Below is Validea's guru fundamental report for ADVANCED MICRO DEVICES, INC. (AMD). Of the 22 guru strategies we follow, AMD rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. This momentum model looks for a combination of fundam
There's no question that Advanced Micro Devices (NASDAQ: AMD) has failed to keep up with rival NVIDIA (NASDAQ: NVDA) in the data-center GPU market. While AMD sells data-center GPUs of its own, aimed at accelerating a wide variety of workloads, estimates for NVIDIA's share in the
GlobalFoundries (GFS) is the third largest semiconductor foundry in the world behind Taiwan Semi (TSM) and Samsung. Recent company updates scaled back immediate growth prospects, and that's why the stock is a Zacks #5 Rank.GFS off
Tech stocks roared back, wrapping up the first six months with massive gains. The prospect of less aggressive interest rate hikes in the future, moderation in the inflation rate, and the grand entrance of Generative
AI (Artificial Intelligence) are behind investors’ buoyant mood. While the economy still exhibits weakness and valuations appear rich, the recovery in cloud computing and AI-led opportunities indicate that the bull run in tech could sustain in the second half of 2023.
While the sector is expected to benefit from secular trends, investors should note that there could be select buying opportunities across the tech landscape in the second half of this year. But before we move ahead, let’s look at the recent price performance of technology stocks.
Tech Stocks – The Stellar 1H Price Performance
Contrary to the fears of recession and weak end-market demand, the buzz around AI led Nvidia's (
NASDAQ:NVDA
) stock to
attain $1 trillion in market cap. Meanwhile, shares of Meta Platforms (
NASDAQ:META
) are up about 145% year-to-date, thanks to the implementation of deep cost-cutting measures and growing momentum in its products and platforms.
At the same time, Amazon's (
NASDAQ:AMZN
) stock has gained over 55%, reflecting the easing of the inflationary environment, cost-cutting initiatives, and an expected recovery in its AWS (Amazon Web Services) segment.
Apple's (
NASDAQ:AAPL
) stock grew about 48% due to the momentum in Services revenue and easing supply-chain headwinds. Meanwhile, Microsoft (
NASDAQ:MSFT
) and Alphabet (
NASDAQ:GOOGL
)(
NASDAQ:GOOG
) stocks also defied the weak general market trend and have gained 42% and 38, respectively, on a year-to-date basis.
Thanks to this recovery, the tech-heavy NASDAQ 100 Index (
NDX
) is up about 39%. Further, tech and AI-focused ETFs (
Exchange-Traded funds) like the Invesco QQQ Trust (
QQQ
) and Global X Robotics & Artificial Intelligence ETF (
BOTZ
) have also delivered substantial gains and witnessed
large inflows of cash.
The 2H 2023 Outlook
Thanks to the solid secular tailwinds, it is hard to find shorts among these large tech companies. Exposure to generative AI, a recovery in cloud computing, and a rebound in end-market demand could continue to fuel growth for these companies.
TipRanks’
Stock Comparison tool shows that Wall Street analysts are bullish about these tech stocks. All of these stocks command a Strong Buy consensus rating on TipRanks. However, analysts’ average 12-month price targets show limited upside potential.
Nvidia is the only big tech stock offering double-digit upside potential based on the average price target. Despite the stellar gains, the double-digit upside potential in NVDA stock shows the recognition of NVDA’s leadership in the AI space.
Besides for NVDA, shares of Amazon could exceed analysts’ average price target, reflecting reacceleration in AWS’ growth rate, AI-led tailwinds (AWS’ Generative AI offerings), and cost-saving measures.
Besides for these mega-cap stocks, the
Top Wall Street analysts are also bullish about Advanced Micro Devices (
NASDAQ:AMD
), CrowdStrike (
NASDAQ:CRWD
), ACM Research (
NASDAQ:ACMR
), Axon Enterprise (
NASDAQ:AXON
), and EngageSmart (
NYSE:ESMT
).
These tech stocks offer decent upside potential over the next 12 months based on analysts’ price targets.
Bottom Line
Despite macro uncertainty, the recent rally in technology stocks shows investors’ optimism in the sector. Further, analysts’ Strong Buy consensus rating on these stocks also substantiates the bullish view. Moreover, the expected increase in IT spending by enterprises on cloud and AI applications bodes well for growth.
Disclosure
The average one-year price target for Advanced Micro Devices (NASDAQ:AMD) has been revised to 133.01 / share. This is an increase of 25.56% from the prior estimate of 105.93 dated June 1, 2023. The price target is an average of many targets provided by analysts. The latest targ
Fintel reports that on July 5, 2023, Northland Capital Markets upgraded their outlook for Advanced Micro Devices (NASDAQ:AMD) from Market Perform to Outperform . Analyst Price Forecast Suggests 14.84% Upside
Advanced Micro Devices (AMD) closed the most recent trading day at $113.95, moving -1.61% from the previous trading session. This change lagged the S&P 500's 0.2% loss on the day. At the same time, the Dow lost 0.38%, and the
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Advanced Micro Devices (AMD) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
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Below is Validea's guru fundamental report for ADVANCED MICRO DEVICES, INC. (AMD). Of the 22 guru strategies we follow, AMD rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. This momentum model looks for a combination of fundam
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Below is Validea's guru fundamental report for ADVANCED MICRO DEVICES, INC. (AMD). Of the 22 guru strategies we follow, AMD rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. This momentum model looks for a combination of fundam
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In this video, I will discuss the seven best AI stocks, which can have significant upside for long-term investors. Check out the short video to learn more, consider subscribing, and click the special offer link below.