Latest news with #LisaSu
Globe and Mail
7 hours ago
- Business
- Globe and Mail
AMD Stock Insider Buys $1M Worth of Shares. Is This a Bullish Turning Point?
A massive insider purchase just hit Advanced Micro Devices (AMD), and it's raising eyebrows across Wall Street. Philip Guido, AMD's Chief Commercial Officer, bought nearly $1 million worth of AMD shares on May 20, marking the stock's largest insider buy since November 2006. Insider activity like this is often seen as a signal of confidence — especially when it's this large. While AMD is still trading about 39% off its 52-week highs, it has quietly outperformed over the past 3 months, gaining 13.8% while the broader market slipped. Here's Why Traders Are Taking Notice Barchart just triggered a bullish 20/100-day moving average crossover for AMD on May 27 The stock's put/call open interest ratio is falling, which may suggest bullish accumulation AMD is gearing up for a June 12 AI event hosted by CEO Lisa Su, highlighting new developments in artificial intelligence Even politicians like Marjorie Taylor Greene and Ro Khanna are buying the dip Add it all up, and it's clear that AMD is becoming a key stock to watch in the AI semiconductor subsector heading into the summer. Get the full breakdown in this news reel on AMD: Want to track trade setups like this as they happen? Try a free 30-day trial of Barchart Premier and unlock full access to options flow, trading signals, and P&L tools. Start Your Free Trial >>
Yahoo
3 days 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
6 days ago
- Business
- Yahoo
Amazon Just Sent a Massive Warning to Nvidia Investors
Amazon is one of Nvidia's biggest customers. The cloud computing giant recently made a new AI investment in one of Nvidia's biggest competitors. The market is primed for the smaller company to take up more real estate in data centers. 10 stocks we like better than Advanced Micro Devices › Nvidia (NASDAQ: NVDA) has seen its sales soar on the back of a few big customers spending heavily to outfit data centers with as many of the chipmaker's GPUs as they can buy. Its top three customers accounted for 34% of sales last year. Amazon (NASDAQ: AMZN) is likely one of those big customers. The cloud computing giant spent over $93 billion in capital expenditures over the last 122 months, primarily focused on building out data centers for artificial intelligence (AI). That number will climb above $100 billion this year. While there's a lot of overhead, including buildings, server racks, networking equipment, and more, a good chunk of that spending goes to Nvidia for its leading-edge GPUs. But Nvidia's chips aren't the only ones Amazon uses in its servers, and the company just sent a signal that a competitor could be taking up more space in its data centers this year. Amazon was caught flat-footed as generative AI took off in late 2022, but it's invested heavily to catch up with its competitors ever since. It made a $4 billion investment in Anthropic early last year, and it added another $4 billion in November. The most recent deal included a strategic partnership where Anthropic will use Amazon's custom silicon for large language model training and inference. Amazon's custom AI chips are designed in partnership with Marvell Technologies. Marvell also makes networking chips and other data center chips among a broader silicon portfolio. Amazon made a small equity investment in the company in late 2021 well before it chose the chipmaker for its custom Trainium and Inferentia chips. Amazon recently made another AI investment. Its first-quarter 13F filing with the SEC revealed a purchase of 822,234 shares of Advanced Micro Devices (NASDAQ: AMD). Those shares are worth about $90 million at today's price, which isn't a huge investment for a company generating tens of billions of dollars in free cash flow every quarter. However, that's still enough to make it Amazon's third-largest marketable equity holding in its portfolio. AMD is Nvidia's closest competitor when it comes to advanced GPUs. It's also the only company Intel has licensed to use its x86 CPU architecture, which is essential for Windows PCs and servers. The chipmaker is well positioned to gain market share on both fronts (GPUs and CPUs), and Amazon's equity investment could signal an acceleration in AMD's sales to the largest cloud computing company in the world. AMD CEO Lisa Su believes the AI accelerator market -- which includes GPUs and custom silicon solutions like Marvell's -- will grow at an average rate of 60% per year from 2025 through 2028 to reach $500 billion. While Nvidia will likely take the bulk of that spend, smaller companies are positioned to gain market share over that period with improved price performance. Not to mention, AMD and other chipmakers offer cloud providers a chance to diversify away from reliance on Nvidia, ensuring Nvidia's chip prices don't balloon out of control. Indeed, AMD recently struck a deal with Oracle to deploy a cluster of 30,000 AMD MI355X accelerators, which helped push AMD's data center segment revenue 57% higher year over year in the first quarter. AMD's existing data center partnerships for its EPYC CPUs with all the hyperscalers put it in a great position to expand those relationships with its Instinct GPUs. On top of the opportunity in GPUs, AMD has become a leading provider of CPUs for cloud computing. That can be attributed to Intel falling behind in technological capabilities relative to Taiwan Semiconductor Manufacturing, where AMD prints its chips. As a result, AMD can offer better price performance with its more power-efficient chips. With better CPUs and a competitive GPU lineup, AMD should continue to take up more and more real estate in the hyperscalers' data centers. Investors can buy AMD stock today for 27-times forward earnings. That's a premium to the overall market, but a discount relative to Nvidia, which trades closer to 32-times earnings. That said, Nvidia continues to grow faster than AMD thanks to its pricing power and scale, so it may deserve a premium to AMD. Amazon very likely bought shares at a better valuation than investors can get today, but its stake in AMD is a strong indication that the chipmaker is continuing to make progress in gaining market share. Given AMD's solid CPU business and the upside potential of gaining share in the fast-growing AI accelerator market, the stock looks less risky than Nvidia at its current price. 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 $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $804,688!* Now, it's worth noting Stock Advisor's total average return is 957% — a market-crushing outperformance compared to 167% 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 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Adam Levy has positions in Amazon and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon, Intel, Nvidia, Oracle, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Marvell Technology and recommends the following options: short May 2025 $30 calls on Intel. The Motley Fool has a disclosure policy. Amazon Just Sent a Massive Warning to Nvidia Investors was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
24-05-2025
- Business
- Yahoo
Should You Buy These Beaten-Down Tech Stocks?
AMD has seen mixed business results lately, but it's building momentum that could boost the stock. Micron Technology operates in a cyclical industry, but it's on track for record revenue this year. 10 stocks we like better than Advanced Micro Devices › The technology sector is full of innovators that offer promising long-term prospects for investors, and that's why it can be beneficial to invest in tech leaders when their share prices are down. Shares of Advanced Micro Devices (NASDAQ: AMD) and Micron Technology (NASDAQ: MU) are trading at steep discounts, while these companies are experiencing strong demand for their data center products. Is it time to buy these two beaten-down tech stocks? Advanced Micro Devices' stock has fallen 47% from its previous peak, but the shares got a boost after the company's first-quarter earnings report in May. Despite tariffs creating a lot of uncertainty for businesses, AMD surprised investors by reporting its fourth consecutive quarter of accelerating growth, led by demand for its data center and AI chips. While revenue and earnings fell sequentially over the fourth quarter, demand remains significantly elevated over last year. For Q1, revenue surged 36% year over year to $7.4 billion, with adjusted earnings up 55%. One factor sending the stock higher after the report was AMD's positive outlook for its embedded chip business, which includes sales to industrial markets. This segment posted revenue declines over the past year, but management is now guiding for a return to growth in the second half of 2025. Additionally, strong demand for AMD's new Radeon 9070 series graphics chips drove a revenue increase in the gaming segment of 28% year over year in the quarter. If both the embedded and gaming segments are growing later this year, AMD stock could potentially climb higher. The stock is trading at a forward price-to-earnings (P/E) ratio of 29, which looks attractive for a company with a history of delivering strong growth. But one factor weighing on the stock price is chip export restrictions to China, which AMD expects to reduce its full-year revenue by $1.5 billion. However, management sees the stock as undervalued based on its long-term prospects. It recently announced a $6 billion share repurchase program, bringing its total share repurchase authorization to $10 billion. CEO Lisa Su said: "Our expanded share repurchase program reflects the Board's confidence in AMD's strategic direction, growth prospects, and ability to consistently generate strong free cash flow." With AMD on the verge of potentially seeing all its segments return to growth, in addition to pursuing a $500 billion AI chip opportunity, the stock appears to be a compelling buy. The soaring demand for AI chips is also creating a strong demand environment for storage and memory products to transmit massive amounts of data in data centers. Micron Technology is a leading manufacturer of these products, but uncertainty over near-term demand trends has sent the stock 37% off its recent highs. Micron Technology operates in a highly cyclical industry. It sells memory and solid-state storage products into consumer and data center markets. The company's revenue has trended higher over the last 15 years, and it is currently sitting close to record highs from booming data center demand over the past year. Micron is currently in a strong demand cycle. The company's revenue grew 38% year over year in the most recent quarter, and management expects record quarterly revenue in the fiscal third quarter, driven by the data center market. Investors should be aware that Micron carries a higher risk than AMD. While AMD's annual revenue growth has been more consistent year to year, Micron's annual revenue in the last five years looks like a roller coaster. Investors need to know if the demand from data centers can support higher revenue and earnings in the coming years. One reason to like Micron's prospects is that data centers are going to need more memory and storage for data processing. It's absolutely essential, which is why Micron is experiencing such strong demand for high-bandwidth memory products right now. But this is a competitive market, with several manufacturers vying for market share. This can create volatile swings in selling prices that affect Micron's revenue, hence why its revenue has been volatile in recent years. Despite fluctuation in year-to-year financials due to these risk factors, Micron's innovation in memory technology, where new products are constantly pushing the needle on data retrieval speeds and overall performance, is driving higher demand over the long term. Micron is well-positioned to be a leader in serving booming markets like AI and cloud computing for years to come, and that should lead to higher revenue over the next 10 years, even though this growth may not happen in a smooth line. For what it's worth, the consensus analyst estimate has revenue climbing to $45 billion over the next two years. Earnings are expected to reach $11.12. That puts the stock's forward P/E at less than 10, which could support significant upside for the stock. 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 $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $804,688!* Now, it's worth noting Stock Advisor's total average return is 957% — a market-crushing outperformance compared to 167% 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 John Ballard has positions in Advanced Micro Devices. The Motley Fool has positions in and recommends Advanced Micro Devices. The Motley Fool has a disclosure policy. Should You Buy These Beaten-Down Tech Stocks? was originally published by The Motley Fool
Yahoo
24-05-2025
- Business
- Yahoo
Was Jim Cramer Right About Advanced Micro Devices, Inc. (AMD)?
We recently published a list of In this article, we are going to take a look at where Advanced Micro Devices, Inc. (NASDAQ:AMD) stands against other stocks that Jim Cramer discusses. Back in 2024, on May 16, a caller on the Mad Money show asked whether to buy, sell, or hold Advanced Micro Devices, Inc. (NASDAQ:AMD), amid the AI chip arms race. Cramer praised Lisa Su and backed AMD's GPU pipeline back then: 'AMD? Lisa Su is doing a terrific job. I think she's going to revise up how many of these GPUs — of the really good chips — she's going to have and how much she's going to sell. I think you buy AMD here.' AMD did not live up to expectations, falling 27.95% after Cramer called it a buy based on AI strength. A close up of a complex looking PCB board with several intergrated semiconductor parts. Advanced Micro Devices, Inc. (NASDAQ:AMD) is navigating intense AI competition, and while its product pipeline is strong, investors expected more near-term upside. Talking about the company ahead of its earnings in early May, Cramer tried to maintain his bullish outlook: 'After the close, we want to hear great things about demand from Advanced Micro Devices, AMD. Perhaps we get the news that AMD's selling that manufacturing part of the ZT Systems. That's a company they acquired for $4.9 billion in cash and stock in March. Now that could give this stock a lot of juice.' Overall, AMD ranks 2nd on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of AMD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AMD and that has 100x upside potential, check out our report about this cheapest AI stock. cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
