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In today's video, I discuss why these three semiconductor companies are on my radar right now, and why they can benefit from the AI market. Check out the short video to learn more, consider subscribing, and click the special offer link below.

The market’s biggest winners are frequently stocks that made their public debut within the past few years, which is one reason why the September 14 initial public offering of Arm Holdings plc (NASDAQ: ARMH) is getting so much attention.  The U.K.-based chip designer raised nearl

Chip designer Arm Holdings ( NASDAQ:ARM ) had a solid market debut,  closing about 25% higher. However,  Needham analyst Charles Shi initiated coverage on the stock with a Hold recommendation and believes its "valuation is full" and positives are already priced in.  Arm Holdings is a leader in the mobile space, as its architecture is the foundation for smartphones. However, the analyst believes that the semiconductor market has grown past the smartphone era, and the next growth phase will depend upon high-performance computing and IoT (Internet of Things), where Arm could find it difficult to compete with other players.  In a note to investors dated September 14, Shi acknowledged that Arm has been diversifying its revenue base and focusing on cloud computing, automotive, and IoT. While the company has managed to push volumes with its IoT applications, the revenue contribution from the segment remains low. On the high-performance computing side, the analyst added that the company would face challenges from Nvidia ( NASDAQ:NVDA ), Intel ( NASDAQ:INTC) , and Advanced Micro Devices ( NASDAQ:AMD ).  However, all is not gloom and doom for Arm as it could continue to derive growth through the smartphone market.  Is ARM Stock a Good Buy? Arm stock recently started trading on the exchange, which is why it does not have enough analyst coverage. While Shi remains sidelined on Arm stock,  New Street analyst Pierre Ferragu is bullish. The analyst assigned a Buy recommendation on Arm stock on September 13. However, Arm stock has already surpassed his price target of $59.  Bottom Line  As the semiconductor market is moving toward AI, Arm’s management remains confident that its CPUs (Central Processing Units) will play a key role in this transition. The company is also working with leading companies like Alphabet ( NASDAQ:GOOGL ) ( NASDAQ:GOOG ) and Nvidia to deploy its technology to run AI workloads. Further, the company expects its total addressable market to grow at a CAGR of 6.8% through 2025, driving its royalty revenues.  However, the company could face challenges expanding into IoT and high-performance computing space. Moreover, its higher dependency on China and a handful of customers could limit the upside potential.  Disclosure

Initial public offerings, or IPOs, can generate a lot of excitement, especially when there hasn't been a public offering in a long time. And last week's debut of Arm Holdings (NASDAQ: ARM) had that in spades. After launching at $51 per share on Thursday, amounting to around a $53

The comeback of Advanced Micro Devices (NASDAQ: AMD) is one of the more notable turnaround stories of the past decade. Investors left it for dead in the late-2000s as the decline of the PC appeared to leave it without a place in the semiconductor industry.

It's always a good idea to invest in companies with tried-and-true products or services -- but it's also a good idea to spice up your portfolio with a couple of bets on exciting, game-changing technologies. Before investing in the latest trends, though, it's important to do some

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

This has been an excellent year for growth stocks, with many enjoying significant rises after their sell-offs in 2022. The combination of high inflation and the Federal Reserve's interest rate hikes in response triggered a bear market that took the tech-heavy Nasdaq Composite ind

Cathie Wood's Ark Invest does things a little differently than most exchange-traded fund (ETF) and mutual fund managers. Every day, Wood publishes the stocks Ark bought and sold for each of its funds in the previous day's session, giving investors a lot of insight into what she a

What you need to know… The S&P 500 Index ($SPX ) (SPY ) Friday closed down -1.22%, the Dow Jones Industrials Index ($DOWI ) (DIA ) closed down -0.83% and the Nasdaq 100 Index ($IUXX ) (QQQ ) closed down -1.75%. Stocks on Friday closed moderately lower, with the S&P...

U.S. stocks ended sharply lower on Friday as chipmakers dropped on concerns about weak consumer demand, while rising Treasury yields pressured Amazon and other megacap growth companies.

In this piece, I evaluated two chip stocks, Nvidia ( NASDAQ:NVDA ) and Advanced Micro Devices ( NASDAQ:AMD ), using TipRanks' comparison tool to determine which is better. Nvidia targets the gaming, professional visualization, data center, and automotive markets, while AMD focuses on the data center, embedded, gaming, and PC markets. Both chipmakers have tapped into the artificial intelligence (AI) craze by highlighting their AI-related capabilities. However, Nvidia has been much more successful, with its stock up more than 200% year-to-date and over the last 12 months. Meanwhile, AMD is up only 64% year-to-date, flipping its one-year return back into the green at 24%. With such a massive difference in their year-to-date rallies, it isn't surprising that NVIDIA is the one that's profitable. Due to AMD's lack of profitability, we'll compare their price-to-sales (P/S) ratios to gauge their valuations against each other and their industry. For comparison, the U.S. semiconductor industry is trading at a P/S multiple of 7, higher than its three-year average of 5.8. For the profitable Nvidia, we'll also compare its price-to-earnings (P/E) ratio to that of its industry. The semiconductor industry is trading at a P/E of 43.9, much higher than its three-year average P/E of 28.7. Nvidia (NASDAQ:NVDA) At a P/E of 109.1 and a P/S of 34.4, Nvidia looks grossly overvalued relative to its industry and to AMD. It's even pricy versus its five-year mean P/S of 19.3 and mean P/E of 76.4. However, despite this irrational exuberance, which would generally trigger a bearish view, a combination of factors suggests a neutral view might be appropriate. On the one hand, insiders have unloaded $146 million worth of Nvidia shares over the last three months, backing the bearish side of the argument. A closer look at the activity reveals many auto-sell transactions over the last week or two. These sales may be related to the insiders' preset trading plans, in which they set prices at which they will automatically sell their shares. However, there was also an Informative Sell transaction worth $25 million two weeks ago, just below $500 a share. Importantly, Nvidia's 52-week high is $502.66, so this transaction and the large number of auto-sell transactions suggest insiders may see the chipmaker's stock as unlikely to rise further from those levels. On the other hand, there have been a few developments involving Nvidia that suggest a more constructive view might be in order. First, the company's revenue more than doubled in the most recent quarter, but its cost of goods increased by only 7%, leaving some investors confused. However, a Bernstein analyst explained that Nvidia had taken a $1.34 billion charge, including $1.22 billion in inventory-related charges, that ran through the cost of goods sold in the same quarter a year ago. A closer look reveals that when those charges are excluded, Nvidia's cost of goods sold actually exploded, rising 70% between last year's second quarter and this year's second quarter. Still, the Bernstein analyst added that a surge of that magnitude was "entirely normal" based on the robust year-over-year growth in Data Center sales. In fact, Nvidia's total revenue rose 101% year-over-year to $13.5 billion, a new record, while its Data Center revenue rose 171% year-over-year to a new record of $10.3 billion. Both readings support a more constructive view. Then, there was a "conspiracy theory" that involved allegations around CoreWeave, a GPU cloud vendor that recently listed its Nvidia chips as collateral for a $2.3 billion financing. Given Nvidia's investments in CoreWeave, social media users suggested that CoreWeave's reported inventory of Nvidia chips was actually where Nvidia's data-center revenue beat came from. However, the Bernstein analyst noted that the timing of CoreWeave's August 3 release about the financing suggested that the Nvidia chips hadn't been deployed yet and thus were not recorded in the company's second-quarter revenues. What is the Price Target for NVDA Stock?   Nvidia has a Strong Buy consensus rating based on 40 Buys, one Hold, and zero Sell ratings assigned over the last three months. At $636.32, the average Nvidia stock price target implies upside potential of 45%. Advanced Micro Devices (NASDAQ:AMD) At a P/S of 7.8, AMD looks much more reasonably valued than Nvidia, especially considering that AMD's five-year mean P/S is 8. Importantly, AMD came up only a bit shy of profitability, with its net income margin at -0.1% over the last 12 months. Additionally, the company continues to generate robust growth, making a bullish view seem appropriate.   In its most recent earnings release, AMD said its AI engagements rose more than sevenfold. Meanwhile, the company is struggling with falling PC-related demand, which resulted in its first quarterly loss in years. However, AMD guided for double-digit-percentage sequential gains in Data Center and Client revenues for the third quarter. In fact, the company plans to launch its first accelerator designed for AI in the fourth quarter, suggesting the stock could have much more room to rise over the long term. Nvidia's supply chain is being pressured by the skyrocketing AI-related demand, presenting an opportunity for AMD. The company should also benefit from sales of the CPUs that data centers use for AI processing, something that Nvidia does not sell. While AMD is playing a bit of catch-up versus Nvidia on AI, the company's long-term track record of growth and upcoming products suggest it won't be lagging its chief competitor for long. Thus, at current valuations, AMD looks attractive as a long-term buy-and-hold option, albeit a risky one. What is the Price Target for AMD Stock?   Advanced Micro Devices has a Strong Buy consensus rating based on 22 Buys, seven Holds, and zero Sell ratings assigned over the last three months. At $140.25, the average Advanced Micro Devices stock price target implies upside potential of 38.2%. Conclusion: Neutral on NVDA, Long-Term Bullish on AMD While both companies have benefited from the irrational exuberance over AI, Nvidia is far ahead of AMD, with multiple market watchers estimating the former's market share of the AI data-center-chip market at 90%. Nevertheless, at some point, valuation becomes an issue, although in Nvidia's case, the triple-digit revenue growth in the recent quarter offsets some of that concern, resulting in a neutral view. Although AMD is the winner of this pairing, as more upside seems likely over the long term, Nvidia may also rise further. However, the irrational exuberance its valuation restrain my view on NVDA stock despite the robust revenue growth. Disclosure 

U.S. stocks ended sharply lower on Friday as chipmakers dropped on concerns about weak consumer demand, while rising Treasury yields pressured Amazon and other megacap growth companies.

In today's video, I discuss why numerous semiconductor stocks were down on Friday. Check out the short video to learn more, consider subscribing, and click the special offer link below.

Tech stocks were lower late Friday afternoon, with the Technology Select Sector SPDR Fund (XLK) decreasing 2% and the Philadelphia Semiconductor index down 3.1%.

Undoubtedly one of this week’s biggest developments, chip designer Arm Holdings ARM debuted on the Nasdaq on Thursday. Shares had a strong showing, soaring more than 20% in yesterday’s session, listed initially at $51 per share.

U.S. stocks tumbled on Friday as chipmakers dropped on concerns about weak consumer demand, while rising Treasury yields pressured Amazon and other megacap growth companies.

Tech stocks were lower Friday afternoon, with the Technology Select Sector SPDR Fund (XLK) decreasing 2.1% and the Philadelphia Semiconductor index down 3%.

Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Advanced Micro Devices Inc (Symbol: AMD), where a total volume of 500,665 contracts has been traded thus far today, a contract volume which is representative of