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Nasdaq AMD

AMD Quantitative Stock Analysis

Nasdaq AMD
2 years 10 months ago
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
Validea

Where Will AMD Stock Be in 1 Year?

Nasdaq AMD
2 years 10 months ago
Shares of Advanced Micro Devices (NASDAQ: AMD) have delivered impressive returns over the past year, rising 64% and crushing the Nasdaq Composite index's gains of 27% by a wide margin thanks to the artificial intelligence (AI)-fueled growth of the semiconductor industry and a tur
The Motley Fool

Thinking About Shorting Intel Stock? (NASDAQ:INTC) Think Again

Nasdaq AMD
2 years 10 months ago
It’s easy to respect technology stalwart Intel ( NASDAQ:INTC ) but difficult to truly get on board with the stock. After all, its rivals like Nvidia ( NASDAQ:NVDA ) and Advanced Micro Devices ( NASDAQ:AMD ) have pressured or dominated Intel in key markets. However, those thinking about shorting its shares should think again, mainly due to bullish options activity. Tactically, I am bullish on INTC stock. Positive Q3 Underlines the Fundamental Case for INTC Stock To be clear, while the main bullish catalyst for INTC stock centers on technical dynamics to be discussed later, it’s not devoid of a fundamental argument. Indeed, a surprisingly robust third-quarter earnings print – along with better-than-expected Q4 guidance – invigorated sentiment. As TipRanks contributor Abdulrasaq Ariwoola stated, Intel posted earnings per share of 41 cents, easily beating Wall Street’s consensus target of 22 cents per share. In addition, the tech firm rang up sales of $14.2 billion. In fairness, this tally represented an 8% decline on a year-over-year basis. However, it beat the consensus estimate by $600 million. In addition, Intel’s EPS enjoyed a boost due to reduced expenses, per a statement by company CFO David Zinsner. As Ariwoola mentioned, “The company reported that it now employs 120,300 people, a decrease from 131,500 the previous year.” Justifying optimism for INTC stock, management guided revenue to land between $14.6 billion and $15.6 billion. That’s considerably above the consensus estimate, which called for an average sales target of $14.31 billion. Further, Intel anticipates EPS to hit 44 cents. On the other hand, the Street projected EPS of 32 cents for the current quarter. INTC stock gained 9% the day after reporting its earnings. However, the real story is that since the disclosure, the security failed to look back, leaving pessimists perplexed. That’s because not all of the print presented a rosy narrative. In particular, Data Center and Artificial Intelligence-related sales – including server chips – fell by 10% to $3.8 billion. Still, it’s the options market that may keep the fire burning. Let's dive in. Intel Bears Remain Vulnerable to Possible Short-Covering Frenzy As previously mentioned, while Intel delivered the goods in its latest earnings report, it still faces incredible competitive pressures. This situation seems evident in the activity of options traders, particularly institutional ones, as reflected in options flow data. The data show significant activity regarding written (i.e. sold) call options. Primarily, the concern for the bears is the open vulnerability to possible short-covering activity. To best explain the panic effect of a sold call gone bad, it’s akin to agreeing to sell a car at a specific price and at a certain time but without actually possessing the vehicle in question. Should the car start to rise in value for whatever reason, the seller faces a choice: buy the car now to avoid further damage or wait it out and hope for the best. Another wrinkle when it comes to the sold INTC calls is the nature of the contractual agreement. As you probably know, an option holder enjoys the right but not the obligation to exercise the contract. On the flip side, an option writer (seller) has the obligation but not the right to fulfill the contract under exercise. In other words, the writer has zero say what the countervailing party does. So, for example, the entity or entities that sold 8,692 contracts of the Dec 15 ’23 42.00 call may be feeling hot under the collar. At the time of the transaction, INTC stock traded hands at $43.11. Now, it's near $44.50. More importantly, the open interest for this call stands at 9,972 contracts. Consequently, there could still be many bears exposed to this trade, perhaps requiring short covering. If short covering occurs, that would put even more upside pressure on INTC stock. The Bears Have a Point To be fair to the pessimists, they do have a point from a fundamental perspective. Mainly, INTC stock just isn’t that attractive when looking at its key financial metrics. For instance, the market prices INTC at a trailing-year revenue multiple of 3.5x. That’s a bit lower than the underlying semiconductor sales multiple of 3.9x. Nevertheless, this multiple is a bit deceptive because investors don’t have much confidence in Intel’s market position. Last year, the company posted revenue of $63.05 billion, well below the prior year’s tally of $79.02 billion. So, the bullish narrative largely centers on the tactical implications of options trading, specifically the potential for short covering. Is INTC Stock a Buy, According to Analysts? Turning to Wall Street, INTC stock has a Hold consensus rating based on five Buys, 18 Holds, and four Sell ratings. The average INTC stock price target is $37.39, implying 16% downside risk. Takeaway: INTC Stock Pessimists are Right, Except for One Detail In many ways, bearish traders who don’t see much upside for INTC stock have almost every component of the narrative called correctly. In a competitive ecosystem, Intel appears to have lost its touch. However, the pessimists have so far been wrong about the contrarian bullish tactic. So long as INTC keeps marching higher, a dangerous game of chicken is in play. Disclosure
TipRanks

2 Hypergrowth Tech Stocks to Buy in 2023 and Beyond

Nasdaq AMD
2 years 10 months ago
The tech market was hit particularly hard last year as rising interest rates caused reductions in consumer and commercial spending. Product sales plunged, with shoppers reluctant to upgrade various devices. Meanwhile, budget cuts saw businesses de-prioritize cloud and advertising
The Motley Fool

Guru Fundamental Report for AMD

Nasdaq AMD
2 years 10 months ago
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
Validea

AMD, NVDA, or INTC: Which Chip Stock Could Generate the Best Returns?

Nasdaq AMD
2 years 10 months ago
Chip companies have been in focus this year due to the massive opportunity created by the generative artificial intelligence ambitions of tech giants following the success of OpenAI’s ChatGPT. Further, after suffering for several quarters, many semiconductor companies could benefit from the gradual recovery expected in the PC market next year. Bearing this backdrop in mind, we used TipRanks’ Stock Comparison Tool to place Advanced Micro Devices ( NASDAQ:AMD ), Nvidia ( NASDAQ:NVDA ), and Intel ( NASDAQ:INTC ) to find the best chip stock as per Wall Street experts. Advanced Micro Devices (NASDAQ:AMD) While Nvidia has stolen the limelight from all other semiconductor stocks this year due to the demand for its graphics processing units (GPUs) in generative AI, several analysts remain bullish about Advanced Micro Devices’ potential to grab the opportunities in the generative AI space. The company is expected to benefit in the upcoming quarters from the demand for its latest MI300 chips and recovery in the PC market. During the Q3 earnings call, management said that it expects AMD's Data Center GPU revenue to be about $400 million in the fourth quarter and surpass $2 billion in 2024, backed by the demand for MI300 chips. This, as per the company, would make MI300 its fastest product to ramp to sales of $1 billion. Is AMD a Buy, Sell, or Hold? On November 13, Roth MKM analyst Sujeeva De Silva initiated coverage of AMD stock with a price target of $125. The analyst pointed out that AMD’s premium valuation of P/E (price-to-earnings multiple based on calendar year 2024 earnings estimates) of 33x, compared to the overall technology peers' average P/E of 26x, reflects the company’s relative growth opportunity. De Silva believes that the company’s differentiated portfolio of high-performance compute and networking processors and accelerators represent a solid investment opportunity. He added that the company is well-positioned from a product portfolio point of view to address the growing data center infrastructure market. Also, checks by the analyst’s firm reveal that AMD is poised to win further market share in the cloud server space and is making progress in the enterprise market. With 23 Buys and seven Holds, AMD scores Wall Street’s Strong Buy consensus rating. At $127.13, the average price target suggests a modest upside potential of 5.4%. Shares have jumped more than 86% so far in 2023.   Nvidia (NASDAQ:NVDA) This year has been a remarkable one for Nvidia. The generative AI-induced demand for the company’s advanced GPUs has helped NVDA deliver stellar results in recent quarters and triggered a 237% year-to-date rally in the stock. The company’s GPUs are being used by several tech giants to build and train generative AI models. Following the robust performance in the first half of the fiscal year, expectations are high from Nvidia’s fiscal third-quarter results, scheduled to be announced on November 21. Analysts expect the company’s Q3 FY24 revenue to surge 173% year-over-year, backed by solid Data Center business. This revenue growth estimate reflects further acceleration in NVDA’s top-line growth compared to 101% in Q2 FY24. Wall Street expects adjusted EPS to jump to $3.37 in Q3 FY24 from $0.58 in the prior-year quarter.   What is NVDA's Price Target? At the recently held Supercomputing 23 event, Nvidia unveiled its HGX H200 AI accelerator, which is an upgrade to the H100. Bank of America analyst Vivek Arya noted that the H200 is compatible with its predecessor H100 installations, which will facilitate faster time to market and is in fact "critical," given that hyperscalers do not need to invest to reconfigure their existing hardware platform to the upgraded offering. Arya believes that upgrade simplicity enhances the competitive portfolio that Nvidia holds. Calling NVDA his “top pick,” the analyst reiterated a Buy rating on the stock with a price target of $650 on November 13. Including Arya, 37 analysts have a Buy recommendation for Nvidia while only one analyst has a Hold rating. The average price target of $648.01 implies 31.5% upside potential.   Intel (NASDAQ:INTC) Intel shares have rallied more than 21% over the past one month and are up 66% year-to-date. The company’s better-than-projected third-quarter performance impressed investors. The company’s adjusted EPS increased nearly 11% to $0.41 per share, easily exceeding analysts’ adjusted EPS estimate of $0.22. Despite an 8% decline in Q3 2023 revenue to $14.2 billion, adjusted EPS increased due to the company’s expense discipline. After losing market share to rivals like AMD in recent years, Intel is now focusing on improving the competitiveness of its offerings and streamlining its business. The company also aims to improve its profitability and is targeting cost savings of $8 billion to $10 billion by 2025.    What is the Prediction for Intel Stock? Mizuho analyst Vijay Rakesh recently upgraded Intel stock, citing many upcoming server product rollouts and foundry customer announcements. That said, most analysts remain cautious about Intel, including Morgan Stanley analyst Joseph Moore. In late October, Moore raised his price target for Intel to $39 from $35 and reiterated a Hold rating on the stock. While the analyst acknowledged that Q3 was a good quarter for Intel mainly due to PCs, he thinks that the "data center malaise" continued in the quarter. Consequently, he kept his second-half estimates essentially unchanged. While Moore expects the recent results to benefit the stock over the near term, he contends that for Intel the "focus is the roadmap, not numbers." Overall, Wall Street’s Hold consensus rating on INTC stock is based on five Buys, 18 Holds, and four Sells. The average price target of $37.39 implies a possible downside of 14.6% from current levels. Conclusion Analysts are bullish on Advanced Micro Devices and Nvidia, while they are sidelined on Intel, as many think that there is much more to be done for the company to improve its competitiveness in the chip market. Despite the phenomenal year-to-date rally in Nvidia shares, Wall Street continues to see higher upside potential in the stock than in AMD and Intel.   Disclosure 
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