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Nasdaq AMD

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 
TipRanks

Validea Detailed Fundamental Analysis - 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

4 Super Semiconductor Stocks to Buy Now and Hold for the Next 10 Years

Nasdaq AMD
2 years 10 months ago
This article was published using a series of cloud-based applications that are hosted in centralized data centers, and you're likely reading it on a mobile device or computer. None of those applications, data centers, mobile devices, and/or computers would be able to provide this
The Motley Fool

AMD, SNOW, MDB: 3 "Strong Buy" Tech Stocks to Watch Now

Nasdaq AMD
2 years 10 months ago
As the tech rally broadens out further, many investors may be inclined to spread their bets beyond the mega-cap darlings that have hogged the headlines for their impressive year-to-date performance. Amid the recent bout of market strength, Wall Street analysts have been quite busy, raising the bar on some tech stocks (such as AMD, SNOW, and MBD) that now seem to have a clearer path higher. In this piece, we'll use TipRanks' Comparison Tool to check out three tech stocks that sport "Strong Buy" ratings from the analyst community. Advanced Micro Devices ( NASDAQ:AMD) Dr. Michael Burry, the man who bet against housing ahead of the Great Financial Crisis, recently revealed that he's betting big against the semiconductor stocks. Indeed, the semiconductor plays, as a whole, have been hot of late, thanks in part to their role in the artificial intelligence (AI) boom. Valuations may have gotten a bit out of hand when it comes to certain chip plays. However, compared to its hotter peers — think Nvidia ( NASDAQ:NVDA ) — AMD looks fairly valued at 8.8 times price-to-sales (P/S), a multiple that's essentially in line with the semiconductor industry average of 8.2 times. As such, I'm staying bullish on AMD. Five-star-rated Roth MKM analyst Sujeeva De Silva, who initiated coverage on AMD stock with a Buy and a $125.00 price target, seems to think AMD still has plenty of AI upside. He's a big fan of the company's MI300X chip and its potential to take meaningful market share. I think De Silva is right on the money to be upbeat on the market-claiming potential of the new chip. Nvidia has been the semiconductor stock to own of late. That said, AMD also deserves to be in the conversation, given its tremendous pipeline of innovations, which may very well be overlooked. Sure, it will be very difficult for any firm to catch up to Nvidia on the front of AI chips and GPUs (graphics processing units) as it looks to get into the CPU game. Still, if there's a firm that may have a good chance of pulling it off, it's AMD under its legendary top boss, Lisa Su. Su defied the odds before, lifting AMD from its ominous depths of 2015 en route to a jaw-dropping quadruple-digit percentage gain. Though the road only gets tougher from here, I believe it's a mistake to think AMD under Su has no chance of giving Nvidia a good run for its money. Beyond its MI300X chip, I'd also look for AMD's coming Arm-based CPU — ARM ( NASDAQ:ARM ) is a firm that licenses chip architecture to third parties — to be a credible challenger to Nvidia and the rest of the CPU pack. It's not just AI that can power AMD higher. The company has a compelling pipeline of innovations that's sure to keep even the market leader on its toes. What is the Price Target for AMD Stock? AMD's a Strong Buy, according to analysts, with 23 Buys and seven Holds assigned in the past three months. The average AMD stock price target of $127.13 implies 6.1% upside potential. Snowflake ( NASDAQ:SNOW) Snowflake is a data warehouse company that provides infrastructure to enterprises that are serious about unlocking the power of their datasets. Amid macro headwinds, enterprise customers have been pulling back on IT spending while also laying off staff. Such cutbacks have created a pretty unfavorable climate for SaaS (software-as-a-service) firms as a whole. Despite the macro challenges, I remain bullish on SNOW stock for the long haul, given that the firm could be in for rapid growth reacceleration once the economic tides finally do turn. Looking ahead, Analyst Brian White of Monness sees the sluggishness continuing into the coming third quarter, which is on tap for November 29, 2023. White has a Hold rating on the stock and is calling for the eighth straight quarter of slowing sales. White also astutely pointed out that other cloud players have already seen the slowdown show signs of "moderating." Only time will tell if Snowflake can follow in the footsteps of other cloud players who are now being profoundly rewarded for posting better-than-feared results amid macro headwinds. Snowflake's usage-based revenue recognition model has also probably made the recent revenue slowdown look a whole lot worse than it is. On the flip side, once corporate IT spending budgets ramp up, Snowflake's revenue could turn a corner very rapidly. And that could see many investors pile into the stock after a sizeable spike. In short, Snowflake's revenue recognition can make it look worse when times are bad but better when times are good. My takeaway? Don't give up on Snowflake just because it's feeling the effects of the macro environment. Once things normalize, growth could pick up very quickly as secular trends (think AI) begin to take hold. What is the Price Target for SNOW Stock? Snowflake's a Strong Buy, according to analysts, with 23 Buys and five Holds assigned in the past three months. The average SNOW price target of $194.33 implies 20.7% upside potential. MongoDB ( NASDAQ:MDB) Database kingpin MongoDB has been hot of late, with shares now up a whopping 106% year-to-date. The analyst upgrades have also been flowing in rapidly, with the latest hike coming courtesy of Capital One Financial's Connor Murphy, who has a $427.00 price target on the stock. Bank of America Securities also initiated coverage on the stock with a Buy rating and a $450.00 price target, citing enthusiasm for the company's position in the fast-growing NoSQL database market. NoSQL databases go above and beyond SQL (a language used to query relational databases) databases, allowing for better management of a more diverse range of big data sets. Large sets of structured and semi-structured data (data that's not neatly organized in tables) are likely to be more commonplace in the age of AI. Building on the momentum from a surprising Q2 earnings beat ( earnings per share of $0.93 vs. $0.46 estimate), MongoDB stock looks to have a path back to new highs. At 18.5 times price-to-sales, though, the stock trades at a hefty premium to the software infrastructure peer group, which goes for 9.2 times price-to-sales. The stock certainly looks expensive, but relative to its long-term growth, the high price of admission seems more justifiable. As such, I'm inclined to be bullish on the stock. What is the Price Target for MDB Stock? MongoDB stock comes in as a Strong Buy on TipRanks, with 24 Buys, three Holds, and one Sell assigned by analysts in the past three months. The average MDB stock price target of $436.08 implies 12.1% upside. The Takeaway It's time for investors to look beyond mega-cap tech for year-ahead upside. The following tech plays are seen as Strong Buys by analysts. As each firm looks to surpass estimates, I'd look for the price target upgrades to flow in. Of the three names, analysts expect the most gains from Snowflake (20.7%) for the year ahead. Disclosure
TipRanks

XLK, ACN, AMD, INTC: ETF Inflow Alert

Nasdaq AMD
2 years 10 months ago
Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Technology Select Sector SPDR Fund (Symbol: XLK) where we have detected an approximate $792.9 million dollar inflow -- that's a 1.5% increase we
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