relevant searches and thus enable advertisers to respond to what millions of people are searching for. In other words, by utilizing Alphabet’s AI solutions, businesses can now find users at speed and scale and drive improving ROI, which naturally translates to growing advertising dollars for the company. Evidently, Google Search revenues grew by 14% to $46.2 billion, while YouTube Ads revenues grew by 21% to $8.1 billion. The exciting part is that most of Alphabet’s AI solutions are only starting to roll out. We are way too early in the company’s roadmap, meaning the best is yet to come. Take P-Max, for instance, which debuted in Gemini this past February. It’s revolutionizing the creation of text and image assets, enabling businesses to promptly fulfill P-Max asset requirements. The company claims that advertisers leveraging P-Max asset generation are 63% more likely to launch a campaign with outstanding ad strength. However, this functionality is currently exclusive to the U.S. Consequently, it’s reasonable to anticipate a prolonged surge in advertiser adoption as Alphabet progressively introduces its AI solutions worldwide. Google Cloud Sees Margin Expansion, Boosts Profits Google Cloud also contributed significantly to Alphebet’s revenue growth. However, it also had a notable contribution to the company’s profitability, with the division undergoing a significant margin expansion. In particular, not only did Google Cloud revenues grow by a notable 28% to $9.6 billion, but the division’s operating margin expanded from 2.6% last year to 9.4%. It’s very encouraging to see that Q1 was Google Cloud’s fifth consecutive quarter with a positive operating profit margin. In fact, a margin expansion in Google Cloud has taken place every quarter during this five-quarter period, notably boosting Alphebet’s overall margins and EPS growth. To illustrate, in Q1, the company’s operating margin jumped to 32%, up from 25% in the previous year, which, combined with growing revenues and share repurchases, resulted in EPS skyrocketing from 62% to $1.89. Alphabet Stock Remains Cheap after the Earnings Rally Following such a strong Q1 report, Alphabet shares soared to a new all-time high. Yet, I continue to find the stock quite attractively priced compared to its future growth prospects. Following an excellent start to the year, consensus estimates for Alphabet’s full-year EPS stand at $7.51, which implies a year-over-year increase of nearly 30%. Note that this comes after FY2023’s EPS growth of 27.3%. Despite such lavish growth figures, shares trade close to 22.2x this year’s projected EPS. Even if Alphabet’s growth were to slow considerably from its current levels, the stock’s valuation still looks rather cheap, especially given Alphabet’s moat and leading position in the AI race. It’s also possible that Wall Street underestimates Alphabet’s growth growth prospects, which could imply that shares are even cheaper than they actually appear. Given the powerful combination of revenue growth and a strong margin expansion in Google Cloud, this is not a far-fetched assumption. Is GOOGL Stock a Buy, According to Analysts? Looking at Wall Street’s view on the stock, Alphabet features a Strong Buy consensus rating based on 31 Buys and seven Holds assigned in the past three months. At $189.79, the average  Alphabet stock price prediction implies 12.9% upside potential. If you’re unsure which analyst you should follow if you want to buy and sell GOOGL stock, the most profitable analyst covering the stock (on a one-year timeframe) is Mark Kelley from Stifel Nicolaus, featuring an average return of 32.12% per rating and a 95% success rate. Click on the image below to learn more. The Takeaway To sum up, Alphabet’s stellar Q1 results further strengthened my conviction in the tech giant’s prospects. With robust revenue growth driven by AI-powered advertising solutions and significant margin expansion in Google Cloud, Alphabet continues to surpass market expectations. In fact, with the market likely still not fully pricing in the added benefit of AI to the company’s results, I believe the stock price remains at rather compelling levels despite the double-digit post-earnings rally. Hence, I will keep adding to my position at current levels. Disclosure

Lean hogs settled the Monday session with contracts steady to 77 cents lower. USDA’s National Average Base Hog negotiated price was up $3.03 in the Monday afternoon report at $92.41. The CME Lean Hog Index was up another 4 cents on May 2 at $90.96. USDA’s National Pork Carcass Cutout...

The cotton market resumed its slide on Monday, as contracts were down 22 to 100 points at the close. The outside influences had little effect, as the US dollar index was up 42 points, with crude oil 57 cents higher. The US cotton crop was reported at 24% planted as...

The wheat complex faced initial selling overnight, but bulls woke up with a vengeance to rally all three exchanges on Monday. Chicago contracts ended out the day with gains of as little of 10 ¼ cents in the deferreds to 26 ¼ cents for the nearbys. Kansas City futures were...

Live cattle closed the Monday session with contracts down 15 to 87 cents across most contracts, as June was the lone higher contract, up 15 cents. Cash trade was slow to develop last week, with sales of $184 in the South and a few trades in the North in a...

Corn quickly erased the overnight weakness once the day session began, as contracts rallied throughout the day. Futures were up anywhere from 2 to 10 cents across the board, with the strength led by the front months. Export Inspections data from this morning showed 1.28 MMT of corn shipped during...

Soybeans ended the Monday session withing a few cents from the day’s high. Contracts were up 15 ¾ to 33 ¾ cents across the board at the close. Forecasts for heavy rain totals in Southern Brazil, on top of already flooded areas, with some beans still to be harvested was...

The commodity sector is heating up, with real fundamentals for a number of markets growing more bullish, as indicated by their forward curves.

Beyond (BYON) came out with a quarterly loss of $1.22 per share versus the Zacks Consensus Estimate of a loss of $0.92. This compares to loss of $0.10 per share a year ago. These figures are adjusted for non-recurring items.

Talos Energy (TALO) came out with a quarterly loss of $0.13 per share versus the Zacks Consensus Estimate of a loss of $0.29. This compares to loss of $0.01 per share a year ago. These figures are adjusted for non-recurring items.

Commercial Vehicle Group (CVGI) came out with quarterly earnings of $0.13 per share, missing the Zacks Consensus Estimate of $0.18 per share. This compares to earnings of $0.28 per share a year ago. These figures are adjusted for