Latest news with #AdvancedMicroDevices
Yahoo
7 hours ago
- Business
- Yahoo
The Smartest Growth Stock to Buy With $5,000 Right Now
This stock offers four businesses in one. Each of these businesses is in either a prosperity or recovery mode. A rising revenue growth rate coupled with a low valuation should bode well for investors. 10 stocks we like better than Advanced Micro Devices › Investors tend to gravitate to growth stocks they perceive as smart. Indeed, the idea of a smart stock can depend heavily on one's point of view. Still, most would agree that buying a wonderful company at a fair price, as Warren Buffett advises, would qualify a stock as such a pick. This may be especially true of an investor who has $5,000 to put in a growth stock, as even that relatively modest sum could grow significantly in size with the right investment. One stock that arguably fits those criteria is Advanced Micro Devices (NASDAQ: AMD). Since Lisa Su took over as CEO in 2014, the company has recovered from the brink of bankruptcy and become a top semiconductor stock. Amid the artificial intelligence (AI) revolution and the soaring demand for chips, the company and its shareholders should prosper; here's why. AMD has evolved since its founding in 1969, but Su turned it into a company focused primarily on CPUs and GPUs. To that end, AMD is now four chip-related enterprises under one umbrella. The largest segment is its data center business, which accounted for half of the company's revenue in the first quarter of 2025. It designs CPUs and GPUs to handle workloads and create its AI accelerators, which help power workloads in that fast-growing segment. That led to a 57% year-over-year revenue growth rate in Q1. Approximately 30% of the company's revenue comes from the client segment. It designs chips for desktops, laptops, and handheld computers. In Q1, revenue rose 68% annually as customers took to its Zen 5 Ryzen processors and other offerings. Its embedded segment generates about 11% of the company's revenue. It designs chips that perform specific functions within larger systems. The remaining 9% of AMD's revenue is from its gaming segment. It makes CPUs and GPUs designed for gaming purposes, and its chips power Sony's PlayStation and the Microsoft Xbox. The company has benefited from rapid growth in the data center and client businesses amid soaring demand for such chips. That is how they became more than 80% of AMD's revenue. Unfortunately, the stock suffered as its embedded and gaming businesses languished in down cycles. Fortunately, embedded revenue declined by only 3% in Q1 as some signs of rising demand have finally emerged. Gaming suffered as previously locked-down gamers resumed offline activities. Also, Sony and Microsoft have not updated their consoles in a few years, leaving consumers with fewer reasons to buy. Nonetheless, gaming's 30% revenue drop in Q1 is less severe than in previous years, a sign that its decline may finally come to an end soon. Thanks to signs of improvement from its lagging sectors, AMD's revenue growth is on the rise. In the first quarter of 2025, revenue of $7.4 billion grew 36% year over year. In comparison, revenue growth in Q1 2024 was only 2%, showing a vast improvement over just one year. Moreover, costs and expenses grew at a slower pace than revenue. Consequently, AMD's quarterly net income of $709 million was far above the $123 million it earned in the year-ago quarter. Indeed, looking forward to Q2, AMD may not quite match its Q1 revenue growth rate. The company forecasts Q2 revenue to be between $7.1 billion and $7.7 billion. That would amount to 27% year-over-year revenue growth at the midpoint. However, the increased likelihood that the stock has bottomed should bode well for investors who buy now. AMD is down by approximately 50% from its all-time high in early 2024 but has surged 50% since bottoming in early April. And despite that considerable short-term gain, its valuation remains attractive. AMD sells at a P/E ratio of 85 thanks to lower earnings in past quarters. Still, with its earnings recovery more recently, its forward P/E ratio is 29. Considering its rapid revenue and earnings growth, investors may view that valuation as a bargain. Ultimately, AMD's business and its burgeoning recovery appear to make it the smartest growth stock to buy at this time. For one, the 50% discount from the all-time high and the low forward P/E ratio make the stock attractively priced for buyers. Aside from those attributes, the bad news seems to be abating. The data center and client segments have benefited from strong growth. Additionally, the embedded segment appears poised to return to a growth mode, and despite the significant declines in the gaming segments, conditions may finally be on track to get better. Thanks to such improvements, AMD's overall revenue growth rate has increased. As that rising revenue leads to accelerating profit levels, investing $5,000 in AMD stock looks more like an intelligent decision. Before you buy stock in Advanced Micro Devices, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 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 Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $638,985!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $853,108!* Now, it's worth noting Stock Advisor's total average return is 978% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Will Healy has positions in Advanced Micro Devices. The Motley Fool has positions in and recommends Advanced Micro Devices and Microsoft. The Motley Fool 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 Smartest Growth Stock to Buy With $5,000 Right Now was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
a day ago
- Business
- Yahoo
Options Market Signals Bullish Impetus on AMD Stock
While investors generally think in terms of months if not years, options traders think in terms of weeks, maybe even days or hours. Trading can be rewarding because of the speed and leverage involved. At the same time, the practice tends to be awfully binary — you either win big or you lose your entire principle. If you can handle the heat in the kitchen, you'll want to keep close tabs on Advanced Micro Devices (AMD). Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter As one of the top semiconductor giants, Advanced Micro Devices, has skyrocketed over the past several years due to the emergence of innovative sectors such as cryptocurrencies and artificial intelligence. That said, economic challenges and broad competitive pressures have weighed on AMD stock. Since the start of this year, shares are still down about 9%. At the same time, AMD popped over 14% in the trailing month, reflecting a tech sector recovery. Within the raw price discovery process, market breadth data suggests that AMD stock can continue taking this positive momentum to higher ground. As a result, I'm taking a bullish position on AMD stock. As traders, we're looking for the how of the market — how much, how fast, and most importantly, how likely. We're not so much concerned about the why. With options trading, we're dealing with empirical probabilities. It's what makes the practice so rewarding but also incredibly risky. If you can handle the heat, below is the game plan on extracting quick alpha from AMD stock. As stated earlier, options trading focuses on the how of the market, and the most important how is how likely. In mathematical terms, we're looking for the probability of a particular outcome materializing over a defined time period. Every options strategy starts with a baseline probability canvas, if you will, and this canvas is functionally crafted by a rise over run equation. For example, to discover the likelihood of AMD stock rising over any given one-week period, you take the number of positive weeks and divide it by the total number of weeks in the dataset. In AMD's case, the long-side ratio is 55.26%. Colloquially speaking, a bullish trader at any given moment has a 5.26% advantage over a coin toss. That's a small but powerful edge. Unless you have compelling evidence to the contrary, you're better off placing a long-side debit-based wager on AMD stock. Stated differently, you're incentivized to pay a premium for the right to bet on a particular outcome materializing (i.e., that AMD rises). Another factor that plays into the optimists' hands is the baseline performance metric. It's not just that AMD stock features a 55% long-side success ratio. Instead, when shares rise over that one-week period, the average return is 4.1%. That's awfully robust, making the semiconductor firm a tempting proposition. From a market breadth perspective, though, circumstances are even more enticing. In the past two months, AMD stock printed a '6-4-U' sequence: six up weeks, four down weeks, with a net positive trajectory across the 10-week period. Notably, in nearly 57% of cases, the following week's price action resulted in upside, with a median return of 4.41%. If the implications of the 6-4-U sequence play out over this coming week, it's well within reason that AMD stock could reach above $115. Should the bulls continue to maintain control of the market, it could eventually hit $117 to $120. To be fair, the difference between a long-side success ratio of 55% and 57% is small. Nevertheless, the framework enhances the incentivization profile of AMD stock in that a bullish debit-based approach empirically represents the most feasible approach. With the above market intelligence, aggressive traders seeking a quick profit may consider the 114/115 bull call spread expiring June 6. This transaction involves buying the $114 call and simultaneously selling the $115 call, for a net debit paid of $37. Should AMD stock rise through the short strike price at expiration, the maximum reward is $63, a payout of over 170%. What makes this trade so tempting is the statistical response to the 6-4-U market breadth sequence. Within a one-week period, AMD stock could rise above the $115 mark. If so, that would be enough to trigger the short strike price. Further, the June 6 expiration date would provide an extra week for the forecast to pan out. Turning to Wall Street, AMD stock has a Moderate Buy consensus rating based on 22 Buys, nine Holds, and zero Sell ratings. The average AMD price target is $126.55, implying 14.72% upside potential. As circumstances stand, Advanced Micro Devices natively enjoys an upward bias. Essentially, a bullish trader enjoys a 5% edge over a coin toss. Thanks to a specific market breadth sequence, though, this advantage has improved to 7%, along with a bump up in median performance. Taken as a whole, there is an incentive to consider a long-side debit-based options strategy. Disclaimer & DisclosureReport an Issue Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
These Stocks Are Rising Due to Nvidia's Solid Earnings Report
Several stocks are rising Thursday morning after Nvidia's first-quarter revenue topped estimates. Competing chipmakers like Broadcom and Advanced Micro Devices were up, along with other hardware makers like Dell and Super Micro Computer. Some energy stocks were also lifted as increasing power demand for AI-focused data centers is expected to boost their (NVDA) solid first-quarter results reported after the bell on Wednesday are lifting a number of stocks across the chip and server industries Thursday morning. Shares of a range of hardware makers like Super Micro Computer (SMCI) and Vertiv Holdings (VRT) each rose in premarket trading, while two of Nvidia's biggest chipmaking competitors Broadcom (AVGO) and Advanced Micro Devices (AMD) were each up 2%. Dell (DELL) and HP Enterprise (HPE) stocks were up 1% Thursday morning, as JPMorgan analysts said Nvidia's earnings showing strong demand and supply of Nvidia's latest products serves as a strong signal for the server makers' earnings and outlooks. Shares of a pair of energy-related companies, GE Vernova (GEV) and Constellation Energy Group (CEG), were also up just over 1% as nuclear energy stocks have been lifted by the AI trade and expected rise in power demand that more data centers will bring. Nvidia shares were still leading the way, up more than 5% about 45 minutes ahead of markets opening on Thursday. Read the original article on Investopedia Sign in to access your portfolio
Free Malaysia Today
2 days ago
- Business
- Free Malaysia Today
Wall Street futures climb as federal court rules against Trump's tariffs
May has been a solid month for equities, with both the S&P 500 and the Nasdaq on pace for their best monthly performances since November 2023. (EPA Images pic) NEW YORK : Wall Street futures climbed today after a US trade court blocked most of President Donald Trump's proposed tariffs, while AI bellwether Nvidia's stronger-than-expected quarterly revenue added to the upbeat mood. Nvidia jumped over 6% in premarket trading after reporting 69% quarterly sales growth, driven by customers stockpiling AI chips ahead of US export restrictions to China. The company, however, warned that the new curbs are expected to cut US$8 billion from current-quarter sales. Other chipmakers rose in the wake of Nvidia's results, with Advanced Micro Devices gaining 3%. The VanEck Semiconductor ETF advanced 3.2%. Global risk appetite was also buoyed after a US court invalidated with immediate effect most of Trump's sweeping levies imposed since January, but did not address some industry-specific tariffs on automobiles, steel and aluminium. 'This ruling is a key development, and it will weaken Trump's bargaining power in his ongoing negotiations with the US' key trading partners,' National Bank of Kuwait analysts said in a note. 'If the ruling is sustained, it will be a major positive development for the US and the global economy,' analyst said. However, the decision can be appealed to the US court of appeals for the Federal Circuit in Washington, DC, and potentially to the US Supreme Court. At 7.06am, Dow E-minis were up 205 points, or 0.49%, S&P 500 E-minis were up 64.25 points, or 1.09%. Nasdaq 100 E-minis were up 345.5 points, or 1.62%. Futures linked to the economically-sensitive Russell 2000 small-cap index also ticked up 1.07%. Apple, which was hit with a threat of tariffs from Trump last week, led gains among megacap and growth stocks with a 2.4% jump. Meta Platforms rose 1.5%, while shares of Alphabet added 1.3%. The S&P 500 is currently about 4% below an all-time high touched on Feb 19, having rebounded from a nearly 19% decline earlier in April, supported by easing trade tensions, strong earnings, and subdued inflation data that boosted risk appetite. May has been a solid month for equities, with both the S&P 500 and the Nasdaq on pace for their best monthly performances since November 2023. Minutes from the US Federal Reserve's (Fed) latest policy meeting, released yesterday, indicated that policymakers acknowledged they could face 'difficult tradeoffs' in coming months in the form of rising inflation alongside rising unemployment. Later in the day, the second estimate for first-quarter GDP will be released at 8.30am and personal consumption expenditure data is slated for Friday. At least five Fed policymakers including Fed board governor Adriana Kugler are scheduled to make public remarks through the day. In other earnings, HP Inc shed nearly 9% after the PC maker cut its annual profit forecast. Best Buy dropped nearly 3% after the electronics retailer lowered its annual sales forecast.
Zawya
2 days ago
- Business
- Zawya
Wall Street futures climb as federal court rules against Trump's tariffs
Wall Street futures climbed on Thursday after a U.S. trade court blocked most of President Donald Trump's proposed tariffs, while AI bellwether Nvidia's stronger-than-expected quarterly revenue added to the upbeat mood. Nvidia jumped over 6% in premarket trading after reporting 69% quarterly sales growth, driven by customers stockpiling AI chips ahead of U.S. export restrictions to China. The company, however, warned that the new curbs are expected to cut $8 billion from current-quarter sales. Other chipmakers rose in the wake of Nvidia's results, with Advanced Micro Devices gaining 3%. The VanEck Semiconductor ETF advanced 3.2%. Global risk appetite was also buoyed after a U.S. court invalidated with immediate effect most of Trump's sweeping levies imposed since January, but did not address some industry-specific tariffs on automobiles, steel and aluminum. "This ruling is a key development, and it will weaken Trump's bargaining power in his ongoing negotiations with the U.S.' key trading partners," National Bank of Kuwait analysts said in a note. "If the ruling is sustained, it will be a major positive development for the U.S. and the global economy." However, the decision can be appealed to the U.S. Court of Appeals for the Federal Circuit in Washington, D.C., and potentially to the U.S. Supreme Court. At 7:06 a.m. ET, Dow E-minis were up 205 points, or 0.49%, S&P 500 E-minis were up 64.25 points, or 1.09%. Nasdaq 100 E-minis were up 345.5 points, or 1.62%. Futures linked to the economically-sensitive Russell 2000 small-cap index also ticked up 1.07%. Apple, which was hit with a threat of tariffs from Trump last week, led gains among megacap and growth stocks with a 2.4% jump. Meta Platforms rose 1.5%, while shares of Alphabet added 1.3%. The S&P 500 is currently about 4% below an all-time high touched on February 19, having rebounded from a nearly 19% decline earlier in April, supported by easing trade tensions, strong earnings, and subdued inflation data that boosted risk appetite. May has been a solid month for equities, with both the S&P 500 and the Nasdaq on pace for their best monthly performances since November 2023. Minutes from the U.S. Federal Reserve's latest policy meeting, released on Wednesday, indicated that policymakers acknowledged they could face "difficult tradeoffs" in coming months in the form of rising inflation alongside rising unemployment. Later in the day, the second estimate for first-quarter GDP will be released at 8:30 a.m. ET and Personal Consumption Expenditure data is slated for Friday. At least five Fed policymakers including Fed Board Governor Adriana Kugler are scheduled to make public remarks through the day. In other earnings, HP Inc shed nearly 9% after the PC maker cut its annual profit forecast. Best Buy dropped nearly 3% after the electronics retailer lowered its annual sales forecast. (Reporting by Shashwat Chauhan in Benglauru; Editing by Sherry Jacob-Phillips and Maju Samuel)
