Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the most promising future stocks to buy now. Advanced Micro Devices, Inc. (NASDAQ:AMD) received rating updates from UBS and Truist on February 4. UBS revised the price target on the stock to $310 from $330, maintaining a Buy rating on the shares and telling investors that Advanced Micro Devices, Inc. (NASDAQ:AMD) managed to outperform peers like Broadcom and Nvidia this year. These positive trends were supported by expectations of server strength.
Cantor Keeps Overweight on AMD Despite Target Cut, Citing Strong AI Tailwinds
However, the firm stated that the near-term EPS upside is limited because of a $1 billion gaming business cut. Despite that, CPU and GPU fundamentals remain positive, and a clear path to over $11 EPS in 2027 and more than $15 in 2028 appears visible. UBS thus believes that Advanced Micro Devices, Inc. (NASDAQ:AMD) could benefit from significant operating and EPS leverage in the latter part of the decade.
Truist also revised the price target on Advanced Micro Devices, Inc. (NASDAQ:AMD), lifting it to $283 from $277 while keeping a Buy rating on the stock and recommending that investors buy the weakness as the company’s “long-term growth message overwhelms the imperfections in Q4”.
Advanced Micro Devices, Inc. (NASDAQ:AMD) is a global semiconductor company focused on high-performance computing, visualization technologies, and graphics. The company’s technologies advance the future of the data center, embedded, gaming, and PC markets.
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AMD stock rose 77.3% in 2025, nearly doubling the S&P 500’s return and outpacing Nvidia in the last three months.
OpenAI signed a multi-year deal to buy 6 gigawatts of AMD Instinct AI accelerators, representing a $120 billion revenue opportunity over the next 5 years.
The deal signals that AMD can compete with Nvidia for high-end AI workloads.
Shares of AMD(NASDAQ: AMD) rose 77.3% in 2025, according to data from S&P Global Market Intelligence. In the same period, the S&P 500 (SNPINDEX: ^GSPC) market index gained 16.4% and AMD rival Nvidia(NASDAQ: NVDA) jumped 38.9% higher.
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AMD’s price chart stayed close to Nvidia’s (and far above the broader market’s) through the first 9 months of last year, indicating continued investor interest in the artificial intelligence (AI) boom that started in November of 2022. But AMD took a solid year-to-date lead in October as a key AI player committed to buying a lot of AMD’s Instinct chips over the next few years.
On Oct. 6, ChatGPT developer OpenAI unveiled a multi-year contract that will put 6 gigawatts of AMD Instinct AI accelerators in OpenAI’s data centers over the next five years. The deal could also make OpenAI a major owner of AMD stock, as it includes stock warrants for up to 160 million AMD shares that will vest (convert into common shares) as AMD delivers its gigawatts of number-crunching hardware. That would be approximately 10% of AMD’s stock.
The shipments will start in the second half of 2026 and ramp up to larger volumes and next-generation Instinct chips in 2027. AMD CEO Lisa Su called the agreement “a true win-win,” and OpenAI CEO Sam Altman highlighted AMD’s high-performance products.
AMD’s stock skyrocketed 26% that fine Monday, rising 41% in one week. OpenAI’s hardware deals have market-moving power.
Image source: Advanced Micro Devices.
There are a few important quirks in AMD’s OpenAI deal.
One AMD Instinct card draws roughly 1,000 watts of power. Thus, 6 gigawatts’ worth of these AI accelerators should involve approximately 6 million processors. The current generation of Instinct MI350 cards is priced in the neighborhood of $20,000 per card, and the improved MI 450 series that OpenAI is buying (and later generations in a 5-year deal) may carry a higher price. So AMD’s revenue opportunity works out to $120 billion or more. Again, it’s over 5 years but still a significant growth driver.
The OpenAI deal was an eye-opener for investors, as well as for potential customers. If OpenAI thinks AMD chips are worth a huge multi-year commitment, other hyperscalers should give the Instinct series a whirl, too.
I must note that OpenAI isn’t going all-in on AMD accelerators. The ChatGPT maker inked an even larger chip-supply contract with Nvidia two weeks before the AMD Instinct announcement. However, that deal hardly moved Nvidia’s stock, as Wall Street had largely expected such an announcement.
AMD’s OpenAI partnership matters because it proves that AMD can compete with Nvidia where it matters the most. If you were waiting for a big AI win before investing in AMD stock, OpenAI just gave you 6 gigawatts of reasons to make that move.
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NEW YORK (AP) — The U.S. stock market climbed again Tuesday on hopes for a coming cut to interest rates.
The S&P 500 rose 0.9% after breaking out of a morning lull and is back within 1.8% of its all-time high. The Dow Jones Industrial Average rallied 664 points, or 1.4%, and the Nasdaq composite gained 0.7%.
Stocks got a boost from easing yields in the bond market. Lower interest rates can cover up many sins in financial markets, including prices going too high, and hopes are strong that the Federal Reserve will cut its main interest rate at its next meeting to juice the economy further.
A raft of mixed economic data on Tuesday left traders betting on a nearly 83% probability that the Fed will cut in December, according to data from CME Group. That’s roughly the same as a day before and up sharply from the coin flip’s chance that they saw just a week ago.
Easier rates can boost the economy by encouraging households and companies to borrow more and investors to pay higher prices for investments than they would otherwise.
A third report, meanwhile, said inflation at the wholesale level was a touch worse in September than economists expected, but a closely tracked underlying trend was slightly better. That’s important because lower interest rates can make inflation worse, and high inflation is the main deterrent that could keep the Fed from cutting rates.
After taking all the data together, economists suggested the Fed and its chair, Jerome Powell, could be leaning toward cutting rates on Dec. 10. The Fed has already cut rates twice this year in hopes of shoring up the slowing job market.
“Taking a pause on rate cuts would probably do more damage to sentiment than a cut would help,” according to Brian Jacobsen, chief economist at Annex Wealth Management, who also said “Powell doesn’t need to be the Grinch that stole Christmas.”
Easier interest rates can give particularly big boosts to smaller companies, because many of them need to borrow to grow. The Russell 2000 index of the smallest U.S. stocks jumped 2.1% to lead the market.
Elsewhere on Wall Street, several retailers leaped after delivering stronger profits for the summer than analysts expected.
Abercrombie & Fitch soared 37.5% after the apparel seller reported a better profit than expected. It also raised the bottom end of its forecasted range for revenue and profit over the full year.
Kohl’s surged 42.5% after reporting a profit for the latest quarter, when analysts were expecting a loss. Best Buy rose 5.3% after boosting its profit forecast for the full year following a better-than-expected third quarter, citing strength across computing, gaming and mobile phones.
Dick’s Sporting Goods erased an early drop of 4% to add 0.2%. It raised its forecast for results at its Dick’s stores, though its purchase of Foot Locker is requiring some work. Executive Chairman Ed Stack said the company is “cleaning out the garage” at Foot Locker by clearing inventory, closing poorly performing stores and making other moves.
Alphabet rose another 1.5%, continuing a strong run on excitement about its recently released Gemini AI model. Chinese giant Alibaba, meanwhile, saw its stock that trades in the United States fall 2.3% after losing an early gain. It reported stronger revenue than analysts expected for the latest quarter thanks in part to the AI boom, but its overall profit fell short of forecasts.
Some chip companies dropped sharply following a report from The Information that Meta Platforms is in talks to spend billions of dollars on AI chips from Alphabet instead of them. Nvidia sank 2.6% and Advanced Micro Devices dropped 4.1%.
All told, the S&P 500 rose 60.76 points to 6,765.88. The Dow Jones Industrial Average rallied 664.18 to 47,112.45, and the Nasdaq composite gained 153.59 to 23,025.59.
In the bond market, the yield on the 10-year Treasury eased to 4.00% from 4.04% late Monday.
In stock markets abroad, indexes rose across Europe and Asia. Germany’s DAX returned 1%, and stocks in Shanghai climbed 0.9% for two of the world’s bigger moves.
TAIPEI, Taiwan (AP) — OpenAI and Taiwan electronics giant Foxconn have agreed to a partnership to design and manufacture key equipment for artificial intelligence data centers in the U.S. as part of ambitious plans to fortify American AI infrastructure.
Foxconn, which makes AI servers for Nvidia and assembles Apple products including the iPhone, will be co-designing and developing AI data center racks with OpenAI under the agreement, the companies said in separate statements on Thursday and Friday.
The products Foxconn will manufacture in its U.S. facilities include cabling, networking and power systems for AI data centers, the companies said. OpenAI will have “early access” to evaluate and potentially to purchase them.
Foxconn has factories in the U.S., including in Wisconsin, Ohio and Texas. The initial agreement does not include financial obligations or purchase commitments, the statements said.
The Taiwan contract manufacturer, formally known as Hon Hai Precision Industry Co., has been moving to diversify its business, developing electric vehicles and acquiring other electronics companies to build out its product offerings.
A sleek Model A EV made by the group’s automaking affiliate Foxtron was on display at Friday’s event.
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“This year, Model A. ‘A’,’ for affordable,” said Jun Seki, chief strategy officer for Foxconn’s EV business.
The tie-up with OpenAI can also help Taiwan, a self-governed island claimed by China, to build up its own computing resources, said Alexis Bjorlin, a Nvidia vice president.
“This allows Taiwan’s domain knowledge and key technology data to remain local and ensure data security,” she said.
“This partnership is a step toward ensuring the core technologies of the AI era are built here,” Sam Altman, CEO of San Francisco-based OpenAI, said in the statement. “We believe this work will strengthen U.S. leadership and help ensure the benefits of AI are widely shared.”
OpenAI has committed $1.4 trillion to building AI infrastructure. It recently entered into multi-billion partnerships with Nvidia and AMD to expand the extensive computing power needed to support its AI models and services. It is also partnering with US chipmaker Broadcom in designing and making its own AI chips.
But its massive spending plans have worried investors, raising questions over its ability to recoup its investments and remain profitable. Altman said this month that OpenAI, a startup founded in 2015 and maker of ChatGPT, is expected to reach more than $20 billion in annualized revenue this year, growing to “hundreds of billions by 2030.”
Foxconn’s Taiwan-listed share price has risen 25% so far this year, along with the surge in prices for many tech companies benefiting from the craze for AI.
The Taiwan company’s net profit in the July-September quarter rose 17% from a year earlier to just over 57.6 billion new Taiwan dollars ($1.8 billion), with revenue from its cloud and networking business, including AI servers, contributing the most business.
“We believe the importance of the AI industry is increasing significantly,” Liu said during Foxconn’s earnings call this month.
“I am very optimistic about the development of AI next year, and expect our cooperation with major clients and partners to become even closer,” said Liu.
Americana Partners LLC decreased its stake in shares of Advanced Micro Devices, Inc. (NASDAQ:AMD – Free Report) by 35.1% during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 15,092 shares of the semiconductor manufacturer’s stock after selling 8,162 shares during the quarter. Americana Partners LLC’s holdings in Advanced Micro Devices were worth $2,142,000 at the end of the most recent reporting period.
A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Dogwood Wealth Management LLC raised its stake in shares of Advanced Micro Devices by 2,311.1% in the second quarter. Dogwood Wealth Management LLC now owns 217 shares of the semiconductor manufacturer’s stock worth $30,000 after purchasing an additional 208 shares during the last quarter. Avion Wealth increased its holdings in Advanced Micro Devices by 49.3% in the 2nd quarter. Avion Wealth now owns 218 shares of the semiconductor manufacturer’s stock worth $30,000 after buying an additional 72 shares during the period. West Branch Capital LLC increased its holdings in Advanced Micro Devices by 3,057.1% in the 2nd quarter. West Branch Capital LLC now owns 221 shares of the semiconductor manufacturer’s stock worth $31,000 after buying an additional 214 shares during the period. Bear Mountain Capital Inc. raised its position in Advanced Micro Devices by 75.0% during the 1st quarter. Bear Mountain Capital Inc. now owns 350 shares of the semiconductor manufacturer’s stock worth $34,000 after buying an additional 150 shares during the last quarter. Finally, Financial Network Wealth Advisors LLC lifted its stake in Advanced Micro Devices by 185.3% during the 1st quarter. Financial Network Wealth Advisors LLC now owns 331 shares of the semiconductor manufacturer’s stock valued at $34,000 after acquiring an additional 215 shares during the period. Hedge funds and other institutional investors own 71.34% of the company’s stock.
Advanced Micro Devices Stock Up 4.5%
AMD stock opened at $243.98 on Tuesday. Advanced Micro Devices, Inc. has a 52 week low of $76.48 and a 52 week high of $267.08. The company has a quick ratio of 1.81, a current ratio of 2.49 and a debt-to-equity ratio of 0.05. The firm has a 50-day simple moving average of $200.97 and a 200-day simple moving average of $160.39. The stock has a market capitalization of $397.21 billion, a P/E ratio of 140.22, a P/E/G ratio of 2.42 and a beta of 1.93.
Advanced Micro Devices (NASDAQ:AMD – Get Free Report) last posted its quarterly earnings data on Tuesday, November 4th. The semiconductor manufacturer reported $1.20 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.17 by $0.03. Advanced Micro Devices had a return on equity of 7.54% and a net margin of 9.57%.The company had revenue of $9.25 billion for the quarter, compared to analysts’ expectations of $8.76 billion. During the same period in the previous year, the firm posted $0.92 EPS. Advanced Micro Devices’s revenue was up 35.6% compared to the same quarter last year. Advanced Micro Devices has set its Q4 2025 guidance at EPS. Equities analysts forecast that Advanced Micro Devices, Inc. will post 3.87 earnings per share for the current fiscal year.
Insider Transactions at Advanced Micro Devices
In other Advanced Micro Devices news, SVP Ava Hahn sold 2,868 shares of Advanced Micro Devices stock in a transaction on Monday, October 6th. The shares were sold at an average price of $226.01, for a total transaction of $648,196.68. Following the sale, the senior vice president owned 9,033 shares of the company’s stock, valued at $2,041,548.33. The trade was a 24.10% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, EVP Mark D. Papermaster sold 16,800 shares of the business’s stock in a transaction dated Wednesday, October 15th. The stock was sold at an average price of $224.28, for a total transaction of $3,767,904.00. Following the transaction, the executive vice president owned 1,714,505 shares in the company, valued at $384,529,181.40. The trade was a 0.97% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 264,118 shares of company stock worth $44,448,619. Company insiders own 0.06% of the company’s stock.
Analyst Upgrades and Downgrades
AMD has been the topic of a number of research reports. Jefferies Financial Group set a $300.00 target price on shares of Advanced Micro Devices and gave the stock a “positive” rating in a report on Monday, October 6th. KGI Securities set a $260.00 price target on Advanced Micro Devices and gave the stock an “outperform” rating in a research report on Monday, October 13th. UBS Group boosted their price objective on Advanced Micro Devices from $265.00 to $300.00 and gave the company a “buy” rating in a report on Wednesday, November 5th. Barclays upped their target price on Advanced Micro Devices from $200.00 to $300.00 and gave the stock an “overweight” rating in a research note on Monday, October 6th. Finally, Melius Research set a $300.00 price target on Advanced Micro Devices in a research report on Monday, October 6th. Three investment analysts have rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating and eleven have assigned a Hold rating to the company. Based on data from MarketBeat, Advanced Micro Devices presently has an average rating of “Moderate Buy” and an average target price of $263.26.
Advanced Micro Devices, Inc operates as a semiconductor company worldwide. It operates through Data Center, Client, Gaming, and Embedded segments. The company offers x86 microprocessors and graphics processing units (GPUs) as an accelerated processing unit, chipsets, data center, and professional GPUs; and embedded processors, and semi-custom system-on-chip (SoC) products, microprocessor and SoC development services and technology, data processing unites, field programmable gate arrays (FPGA), and adaptive SoC products.
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SEATTLE (AP) — OpenAI and Amazon have signed a $38 billion deal that enables the ChatGPT maker to run its artificial intelligence systems on Amazon’s data centers in the U.S.
OpenAI will be able to power its AI tools using “hundreds of thousands” of Nvidia’s specialized AI chips through Amazon Web Services as part of the deal announced Monday.
Amazon shares increased 4% after the announcement.
The agreement comes less than a week after OpenAI altered its partnership with its longtime backer Microsoft, which until early this year was the startup’s exclusive cloud computing provider.
California and Delaware regulators also last week allowed San Francisco-based OpenAI, which was founded as a nonprofit, to move forward on its plan to form a new business structure to more easily raise capital and make a profit.
“The rapid advancement of AI technology has created unprecedented demand for computing power,” Amazon said in a statement Monday. It said OpenAI “will immediately start utilizing AWS compute as part of this partnership, with all capacity targeted to be deployed before the end of 2026, and the ability to expand further into 2027 and beyond.”
AI requires huge amounts of energy and computing power and OpenAI has long signaled that it needs more capacity, both to develop new AI systems and keep existing products like ChatGPT answering the questions of its hundreds of millions of users. It’s recently made more than $1 trillion worth of financial obligations in spending for AI infrastructure, including data center projects with Oracle and SoftBank and semiconductor supply deals with chipmakers Nvidia, AMD and Broadcom.
Some of the deals have raised investor concerns about their “circular” nature, since OpenAI doesn’t make a profit and can’t yet afford to pay for the infrastructure that its cloud backers are providing on the expectations of future returns on their investments. OpenAI CEO Sam Altman last week dismissed doubters he says have aired “breathless concern” about the deals.
“Revenue is growing steeply. We are taking a forward bet that it’s going to continue to grow,” Altman said on a podcast where he appeared with Microsoft CEO Satya Nadella.
Amazon is already the primary cloud provider to AI startup Anthropic, an OpenAI rival that makes the Claude chatbot.
NEW YORK (AP) — It’s a tough time for the job market.
Amid wider economic uncertainty, some analysts have said that businesses are at a “no-hire, no fire” standstill. That’s caused many to limit new work to only a few specific roles, if not pause openings entirely. At the same time, some sizeable layoffs have continued to pile up — raising worker anxieties across sectors.
Some companies have pointed to rising operational costs spanning from President Donald Trump’s barrage of new tariffs and shifts in consumer spending. Others cite corporate restructuring more broadly — or, as seen with big names like Amazon, are redirecting money to artificial intelligence.
Federal employees have encountered additional doses of uncertainty, impacting worker sentiment around the job market overall. Shortly after Trump returned to office at the start of the year, federal jobs were cut by the thousands. And many workers are now going without pay as the U.S. government shutdown nears its fourth week.
“A lot of people are looking around, scanning the job environment, scanning the opportunities that are available to them — whether it’s in the public or private sector,” said Jason Schloetzer, professor business administration at Georgetown University’s McDonough School. “And I think there’s a question mark around the long-term stability everywhere.”
Government hiring data is on hold during the shutdown, but earlier this month a survey by payroll company ADP showed that the private sector lost 32,000 jobs in September.
Here are some companies that have moved to cut jobs recently.
General Motors
General Motors moved to lay off about 1,700 workers across manufacturing sites in Michigan and Ohio on Wednesday, as the auto giant adjusts to slowing demand for electric vehicles.
Hundreds of additional employees are reportedly slated for “temporary layoffs.” And GM has recently moved to downsize other parts of its workforce, too — including 200 layoffs mostly impacting engineers in Detroit, and other 300 job cuts at a Georgia IT Innovation Center, which it is also shuttering.
Paramount
In long-awaited cuts just months after completing its $8 billion merger with Skydance, Paramount is going to lay off about 2,000 employees — about 10% of its workforce.
Paramount initiated roughly 1,000 of those layoffs on Wednesday, according to a source familiar with the matter, who spoke on the condition of anonymity. The rest of the cuts will be made at a later date.
Amazon
Amazon will cut about 14,000 corporate jobs as the online retail giant ramps up spending on artificial intelligence.
Amazon said Tuesday that it will cut about 14,000 corporate jobs, close to 4% of its workforce, as the online retail giant ramps up spending on AI while trimming costs elsewhere. A letter to employees said most workers would be given 90 days to look for a new position internally.
CEO Andy Jassy previously said he anticipated generative AI would reduce Amazon’s corporate workforce in the coming years. And he has worked to aggressively cut costs overall since 2021.
UPS
United Parcel Service has disclosed about 48,000 job cuts this year as part of turnaround efforts, which arrive amid wider shifts in the company’s shipping outputs.
In a Tuesday regulatory filing, UPS said it’s cut about 34,000 operational positions — and the company announced another 14,000 role reductions, mostly within management. Combined, that’s much higher than the roughly 20,000 cuts UPS forecast earlier this year.
Target said the cuts were part of wider streamlining efforts — with Chief Operating Officer Michael Fiddelke noting that “too many layers and overlapping work have slowed decisions.” The retailer is also looking to rebuild its customer base. Target reported flat or declining comparable sales in nine of the past eleven quarters.
Nestlé
In mid-October, Nestlé said it would be cutting 16,000 jobs globally — as part of wider cost cutting aimed at reviving its financial performance.
The Swiss food giant said the layoffs would take place over the next two years. The cuts arrive as Nestlé and others face headwinds like rising commodity costs and U.S. imposed tariffs. The company announced price hikes over the summer to offset higher coffee and cocoa costs.
Lufthansa Group
In September, Lufthansa Group said it would shed 4,000 jobs by 2030 — pointing to the adoption of artificial intelligence, digitalization and consolidating work among member airlines.
Most of the lost jobs would be in Germany, and the focus would be on administrative rather than operational roles, the company said. The layoff plans arrived even as the company reported strong demand for air travel and predicted stronger profits in years ahead.
Novo Nordisk
Also in September, Danish pharmaceutical company Novo Nordisk said it would cut 9,000 jobs, about 11% of its workforce.
Novo Nordisk — which makes drugs like Ozempic and Wegovy — said the layoffs were part of wider restructuring as the company works to sell more obesity and diabetes medications amid rising competition.
A spokesperson for ConocoPhillips confirmed the layoffs on Sept. 3, noting that 20% to 25% of the company’s employees and contractors would be impacted worldwide. At the time, ConocoPhillips had a total headcount of about 13,000 — or between 2,600 and 3,250 workers. Most reductions were expected to take place before the end of 2025.
Intel
Intel has moved to shed thousands of jobs — with the struggling chipmaker working to revive its business as it lags behind rivals like Nvidia and Advanced Micro Devices.
In a July memo to employees, CEO Lip-Bu Tan said Intel expected to end the year with 75,000 “core” workers, excluding subsidiaries, through layoffs and attrition. That’s down from 99,500 core employees reported the end of last year. The company previously announced a 15% workforce reduction.
The latest job cuts hit Microsoft’s Xbox video game business and other divisions. The company has cited “organizational changes,” with many executives characterizing the layoffs as part of a push to trim management layers. But the labor reductions also arrive as the company spends heavily on AI.
Procter & Gamble
In June, Procter & Gamble said it would cut up to 7,000 jobs over the next two years, 6% of the company’s global workforce.
The maker of Tide detergent and Pampers diapers said the cuts were part of a wider restructuring — also arriving amid tariff pressures. In July, P&G said it would hike prices on about a quarter of its products due to the newly-imposed import taxes, although it’s since said it expects to take less of a hit than previously anticipated for the 2026 fiscal year.
BANGKOK (AP) — Nvidia CEO Jensen Huang said Friday that the company is discussing a potential new computer chip designed for China with the Trump administration.
Huang was asked about a possible “B30A” semiconductor for artificial intelligence data centers for China while on a visit to Taiwan, where he was meeting Nvidia’s key manufacturing partner, Taiwan Semiconductor Manufacturing Corp., the world’s largest chip maker.
“I’m offering a new product to China for … AI data centers, the follow-on to H20,” Huang said. But he added that “That’s not our decision to make. It’s up to, of course, the United States government. And we’re in dialogue with them, but it’s too soon to know.”
Such chips are graphics processing units, or GPUs, a type of device used to build and update a range of AI systems. But they are less powerful than Nvidia’s top semiconductors today, which cannot be sold to China due to U.S. national security restrictions.
The B30A, based on California-based Nvidia’s specialized Blackwell technology, is reported to operate at about half the speed of Nvidia’s main B300 chips.
Huang praised the the Trump administration for recently approving sales of Nvidia’s H20 chips to China after such business was suspended in April, with the proviso that the company must pay a 15% tax to the U.S. government on those sales. Chip maker Advanced Micro Devices, or AMD, was told to pay the same tax on its sales of its MI380 chips to China.
As part of broader trade talks, Beijing and Washington recently agreed to pull back some non-tariff restrictions. China approved more permits for rare earth magnets to be exported to the U.S., while Washington lifted curbs on chip design software and jet engines. After lobbying by Huang, it also allowed sales of the H20 chips to go through.
Huang did not comment directly on the tax when asked but said Nvidia appreciated being able to sell H20s to China.
He said such sales pose no security risk for the United States. Nvidia is also speaking with Beijing to reassure Chinese authorities that those chips do not pose a “backdoor” security risk, Huang said.
“We have made very clear and put to rest that H20 has no security backdoors. There are no such things. There never has. And so hopefully the response that we’ve given to the Chinese government will be sufficient,” he said.
The Cyberspace Administration of China, the country’s internet watchdog, recently posted a notice on its website referring to alleged “serious security issues” with Nvidia’s computer chips.
It said U.S. experts on AI had said such chips have “mature tracking and location and remote shutdown technologies” and Nvidia had been asked to explain any such risks and provide documentation about the issue.
Huang said Nvidia was surprised by the accusation and was discussing the issue with Beijing.
“As you know, they requested and urged us to secure licenses for the H20s for some time. And I’ve worked quite hard to help them secure the licenses. And so hopefully this will be resolved,” Huang said.
Unconfirmed reports said Chinese authorities were also unhappy over comments by U.S. Commerce Secretary Howard Lutnick suggesting the U.S. was only selling outdated chips to China.
Speaking on CNBC, Lutnick said the U.S. strategy was to keep China reliant on American chip technology.
“We don’t sell them our best stuff,” he said. “Not our second best stuff. Not even our third best, but I think fourth best is where we’ve come out that we’re cool,” he said.
China’s ruling Communist Party has made self-reliance in advanced technology a strategic priority, though it still relies on foreign semiconductor knowhow for much of what it produces.
___
AP Videojournalist Taijing Wu in Taipei contributed to this report.
SAN FRANCISCO (AP) — President Donald Trump wants the U.S. government to own a piece of Intel, less than two weeks after demanding the Silicon Valley pioneer dump the CEO that was hired to turn around the slumping chipmaker. If the goal is realized, the investment would deepen the Trump administration’s involvement in the computer industry as the president ramps up the pressure for more U.S. companies to manufacture products domestically instead of relying on overseas suppliers.
What’s happening?
The Trump administration is in talks to secure a 10% stake in Intel in exchange for converting government grants that were pledged to Intel under President Joe Biden. If the deal is completed, the U.S. government would become one of Intel’s largest shareholders and blur the traditional lines separating the public sector and private sector in a country that remains the world’s largest economy.
Why would Trump do this?
In his second term, Trump has been leveraging his power to reprogram the operations of major computer chip companies. The administration is requiring Nvidia and Advanced Micro Devices, two companies whose chips are helping to power the craze around artificial intelligence, to pay a 15% commission on their sales of chips in China in exchange for export licenses.
Trump’s interest in Intel is also being driven by his desire to boost chip production in the U.S., which has been a focal point of the trade war that he has been waging throughout the world. By lessening the country’s dependence on chips manufactured overseas, the president believes the U.S. will be better positioned to maintain its technological lead on China in the race to create artificial intelligence.
Didn’t Trump want Intel’s CEO to quit?
That’s what the president said August 7 in an unequivocal post calling for Intel CEO Lip-Bu Tan to resign less than five months after the Santa Clara, California, company hired him. The demand was triggered by reports raising national security concerns about Tan’s past investments in Chinese tech companies while he was a venture capitalist. But Trump backed off after Tan professed his allegiance to the U.S. in a public letter to Intel employees and went to the White House to meet with the president, who applauded the Intel CEO for having an “amazing story.”
Why would Intel do a deal?
The company isn’t commenting about the possibility of the U.S. government becoming a major shareholder, but Intel may have little choice because it is currently dealing from a position of weakness. After enjoying decades of growth while its processors powered the personal computer boom, the company fell into a slump after missing the shift to the mobile computing era unleashed by the iPhone’s 2007 debut.
Intel has fallen even farther behind in recent years during an artificial intelligence craze that has been a boon for Nvidia and AMD. The company lost nearly $19 billion last year and another $3.7 billion in the first six months of this year, prompting Tan to undertake a cost-cutting spree. By the end of this year, Tan expects Intel to have about 75,000 workers, a 25% reduction from the end of last year.
Would this deal be unusual?
Although rare, it’s not unprecedented for the U.S. government to become a significant shareholder in a prominent company. One of the most notable instances occurred during the Great Recession in 2008 when the government injected nearly $50 billion into General Motors in return for a roughly 60% stake in the automaker at a time it was on the verge of bankruptcy. The government ended up with a roughly $10 billion loss after it sold its stock in GM.
Would the government run Intel?
U.S. Commerce Secretary Howard Lutnick told CNBC during a Tuesday interview that the government has no intention of meddling in Intel’s business, and will have its hands tied by holding non-voting shares in the company. But some analysts wonder if the Trump administration’s financial ties to Intel might prod more companies looking to curry favor with the president to increase their orders for the company’s chips.
What government grants does Intel receive?
Intel was among the biggest beneficiaries of the Biden administration’s CHIPS and Science Act, but it hasn’t been able to revive its fortunes while falling behind on construction projects spawned by the program.
The company has received about $2.2 billion of the $7.8 billion pledged under the incentives program — money that Lutnick derided as a “giveaway” that would better serve U.S. taxpayers if it’s turned into Intel stock. “We think America should get the benefit of the bargain,” Lutnick told CNBC. “It’s obvious that it’s the right move to make.”
Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD – Get Free Report) have been assigned an average recommendation of “Moderate Buy” from the thirty-two brokerages that are presently covering the firm, Marketbeat Ratings reports. Three investment analysts have rated the stock with a hold recommendation, twenty-eight have issued a buy recommendation and one has given a strong buy recommendation to the company. The average 12-month target price among analysts that have issued ratings on the stock in the last year is $192.79.
A number of research analysts recently weighed in on AMD shares. TD Cowen decreased their target price on shares of Advanced Micro Devices from $210.00 to $185.00 and set a “buy” rating for the company in a research report on Wednesday. Wedbush reaffirmed an “outperform” rating and issued a $200.00 target price on shares of Advanced Micro Devices in a research report on Wednesday, July 31st. Evercore ISI raised their target price on shares of Advanced Micro Devices from $193.00 to $198.00 and gave the company an “outperform” rating in a research report on Wednesday. BNP Paribas raised shares of Advanced Micro Devices to a “strong-buy” rating in a research report on Wednesday, July 31st. Finally, Cantor Fitzgerald reaffirmed an “overweight” rating and issued a $180.00 target price on shares of Advanced Micro Devices in a research report on Wednesday.
Hedge funds and other institutional investors have recently bought and sold shares of the business. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp raised its stake in Advanced Micro Devices by 59.9% in the 2nd quarter. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp now owns 309,561 shares of the semiconductor manufacturer’s stock worth $50,214,000 after purchasing an additional 116,020 shares in the last quarter. Wesbanco Bank Inc. raised its stake in Advanced Micro Devices by 15.7% in the 3rd quarter. Wesbanco Bank Inc. now owns 155,558 shares of the semiconductor manufacturer’s stock worth $25,524,000 after purchasing an additional 21,132 shares in the last quarter. St. Louis Financial Planners Asset Management LLC acquired a new stake in Advanced Micro Devices in the 3rd quarter worth about $2,394,000. Sycomore Asset Management raised its stake in Advanced Micro Devices by 28.6% in the 2nd quarter. Sycomore Asset Management now owns 137,883 shares of the semiconductor manufacturer’s stock worth $21,722,000 after purchasing an additional 30,677 shares in the last quarter. Finally, Custom Index Systems LLC acquired a new stake in Advanced Micro Devices in the 3rd quarter worth about $559,000. Institutional investors and hedge funds own 71.34% of the company’s stock.
Advanced Micro Devices Stock Down 1.5 %
Shares of AMD stock opened at $141.86 on Tuesday. The firm has a fifty day moving average of $154.75 and a 200-day moving average of $155.76. The company has a quick ratio of 2.01, a current ratio of 2.50 and a debt-to-equity ratio of 0.03. Advanced Micro Devices has a 12-month low of $105.91 and a 12-month high of $227.30. The company has a market capitalization of $229.60 billion, a price-to-earnings ratio of 127.80, a P/E/G ratio of 2.03 and a beta of 1.70.
Advanced Micro Devices (NASDAQ:AMD – Get Free Report) last issued its quarterly earnings data on Tuesday, October 29th. The semiconductor manufacturer reported $0.92 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.92. Advanced Micro Devices had a net margin of 7.52% and a return on equity of 6.62%. The company had revenue of $6.82 billion during the quarter, compared to the consensus estimate of $6.71 billion. During the same quarter in the prior year, the firm earned $0.53 earnings per share. The firm’s revenue was up 17.6% compared to the same quarter last year. As a group, equities research analysts predict that Advanced Micro Devices will post 2.56 earnings per share for the current fiscal year.
Advanced Micro Devices, Inc operates as a semiconductor company worldwide. It operates through Data Center, Client, Gaming, and Embedded segments. The company offers x86 microprocessors and graphics processing units (GPUs) as an accelerated processing unit, chipsets, data center, and professional GPUs; and embedded processors, and semi-custom system-on-chip (SoC) products, microprocessor and SoC development services and technology, data processing unites, field programmable gate arrays (FPGA), and adaptive SoC products.
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LONDON (AP) — Chipmaker Intel won a fresh victory Thursday in a long-running battle with European Union competition watchdogs after the bloc’s top court confirmed a lower tribunal’s decision to overturn a billion-euro antitrust penalty.
The EU’s Court of Justice upheld the decision to annul the fine issued more than a decade ago, dismissing an appeal from the European Commission, the 27-nation bloc’s top antitrust enforcer.
The court said it “rejects all of the grounds of appeal raised by the Commission,” according to a press release summarizing the decision.
Intel said in a statement that it’s “pleased with the judgment delivered by the Court of Justice of the European Union today and to finally put this part of the case behind us.”
The case dates back to 2009, when the Commission slapped Intel with a 1.06 billion euro fine ($1.14 billion at current exchange rates) for allegedly using illegal sales tactics to shut out smaller rival AMD. The Commission accused Intel of abusing its dominant position in the global market for x86 microprocessors with a strategy to exclude rivals by using rebates.
Intel scored a surprise win in 2022 when the EU’s General Court overturned the penalty, the decision that the Court of Justice backed on Thursday.
The latest decision is still not the end of the road for the case, because the company is battling a separate 376.4 million-euro ($406.6 million) fine that Brussels imposed last year targeting some Intel sales restrictions that the General Court found were unlawful in its 2022 ruling.
Shares of Intel Corp., based in Santa Clara, California, rose slightly before the opening bell Thursday.
Cisco Systems is planning to lay off 7% of its employees, its second round of job cuts this year, as the company shifts its focus to more rapidly growing areas in technology, such as artificial intelligence and cybersecurity.
The company based in San Jose, California, did not specify the number of jobs it is cutting. It had 84,900 employees as of July 2023. Based on that figure, the number of jobs cut would be about 5,900. In February, Cisco announced it would cut about 4,000 jobs.
The networking equipment maker said in June that it would invest $1 billion in tech startups like Cohere, Mistral and Scale to develop reliable AI products. It recently also announced a partnership with Nvidia to develop infrastructure for AI systems.
Cisco’s layoffs come just two weeks after chipmaker Intel Corp. announced it would cut about 15,000 jobs as it tries to turn its business around to compete with more successful rivals like Nvidia and AMD. Intel’s quarterly earnings report disappointed investors and its stock took a nosedive following the announcement. In contrast, Cisco’s shares were up about 6% after-hours on Wednesday.
In a foray into cybersecurity, Cisco launched a cybersecurity readiness index back in March to help businesses measure their resiliency against attacks.
Cisco Systems Inc. said Wednesday it earned $2.16 billion, or 54 cents per share, in its fiscal fourth quarter that ended on July 27, down 45% from $3.96 billion, or 97 cents per share, in the same period a year ago. Excluding special items, its adjusted earnings were 87 cents per share in the latest quarter.
Revenue fell 10% to $13.64 billion from $15.2 billion.
Analysts, on average, were expecting adjusted earnings of 85 cents per share on revenue of $13.54 billion, according to a poll by FactSet.
For the current quarter, Cisco is forecasting adjusted earnings of 86 cents to 88 cents per share on revenue of $13.65 billion to $13.85 billion. Analysts are expecting earnings of 85 cents per share on revenue of $13.74 billion.
Edward Jones analyst David Heger said Cisco is starting to see demand recover after it slowed over the past few quarters, noting that product orders were up 6% even when excluding those from its recent acquisition of cybersecurity firm Splunk.
He added that “the restructuring will help offset the earnings impact from interest expenses associated with financing the Splunk acquisition and will rationalize combined workforces.”
Tech stocks have a long reputation for providing consistent and significant gains over the long term, proven by the Nasdaq-100 Technology Sector’s 395% rise over the last 10 years.
The industry’s ever-expanding nature is driven by reliable demand for upgrades to various hardware and software products. So, it’s unsurprising that investing mogul Warren Buffett’s holdings company, Berkshire Hathaway, has dedicated more than 40% of its portfolio to tech stocks. Meanwhile, Berkshire’s holdings posted a compound annual gain of nearly 20% between 1965 and 2023.
As a result, it could be worth following suit and making a sizable long-term investment in the high-growth sector. So, here are three stocks to invest $30,000 in right now — $10,000 for each.
1. Advanced Micro Devices
Advanced Micro Devices(NASDAQ: AMD) business has exploded over the last decade, taking on a leading role in the chip market.
A decade ago, the company was on the brink of bankruptcy, bleeding money alongside mounting debt. Then, in 2014, Lisa Su became AMD’s CEO, triggering one of the most impressive turnarounds in the tech market’s history.
The launch of its Ryzen line of central processing units (CPUs) in 2017 has been a major growth catalyst, with AMD’s CPU market share rising from 18% in the first quarter of 2017 to 33% in 2024. The company has gradually chipped away Intel‘s share, which fell from 82% to 64% in the same period.
AMD Chart
Shares in AMD have soared 3,500% over the last 10 years. As a result, an investment of $10,000 in AMD’s stock in 2014 would be worth more than $357 billion today.
Of course, past growth doesn’t always indicate what’s to come. However, the company has an exciting outlook that could deliver major gains over the next 10 years. AMD is investing heavily in artificial intelligence (AI), launching new AI graphics processing units (GPUs) this year and investing in AI personal computers.
The AI market hit nearly $200 billion last year and is projected to reach nearly $2 trillion by 2030. Alongside positions in other areas of tech, such as cloud computing, video games, and consumer PCs, AMD will likely continue benefiting from the tailwinds of tech for years.
Consequently, an investment of $10,000 in AMD’s stock over the next decade could deliver significant gains.
2. Amazon
It’s impossible to deny Amazon‘s (NASDAQ: AMZN) potent role in tech. Thanks to its popular e-commerce site, the company has built up immense brand loyalty worldwide. Amazon’s retail site is available in over 20 countries and ships to more than 100 nations.
The success of Amazon’s e-commerce business has seen annual revenue climb 546% since 2014, with operating income skyrocketing by more than 20,000%.
Amazon’s meteoric rise is primarily owed to its lucrative Prime membership. Its subscription-based model bundles multiple services, including free expedited shipping on its retail site, video streaming, music, gaming, and more. Including multiple services makes consumers less likely to unsubscribe, leading to a global subscriber count above 230 million.
AMZN Chart
Shares in Amazon have risen 926% since 2014, meaning an investment of $10,000 back then would be worth over $102,000 today. And the company could potentially beat that growth over the next 10 years.
In addition to consistent retail growth, Amazon is rapidly expanding in AI and cloud computing. On April 25, the company announced plans to invest $11 billion to build data centers in Indiana to grow Amazon Web Services (AWS).
The company is on a promising growth path, and if you have the means, it could be worth an investment of $10,000 this month. However, a smaller investment is still worth considering.
3. Apple
Apple(NASDAQ: AAPL) is easily one of the most successful companies in tech history. Its market cap of $2.6 billion makes it the world’s second-most-valuable company (only after Microsoft). Meanwhile, Apple’s vast and loyal user base has allowed it to achieve leading market shares in multiple product categories.
However, the company has stumbled over the last year. Macroeconomic headwinds led to repeated quarters of revenue declines in 2023. Apple’s Q1 2024 seemed to break the streak, with revenue rising 2% year over year.
Meanwhile, the tech giant’s free cash flow hit $107 billion, significantly more than Microsoft, Amazon, or Alphabet. The considerable difference could suggest Apple is best equipped to keep investing in its business and come back strong in the coming years.
AAPL Chart
Apple’s stock has increased by 738% over the last decade. Consequently, a $10,000 investment in its shares 10 years ago would be worth nearly $84,000 today.
Moreover, like AMD and Amazon, Apple is taking on AI head-on. Over the last year, the company has gradually added AI-driven features across its product range, with plans to overhaul its MacBook lineup to focus on AI. The company also recently acquired French AI company Datakalab, which specializes in on-device processing.
Apple’s dominating role in tech and exciting outlook could make it worth investing $10,000 in its stock, with plans to hold for at least a decade.
Should you invest $1,000 in Advanced Micro Devices right now?
Before you buy stock in Advanced Micro Devices, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Advanced Micro Devices wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $537,557!*
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. TheStock Advisorservice has more than quadrupled the return of S&P 500 since 2002*.
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Apple, and Microsoft. The Motley Fool recommends Intel and recommends the following options: long January 2025 $45 calls on Intel, long January 2026 $395 calls on Microsoft, short January 2026 $405 calls on Microsoft, and short May 2024 $47 calls on Intel. The Motley Fool has a disclosure policy.
History is proof the U.S. stock market always climbs to new highs given enough time. But the stocks that lead the charge higher aren’t always the same. To help find the new leaders, Wall Street often groups them together to separate them from the rest of the market. For example, CNBC financial analyst Jim Cramer coined the FAANG acronym in 2017 to describe five of the largest technology companies at the time:
Facebook, which now trades as Meta Platforms
Apple
Amazon
Netflix
Google, which now trades as Alphabet
That leadership shifted in 2023 when a group of seven stocks drove the S&P 500 index to an annual return of twice its historical average. Bank of America analyst Michael Hartnett dubbed those stocks the “Magnificent Seven,” and they include:
Meta Platforms
Apple
Amazon
Alphabet
Microsoft
Nvidia (NASDAQ: NVDA)
Tesla
Image source: Getty Images.
It’s time for the “AI Five,” according to one analyst
With Tesla stock sinking 22% so far this year, Jim Cramer thinks it should be booted from the Magnificent Seven entirely. The company is facing sluggish electric vehicle sales in 2024, which could keep a lid on its stock price and weaken the power of the Magnificent Seven as a group.
It prompted one analyst — Glen Kacher from Light Street Capital — to rethink the stock market’s leadership altogether. He thinks investors should be focused on artificial intelligence (AI), so he has identified a new group of stocks and called it the “AI Five.” It includes:
Nvidia
Microsoft
Taiwan Semiconductor Manufacturing
Advanced Micro Devices(NASDAQ: AMD)
Broadcom (NASDAQ: AVGO)
Each company has a hand in developing the hardware and software necessary to bring AI to life. Here are two AI Five stocks investors should consider buying right now.
1. Advanced Micro Devices (AMD)
Advanced Micro Devices might be one of the best semiconductor stocks to own in 2024. Its new MI300 data center chips are designed to process AI workloads, and they are shaping up to be the main rivals to Nvidia’s industry-leading H100.
The MI300 comes in two configurations. The MI300X is a pure graphics processor (GPU) like the H100, whereas the MI300A combines GPU and central processing unit (CPU) hardware to create the world’s first accelerated processing unit (APU) for data centers. The MI300A will power the El Capitan supercomputer at the Lawrence Livermore National Laboratory, and it’s expected to be the most powerful in the world when it comes online later this year.
Some of the world’s largest data center operators, companies like Meta Platforms, Microsoft, and Oracle, are also racing to get their hands on MI300 chips. They have relied almost entirely on Nvidia up until now, but supply constraints are pushing them to look for viable alternatives, and AMD is ready.
In the fourth quarter of 2023, AMD issued a bullish forecast for the MI300. The company originally expected the GPU to pull in $2 billion worth of sales in 2024, but it raised that number to $3.5 billion, much to the delight of investors.
AI is also coming to personal computers, where users can process AI on-device for a faster experience, which reduces the reliance on external data centers. AMD’s Ryzen AI series of neural processing units (NPUs) already power more than 50 notebook designs, and the company is working with Microsoft to develop a new version of Windows that will run AI workloads more efficiently.
Millions of personal computers have already shipped with Ryzen AI chips, giving AMD a 90% market share in the segment. Ryzen AI drove the company’s Client segment revenue to $1.5 billion in the fourth quarter, representing a whopping 62% year-over-year increase. AMD expects that momentum to continue, especially because it’s preparing to launch a next-generation chip that could be more than three times faster.
Simply put, 2024 is set to be incredibly exciting for AMD, and the company could be on the cusp of a multiyear growth cycle on the back of its new hardware slate.
2. Broadcom
As far as being an AI stock, Broadcom lives in the shadow of glamorous names like AMD and Nvidia. However, Broadcom is developing AI on multiple fronts, and its stock has delivered a 343% return over the last five years, so it definitely warrants some attention. Despite being founded in 1991, the company really took a leap forward when it merged with semiconductor giant Avago Technologies in 2016.
Broadcom is now a conglomerate that not only includes Avago but also several acquired companies like semiconductor device supplier CA Technologies, cybersecurity giant Symantec, and cloud software developer VMware. Broadcom spent a whopping $98.6 billion on those three acquisitions since 2018.
VMware, which had a price tag of $69 billion alone, is an increasingly important company in the context of the AI boom. Its software allows users to run virtual machines to distribute cloud infrastructure more efficiently. For example, one user on one server might only utilize 10% of its capacity, but virtual machines allow multiple users to plug into that server so it operates at capacity. Considering so many companies are racing to access AI data center infrastructure, optimization is one way they can squeeze the most value out of what they have.
Broadcom itself is also considered a leader in networking and server connectivity solutions for the data center. It developed a high-bandwidth switch called Tomahawk 5, which is designed to accelerate AI and machine learning workloads. A switch regulates how fast data travels from one point to another, and considering developers are feeding billions of data points to powerful GPUs to train AI models, it has become an important piece of the infrastructure puzzle.
Broadcom generated a record-high $35.8 billion in revenue during fiscal 2023 (ended Oct. 29), which was an increase of 8% compared to fiscal 2022. However, Broadcom’s revenue is expected to grow by 40% in fiscal 2024 to $50 billion, thanks to the inclusion of VMware’s financial results for the first time.
Based on Broadcom’s $42.25 in non-GAAP (adjusted) earnings per share in fiscal 2023 and its current stock price of $1,226.55, it trades at a price-to-earnings (P/E) ratio of 29.1. That’s a 9% discount to the 32.1 P/E of the Nasdaq-100 index, which implies Broadcom is still cheap relative to its peers in the tech sector.
Given the company’s growing presence in AI through acquisitions and in-house development, Broadcom looks like a great AI Five stock to buy now and hold — especially at this price.
Where to invest $1,000 right now
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They just revealed what they believe are the 10 best stocks for investors to buy right now… and Advanced Micro Devices made the list — but there are 9 other stocks you may be overlooking.
Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Bank of America is an advertising partner of The Ascent, a Motley Fool company. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Apple, Bank of America, Meta Platforms, Microsoft, Netflix, Nvidia, Oracle, Taiwan Semiconductor Manufacturing, and Tesla. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
The artificial intelligence (AI) gravy train has given several stocks a big boost over the past year, notably Nvidia, which has capitalized on the booming demand for AI chips and enjoyed an eye-popping jump in its revenue and earnings. Shares of Nvidia have shot up a terrific 215% in the past year.
As the chart shows, the stock’s surge is justified, considering how rapidly its revenue and earnings have increased in recent quarters.
NVDA Revenue (Quarterly) Chart
However, the big jump in price means that shares of Nvidia are not in value territory anymore. Nvidia sports a stunning price-to-sales ratio of 37. It also trades at a lofty 90 times trailing earnings, which is higher than its five-year average of 79.
Of course, Nvidia can justify these expensive multiples by sustaining its solid growth in the future, but there are cheaper options to capitalize on the AI wave as well. Super Micro Computer(NASDAQ: SMCI) and Qualcomm(NASDAQ: QCOM) are two attractively valued stocks that you may consider buying right now.
1. Super Micro Computer
Super Micro Computer is already in red-hot form on the stock market, surging a whopping 587% in the past year and crushing Nvidia’s returns by a huge margin. However, shares of the company that’s known for making AI server and storage solutions continue to trade at very attractive levels despite this huge jump.
You can buy Super Micro stock for just 3.3 times sales right now. Buying the stock at this valuation looks like a no-brainer, not only because it is way cheaper than Nvidia, but also because it is growing at a tremendous pace.
Super Micro released its fiscal 2024 second-quarter results (for the three months ended Dec. 31) on Jan. 29. The company’s revenue more than doubled from the year-ago period to $3.66 billion last quarter. Its non-GAAP (generally accepted accounting principles) net income shot up from $3.26 per share in the year-ago period to $5.59 per share.
The company’s impressive revenue and earnings growth was driven by the rapid deployment of AI servers. Super Micro has optimized its server solutions according to the requirements of AI servers, helping data center operators reduce electricity and cooling costs. Its server rack solutions are used for deploying AI chips from multiple vendors such as Nvidia, Intel, and Advanced Micro Devices.
The good part is that the company is witnessing terrific demand for its offerings, which is why it has been focused on enhancing its production capacity. Charles Liang, CEO of Super Micro, pointed out on the company’s latest earnings conference call:
Today, our production utilization rate is about 65% across our USA, Netherlands, and Taiwan facilities, and they are quickly filling. To address this immediate capacity challenge, we are adding two new production facilities and warehouses near our Silicon Valley HQ, which will be operating in a few months. The new Malaysia facility will focus on expanding our building blocks with lower costs and increased volume, while other new sites will support our annual revenue capacity above $25 billion.
It won’t be surprising to see Super Micro eventually hitting $25 billion in annual revenue thanks to its capacity expansion moves, as demand for AI servers is expected to grow fivefold between 2023 and 2027, generating an annual revenue of $150 billion at the end of the forecast period.
More importantly, Super Micro is already benefiting from this solid growth in AI server demand, as its latest guidance update tells us. The company now expects to end fiscal 2024 with revenue of $14.5 billion at the midpoint of its guidance range, which would be a 106% jump over the prior year. Super Micro was earlier expecting fiscal 2024 revenue to land at $10.5 billion.
Assuming Super Micro does hit its annual revenue guidance and maintains its sales multiple, its market capitalization could increase to $48 billion. That would be a 50% jump from current levels, which is why investors looking to add an AI stock to their portfolios should consider acting quickly before Super Micro heads higher.
2. Qualcomm
Share of Qualcomm have underperformed the broader market over the past year with gains of just 5%, which is not surprising, considering the mobile chipmaker’s tepid financial performance.
QCOM Revenue (TTM) Chart
Qualcomm has been weighed down by poor smartphone sales in the past year. According to market research firm IDC, smartphone shipments were down 3.2% in 2023 to 1.17 billion units. Qualcomm gets more than two-thirds of its total revenue from selling chipsets used in smartphones, so the weakness in this segment was bound to have a negative impact on the company’s performance.
The good news for Qualcomm is that the smartphone market is set for a solid turnaround from 2024. The turnaround is already underway, with smartphone shipments rising 8.5% in the fourth quarter of 2023, outpacing the 7.3% growth that analysts were looking for.
Morgan Stanley is anticipating the global smartphone market to grow by 4% in 2024 and 4.4% next year. However, the pace of growth in Q4 2023 points toward better smartphone sales growth this year, with AI expected to play a central role in driving a stronger performance.
Counterpoint Research estimates that shipments of generative AI-powered smartphones could hit 100 million units in 2024. Annual shipments of AI-enabled smartphones are expected to hit 522 million units in 2027, clocking an annual growth rate of 83%.
In all, a total of 1 billion AI-powered smartphones are expected to be shipped over the next four years. Qualcomm is already on its way to capitalizing on this opportunity, with its Snapdragon 8 Gen 3 chip powering AI features on Samsung‘s latest Galaxy S24 Ultra smartphone. Qualcomm’s management pointed out on the latest earnings conference call that Samsung’s S24 family of devices includes “on-device AI features such as live translate interpreter, chat assist, nightography, and more.”
Additionally, Qualcomm has “extended a multi-year agreement with Samsung relating to Snapdragon platforms for flagship Galaxy smartphone launches starting in 2024.” This should pave the way for Qualcomm to take advantage of the nascent AI-enabled smartphone market in the long run, considering that Samsung is the world’s second-largest smartphone manufacturer.
It is worth noting that analysts have already been raising Qualcomm’s revenue growth estimates of late.
QCOM Revenue Estimates for Current Fiscal Year Chart
AI could give the company an additional lift and help Qualcomm outpace analysts’ expectations in the future. But even if the company hits $44 billion in annual revenue over the next couple of years and maintains its current sales multiple of 5, its market capitalization could jump to $220 billion. That would be a 39% increase over current levels.
However, don’t be surprised to see Qualcomm stock delivering stronger gains on the back of a faster jump in its revenue. Moreover, the market may reward it with a higher sales multiple based on its AI prospects, which is why savvy investors would do well to buy the stock now.
Should you invest $1,000 in Super Micro Computer right now?
Before you buy stock in Super Micro Computer, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Super Micro Computer wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Nvidia, and Qualcomm. The Motley Fool recommends Intel and Super Micro Computer and recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, and short February 2024 $47 calls on Intel. The Motley Fool has a disclosure policy.
The past year has been an incredible one for Advanced Micro Devices(NASDAQ: AMD) investors as shares of the chipmaker have shot up an impressive 130%, outperforming the PHLX Semiconductor Sector index’s gains of 57% by a huge margin. Investors have been buying the stock hand over fist in anticipation of a rapid acceleration in the company’s growth thanks to artificial intelligence (AI)-driven chip demand.
Even Wall Street has been upbeat about AMD’s prospects. The stock received three upgrades earlier this month from Barclays, Susquehanna Financial Group, and KeyBanc Capital Markets. Barclays upped its price target on AMD to $200 from the earlier estimate of $120, while KeyBanc and Susquehanna increased their price targets to $195 and $170, respectively. AMD closed Jan. 23 at $168.
Analysts aren’t always right, but these price targets suggest that AMD stock is set for healthy gains. However, an analyst at Northland Capital Markets think otherwise. The investment banking firm recently downgraded AMD stock from “outperform” to “market perform,” pointing out that the company’s AI business may not grow as fast as investors are expecting.
Northland also said that the big jump in AMD over the past year means that its share price already reflects the potential AI-driven revenue gains that the company could log through 2027. Does this mean AMD stock is priced for perfection right now and it may struggle to sustain its red-hot rally over the next three years?
AMD stock is expensive, but that’s half the story
AMD is trading at a whopping 1,500 times trailing earnings. That is a result of the stock’s terrific surge in the past year and the fact that its earnings have declined at the same time.
AMD Chart
The decline in AMD’s earnings can be attributed to weakness in the personal computer (PC) market. PC sales were down almost 15% in 2023, according to Gartner.
More specifically, AMD’s revenue from sales of central processing units (CPUs) deployed in desktops and laptops fell nearly 40% year over year in the first nine months of 2023, to $3.2 billion. The segment swung to an operating loss of $101 million during this period from an operating profit of $3.1 billion in the same period a year ago.
As a result, AMD’s total operating income was down to just $59 million in the first three quarters of 2023, from $1.4 billion in the year-ago period. The company is expected to report $2.65 per share in earnings for 2023, down from $3.50 per share in 2022. However, as the following chart indicates, AMD’s earnings are set to grow significantly from this year.
AMD EPS Estimates for Current Fiscal Year Chart
This solid uptick in AMD’s earnings is the reason why AMD’s forward earnings multiples are way cheaper than the trailing ones.
AMD PE Ratio Chart
There are two reasons why consensus estimates are projecting such a big turnaround at AMD in 2024.
First, the PC market is set to grow by 8% in 2024, according to Canalys. More importantly, the market research firm expects PC shipments to grow by 10% annually in 2025, 2026, and 2027. So, the biggest factor that was weighing on AMD’s bottom line should be a thing of the past this year, and beyond.
The good part is that the potential turnaround in the PC market is already showing up in AMD’s financials, as its client segment revenue was up an impressive 42% year over year in the third quarter. It also reported an operating profit of $140 million as compared to an operating loss of $26 million in the year-ago period.
Second, AMD’s data center business seems set for robust gains. The segment’s revenue was down 4% in the first nine months of 2023 to $4.2 billion. At this run rate, AMD may have finished 2023 with $5.6 billion in data center revenue. However, analysts are forecasting a big jump in sales of AMD’s AI-focused accelerators this year, which could supercharge the company’s data center business.
While AMD itself is forecasting $2 billion revenue in 2024 from its AI GPUs (graphics processing units), supply chain checks by KeyBanc indicate that it may generate $8 billion revenue by selling its newly launched MI300 family of AI chips. It is worth noting that AMD’s data center revenue in 2023 consisted almost entirely of sales of its server CPUs .
So, the $8 billion revenue that AMD is anticipated to generate from sales of its AI chips is going to be almost entirely incremental for its data center business.
And AMD is expected to gain more share in the AI chip market, and that could lead to solid long-term growth for the company.
AI could give AMD a big boost over the next three years
Northland Capital Markets analyst Gus Richard estimates that AMD could corner a 13% share of the AI chip market in 2027, generating an estimated $16 billion in revenue. That suggests AMD’s AI revenue is expected to double each year from 2024, based on the company’s estimate that it will sell $2 billion worth of AI chips this year.
However, other estimates — such as the one from KeyBanc — indicate that AMD could reach the $16 billion landmark at a faster pace.
But even if we use the relatively conservative forecast from Northland, which expects AMD’s overall revenue to increase to $45 billion in 2027, investors can expect the stock to deliver more upside over the next three years. AMD has a five-year average sales multiple of 8, which could send its market cap to $360 billion in 2027 based on the $45 billion revenue estimate. That would be a 32% jump from current levels.
However, don’t be surprised to see AMD delivering more upside as the market may reward it with a higher sales multiple considering that companies benefiting from AI tend to get a premium valuation from Wall Street.
Should you invest $1,000 in Advanced Micro Devices right now?
Before you buy stock in Advanced Micro Devices, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Advanced Micro Devices wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
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Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices. The Motley Fool recommends Barclays Plc and Gartner. The Motley Fool has a disclosure policy.
The year 2023 was quite impressive for the U.S. stock market, with the S&P 500 and the Nasdaq Composite indexes posting returns of 24% and 43%, respectively. A major part of this bull rally can be attributed to the strong performance of artificial intelligence (AI) and other related stocks.
AI is far more than a passing trend and marks a transformational technology in today’s world. Its relevance as a major investment theme persists in 2024.
Against this backdrop, here’s why high-quality AI-powered stocks such as Nvidia (NASDAQ: NVDA), Super Micro Computer (NASDAQ: SMCI), Snowflake (NYSE: SNOW), Palantir Technologies (NYSE: PLTR), and UiPath (NYSE: PATH) can prove to be smart buys in 2024.
Nvidia
An undisputed leader in the AI market, Nvidia’s GPUs, CPUs, networking technologies, and software offerings are being used extensively by data centers to upgrade their infrastructure for AI workloads.
CEO Jensen Huang expects data centers to spend nearly $1 trillion in capital expenditures for transitioning from CPU-based infrastructure to GPU-based infrastructure, necessary for high-performance computing, machine learning, and AI workloads. Nvidia seems positioned to capitalize on this opportunity, with cutting-edge AI chips and a Compute Unified Device Architecture (CUDA) software stack used by nearly 4 million developers to optimally program these chips. The company also accelerated the pace of new data center chip architecture releases from every two years to annually.
After a lackluster performance in the past few quarters, Nvidia is seeing strength in the gaming business driven by the availability of Nvidia RTX retracing and AI technologies at low price points. The increasing prevalence of esports is also a major growth driver for the company’s gaming chips.
Considering these tailwinds, despite trading at 34 times trailing 12-month sales, Nvidia’s strong position in the AI market makes it a potentially wise investment choice in 2024.
Super Micro Computer
Super Micro Computer, excelling in high-end server and storage systems, benefited dramatically from the increasing demand for its AI platforms, especially the large language model (LLM)-optimized HGX-H100 solutions (which contain multiple H100 chips interconnected with cutting-edge networking technologies). Many hyperscalers and cloud service providers also demand direct-attached cold-plate liquid-cooling solutions with the server systems to address the high power costs and thermal challenges associated with deploying power-hungry AI workloads. The company’s modular, energy-efficient, and scalable solutions helped set it apart from competitors focused on mass-producing servers.
Supermicro’s collaborations with major chip players such as Nvidia, Advanced Micro Devices, and Intel further ensured early access to advanced AI chips, giving the company a distinct competitive advantage. By sending solutions earlier to customers, Super Micro helps customers to make decisions earlier — translating into incremental revenue opportunities for the company. All these positives make Supermicro a compelling pick for 2024.
Snowflake
Snowflake, a cloud-native data platform, helps multiple organizations such as Salesforce, ServiceNow,Workday, and SAP manage, store, and analyze vast amounts of structured and unstructured data from a wide range of diverse sources and formats. This capability plays a major role in giving organizations a comprehensive view of the data landscape and running complex AI algorithms and models.
A key advantage for Snowflake is its ability to process unstructured and streaming data. Over 30% of its customer base is working with unstructured data, leading to a 17 times increase in unstructured data consumption year over year in October 2023. A new data streaming feature, Dynamic Tables, already attracted 1,500 customers, with more expected to adopt it in the coming months. Furthermore, Snowflake’s data marketplace, a major part of its data cloud platform, allows organizations to access and share data sets, thereby enriching their own data with additional insights and context. This further improves the outcomes of their AI models. The data-sharing feature created a strong network effect and a sticky customer base — which are major positives in the current uncertain economic environment.
Palantir Technologies
Shares of data analytics company Palantir surged an impressive 167% in 2023, a marked recovery from the 65% decline in 2022. The company’s platform is well known for its exceptional ability to analyze large data sets for government and commercial clients utilizing advanced AI and machine learning algorithms.
Recently, Palantir launched an innovative Artificial Intelligence Platform (AIP) that combines its core machine learning capabilities with the power of advanced large language models, allowing customers to improve productivity and operational efficiency. The company also launched an innovative go-to-market strategy called AIP Bootcamp, which allows clients to test its platforms with real workflows in five or fewer days. A significant change from the traditional pilot strategy, AIP Bootcamps allow for faster negotiation and customer wins.
Palantir is already positive according to generally accepted accounting principles (GAAP), a solid strength for a high-growth company. This is why the company seems to be a smart buy now.
UiPath
Leading robotic process automation player UiPath helps businesses automate routine and mundane tasks, thereby helping them improve enterprise productivity and cost efficiencies. The company is also leveraging AI technologies to drive automation for even more complex and nuanced tasks.
UiPath’s focus on industry verticalization, or developing tailored automation solutions for specific industries, has been a key competitive strength. The company invests in playbooks, marketing events, and enablement programs to help its support teams better understand the unique needs and challenges of various industries, helping them deliver targeted solutions to their customers. All this has translated into a rapid expansion in the customer base and a successful cross-selling strategy. With a portfolio of innovative offerings and a robust marketing strategy, UiPath may prove to be an intriguing investment for 2024.
Should you invest $1,000 in Nvidia right now?
Before you buy stock in Nvidia, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
Manali Bhade has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Nvidia, Palantir Technologies, Salesforce, ServiceNow, Snowflake, UiPath, and Workday. The Motley Fool recommends Intel and Super Micro Computer and recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, and short February 2024 $47 calls on Intel. The Motley Fool has a disclosure policy.
Shares of semiconductor company Advanced Micro Devices (NASDAQ: AMD) were up 8.2% as of 10:45 a.m. ET Tuesday — and it’s no great secret why.
On Tuesday morning, not one, not two, but three analysts raised their price targets on AMD stock, citing decent performance in graphics processing units and a big boost to business as the artificial intelligence (AI) trend enters its “second wave.”
Price targets nearly double
AMD’s biggest vote of confidence came from analysts at British bank Barclays, who nearly doubled their share price target on the semiconductor stock from $120 to $200. Barclays named AMD as a beneficiary of this second wave of AI interest as more customers jump on the bandwagon and begin looking for more suppliers of AI chips.
In AMD’s case, that mainly refers to its MI300X line of accelerator chips. Analysts at KeyBank were just behind Barclays in their enthusiasm for AI, setting a $195 price target and predicting we’ll see a “meaningful inflection in demand” for AMD’s new AI chip this year, according to TheFly.com. And as MI300 sales ramp up, KeyBank forecasts $8 billion in GPU sales for AMD this year.
Rounding out the list, Susquehanna Research reports that GPUs are selling “around MSRP,” which suggests at least decent demand for GPUs used to facilitate AI functions.
Caveats and provisos
Not all the news is great. In its report, Susquehanna injected notes of caution regarding weaker segments of the semiconductor universe. Buyers of automotive and industrial semiconductor chips are still flooded with inventory, it seems, and are engaged in a period of “destocking” as they work through their inventories. That won’t be great for pricing. Demand for PC chips is still “bouncing along the bottom,” too, it asserts. Cellphone chip demand seems more or less flat, with weakness evident in China — primarily affecting Apple‘s suppliers.
All this notwithstanding, it’s the AI story that is resonating with investors on Tuesday. If AMD books $8 billion in GPU sales this year as KeyBank predicts, that would be a huge boost to its business, which booked barely $22 billion in revenues over the last 12 months across all of its product lines. While AMD stock looks admittedly pricey at more than 1,100 times trailing earnings right now, a big boom in AI chip demand, undergirded by strong pricing in these chips, has analysts forecasting AMD will earn enough this year to drive its price-to-earnings ratio down to just 39.
AMD investors are betting that price will look cheap a year from now — and are buying the rumor in hopes of profiting from the news.
Should you invest $1,000 in Advanced Micro Devices right now?
Before you buy stock in Advanced Micro Devices, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Advanced Micro Devices wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices and Apple. The Motley Fool recommends Barclays Plc. The Motley Fool has a disclosure policy.
Advanced Micro Devices (NASDAQ: AMD) has become one of the more notable comeback stories in recent years. Left for dead in the middle of the last decade, it has become a leader in CPU, GPU, and embedded chips under the leadership of CEO Lisa Su.
With it making advancements in the AI field, AMD stock is on an upward trajectory, rising 127% in 2023. However, determining whether the semiconductor stock can mint millionaires from here requires a closer look.
The state of AMD
AMD stock has benefited from a tremendous level of success under Su and has the potential to go much higher. When Su took over in 2014, she limited the company’s focus to CPUs and GPUs. Since product development timelines in the semiconductor industry take at least three years, Su’s vision took time to bear fruit.
Nonetheless, in that time, the company’s CPUs surpassed the performance of those of longtime rival Intel. In the GPU field, it won contracts to power Sony‘s PlayStation and Microsoft‘s Xbox. Additionally, its GPUs have helped it gain traction on Nvidia in some cases, and helped its data center technologies take market share from Intel.
Moreover, just when it looked like Nvidia would dominate AI chips, AMD released its Instinct MI300A accelerator chip and the MI300X GPU, which AMD claims is a faster chip than Nvidia’s H100.
These new offerings have stoked investor optimism, taking the semiconductor stock to 52-week highs in late December. Over the last year, AMD stock has more than doubled.
Why minting millionaires from here may be a struggle
Unfortunately, turning small investors into millionaires would take a level of growth beyond the imaginations of many. With AMD’s recovery, its market cap has reached almost $220 billion, taking it into mega-cap status.
If an investor bought $10,000 worth of AMD stock today, the market cap would have to reach nearly $22 trillion for that position to become $1 million. Currently, the stock with the highest market cap, Apple, has a market cap of around $3 trillion, less than one-seventh that amount.
Also, AMD’s financials would have to make considerable improvements to send the stock into hyperdrive. In the third quarter of 2023, its revenue of $5.8 billion grew 4% year over year, compared with a 9% yearly decline for revenue in the first three quarters of the year.
AMD’s revenue growth should improve. Still, even if it can find a way to match Nvidia’s 206% revenue growth in its third quarter of fiscal 2023 (ended Oct. 29), it will likely not make recent investors with only a few thousand to invest into millionaires .
Millionaire status is more reachable for large investors who bought the stock on Oct. 8, 2014, the day Su became AMD’s CEO. If you’d started a $10,000 position then, it would be worth approximately $414,000 today, meaning if the stock jumps another 127% in 2024, those investors’ original investment would be close to $1 million.
AMD as a millionaire maker
Although AMD can probably help an investor make money on the road to becoming a millionaire, it has probably grown too large to accomplish that feat on its own for small investors. As a mega-cap stock, it is unlikely to achieve the 100-fold or more increases needed to turn $10,000 into $1 million.
Nonetheless, AMD’s performance has far exceeded that of the indexes during Su’s time at the company. Given past successes, that trend is likely to continue. Hence, even if one cannot become a millionaire, an investor could become significantly richer with a long-term investment in AMD stock.
Should you invest $1,000 in Advanced Micro Devices right now?
Before you buy stock in Advanced Micro Devices, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Advanced Micro Devices wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
Will Healy has positions in Advanced Micro Devices and Intel. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Microsoft, and Nvidia. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, and short February 2024 $47 calls on Intel. The Motley Fool has a disclosure policy.
Advanced Micro Devices is on a roll this week, with its shares marching higher since the chip maker revealed ambitious plans to push into artificial intelligence. Investors looking to dive in best be warned: the stock now looks more expensive than Nvidia.
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