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In the latest trading session, Advanced Micro Devices (AMD) closed at $105.28, marking a -0.35% move from the previous day. This move lagged the S&P 500's daily gain of 0.95%. Elsewhere, the Dow gained 0.8%, while the tech-heavy Nasdaq lost 0.28%.

Today's short video focuses on Advanced Micro Devices (NASDAQ: AMD) and recent news affecting the company. Unfortunately, there is bearish news surrounding AMD right now. First, Micron Technology (NASDAQ: MU) recently got a downgrade, which has added to the volatility in the semi

Today, I am covering my top three semiconductor stocks to buy now. I believe semiconductor stocks are the new oil, and all three of these stocks are buys at these levels and lower for long-term holds.

AMD (NASDAQ: AMD) is one of the world's leading semiconductor companies, providing computing hardware such as processors, motherboards, graphics cards, and more for some of today's most sought-after technology. The company's stock is down more than 20% in the last six months but

It has been a trying time for investors across the technology space, even those holding shares of best-in-class, profitable companies like Nvidia (NASDAQ: NVDA). Nvidia pioneered the use of graphics processing units (GPUs), and not just for high-end gaming and visualization. It a

Metaverse is the new buzzword in the tech space. Chip giant Nvidia (NVDA) defines the metaverse as “a shared virtual 3D world, or worlds, that are interactive, immersive, and collaborative.” The Metaverse will be powered by technologies like virtual reality, artificial intelligence (AI), and augmented reality (AR).

The term gained even more attention last year when social media giant Facebook changed its name to Meta Platforms (FB) to reflect the company’s vision to move “beyond 2D screens toward immersive experiences like augmented and virtual reality to help build the next evolution in social technology.”

Considering this backdrop, we used the TipRanks Stock Comparison tool to place AMD, Nvidia, and Unity Software against each other, and select the metaverse stock that could offer attractive returns.

Advanced Micro Devices (NASDAQ: AMD)

The building of the metaverse will require advanced processors, and semiconductor chip makers like AMD are well-positioned to address this demand.

AMD recently announced its collaboration with Meta Platforms as an ecosystem partner to build a Metaverse-ready radio access unit (or RAN). The company’s radio chip – Xilinx Zynq UltraScale RFSoC, will be used in the Meta’s Evenstar radio units. AMD completed the $49 billion acquisition of Xilinx in February 2022. This acquisition enhanced AMD’s portfolio by adding Xilinx’s FPGA (Field Programmable Gate Array)-based technologies.  

Further, AMD recently acquired Pensando Systems for $1.9 billion. This deal expands AMD’s data center solutions capabilities with the addition of Pensando’s high-performance data processing unit and software stack.

Last month, AMD raised its full-year 2022 revenue guidance to reflect the addition of Xilinx, strong server processor revenue, and higher revenue from semi-custom chips that are used in game consoles.

Recently, Piper Sandler analyst Harsh Kumar upgraded AMD to a Buy from Hold and increased the price target to $140 from $90 as his fears of a slowing PC market and Xilinx acquisition being a drag on earnings have not played out as expected.

Harsh sees the pullback in the stock as a good buying opportunity based on mid-to-long-term catalysts like strong server trends, robust semi-custom trends, commercial PC growth offsetting consumer PC exposure, and Xilinx acquisition.

Overall, the Street has a Moderate Buy consensus rating on AMD based on 13 Buys and nine Holds. At $134.47, the average AMD price target implies 27.28% upside potential over the next 12 months. Shares are down nearly 27% year-to-date.

Nvidia (NASDAQ: NVDA)

Nvidia, which has a dominant position in the GPU (Graphics Processing Unit) market, is helping customers build the metaverse through its Omniverse platform. Nvidia’s Omniverse is a simulation and collaboration platform that connects 3D worlds into a shared virtual universe.

Omniverse platform is now being used in many industries for several applications, including design collaboration and in creating digital twins (like simulations of real-world buildings and factories). For instance, German automaker BMW Group is using Nvidia's Omniverse to create a digital twin of an entire factory.

Overall, demand for Nvidia’s graphics chips in gaming, data centers, and metaverse is expected to drive its long-term growth. The company is also geared up to launch its first data center CPU in 2023.

Following Los Alamos National Laboratory’s recent announcement about a next-generation supercomputer called Venado at the ISC22 conference, Wells Fargo analyst Aaron Rakers stated that it was “another massive next-gen supercomputer deployment” to use Nvidia's upcoming Arm-based Grace Superchip CPUs (Central Processing Units) along with the company's Grace Hopper Superchips.

Rakers reaffirmed a Buy rating on Nvidia stock with a price target of $250.

Overall, Nvidia scores a Strong Buy consensus rating based on 27 Buys and five Holds. The average Nvidia price target of $271.41 implies 44.47% upside potential from current levels.  Shares are down 36% so far this year.

Unity Software (NYSE: U)

Unity Software’s platform offers software solutions to create, run and monetize interactive real-time 2D and 3D content for mobile phones, tablets, PCs, game consoles, and augmented and virtual reality devices. The company claims that over half of the top 1,000 mobile games on the Apple App Store and Google Play have been created using its platform.

Several companies are using Unity’s software to create digital twins, which refers to virtual copies of real-life asset, physical site, or even a person. 

Unity’s Q1 results were impacted by an internal error that resulted in reduced accuracy of a tool. Also, the company lost the value of a portion of its training data as it ingested bad data from a large customer. These headwinds impacted Unity's monetization business and offset the strong momentum in the company’s Create Solutions division as well as full-year outlook.

William Blair analyst Dylan Becker noted that Unity’s management is taking the necessary steps to address the internal error in an expedited manner, and he considers these headwinds as temporary.   

Becker continues to believe that Unity is poised to capitalize on several industry tailwinds leading to a large and growing market opportunity, which should support sustainable revenue growth of over 30% for the next several years.

Overall, the Street has a Strong Buy consensus rating on Unity stock based on 11 Buys and three Holds. The average Unity Software price target of $76 implies upside potential of 77.49% from current levels. Shares have declined 70% year-to-date.

Conclusion

AMD, Nvidia, and Unity Software are expected to enjoy strong demand as they have the tools that will help enterprises build out the metaverse. However, given the significant plunge in Unity stock, several analysts see it as a lucrative opportunity to build a position in this pick-and-shovel play for the metaverse and ensure higher returns.  

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For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.

For Immediate ReleaseChicago, IL – June 6, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in t

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The metaverse offers added opportunities for a variety of tech stocks. Grand View Research estimated a market size of $47 billion for the metaverse in 2022. It believes that the market will grow to $679 billion by 2030, a compound annual growth rate of 39%!

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

Today's video focuses on Nvidia (NASDAQ: NVDA) and recent updates on its main product, graphic processing units (GPUs). Valve recently released its monthly Steam hardware survey, which showed consumer growth for Nvidia's 3000 series GPUs. Unfortunately, Jon Peddie Research report

Next Thursday (June 9), Advanced Micro Devices (AMD) will hold its Analyst Day, the first such event since March 2020.

That might only be 2 years ago, but much has changed in the interim; the world is now on the other side of a global pandemic and faced with a whole new set of concerns with the prospect of a recession very real.

In the meantime, despite suffering like most others in 2022’s volatile stock market, AMD has further cemented its place as a proper chip giant. As Deutsche Bank’s Ross Seymore puts it, “The strength of AMD's execution since its March 2020 Analyst Day cannot be understated, as evidenced by the company ultimately beating Street 2021 revenue estimates by ~+60% and EPS estimates by +75%.”

The outsized gains are down to a combination of industry-wide and company-specific “tailwinds.”

For the former, see the pandemic-driven demand for PC/gaming and “strength” in Data Center spending. For the latter, astute leadership has steered the company superbly while AMD has also been quick to pounce when largest competitor Intel has stumbled. It has since closed the gap between the two companies considerably. The result is a market cap that has more than doubled since the previous Analyst Day.  

So, what to look forward to at the event? Seymore expects AMD will “rightfully exhibit continued confidence in its future growth potential,” although there are now more “moving parts” to consider. These include the addition of newer “product offerings” (XLNX, Pensando) and an environment where competition has intensified beyond the rivalry with just Intel. 

A relatively comprehensive roadmap detailing the plans for various segments - Data Center, PCs, Gaming, and Embedded – should also be provided, and one which will stress the “differentiations” compared to the product introduction plans issued by Intel earlier this year.

That said, despite expecting “continued strong revenue growth and solid profitability improvement” over the long term, the growing competition (Nvidia, Intel, ARM-based and so on), continued difficulty in achieving “incremental share gains,” and the overall “risk off” market mode regarding growth names, are why Seymore has a Hold (i.e. Neutral) rating for the shares. (To watch Seymore’s track record, click here)

Overall, 8 other analysts join Seymore on the sidelines, but with an additional 13 Buys, the stock claims a Moderate Buy consensus rating. Going by the $134.47 average target, the shares are expected to climb 26.5% higher over the coming year. (See AMD stock forecast on TipRanks)

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Advanced Micro Devices Inc (Symbol: AMD), where a total volume of 716,101 contracts has been traded thus far today, a contract volume which is representative of

Friday, June 3, 2022

What happened Shares of Advanced Micro Devices (NASDAQ: AMD) surged 19.1% higher in May, according to data from S&P Global Market Intelligence.

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

InvestorPlace - Stock Market News, Stock Advice & Trading Tips