2 Top AI Stocks to Buy With $1,000
Super Micro Computer is an affordable way to bet on the AI infrastructure opportunity.
AMD's diversified business model could boost its stability.
10 stocks we like better than Super Micro Computer ›
There is a lot you can do with $1,000. But if you want to get a step closer to sustainable wealth, consider putting that money to work in the stock market. The burgeoning generative artificial intelligence (AI) industry gives investors an excellent opportunity to bet on a megatrend that may eventually rival the internet in its impact on global productivity.
Let's explore why Super Micro Computer (NASDAQ: SMCI) and Advanced Micro Devices (NASDAQ: AMD) look like solid long-term bets.
Super Micro Computer
Popular consumer-facing AI apps like OpenAI's ChatGPT rely on a vast supply chain of enabling infrastructure. And while chipmakers like Nvidia or AMD produce the graphics processing units (GPUs) needed to train and run these algorithms, Supermicro supplies the computer servers that make these chips usable for the end client. The company's business is booming as demand for AI hardware continues to accelerate.
Third-quarter revenue jumped a respectable 20% year over year to $4.6 billion, helped by demand for Nvidia's new Blackwell GPUs and Supermicro's proprietary liquid cooling solutions designed to help clients prevent their massive data centers from overheating.
As a middleman in the AI hardware industry, Supermicro doesn't have the strongest economic moat. Its AI servers face stiff competition from foreign rivals in lower-cost nations like Taiwan (Inventec, for example). However, Supermicro's extensive U.S. manufacturing footprint will allow it to benefit from made-in-America policies and incentives, which include tariffs and tax benefits for domestic production under the recently signed spending bill.
With a forward price-to-earnings (P/E) multiple of just 16, Supermicro shares are remarkably affordable compared to the S&P 500 index average of 24 and alternative AI hardware company Nvidia, which trades for 38 times forward earnings.
Advanced Micro Devices
Like Supermicro, AMD operates on the hardware side of the AI industry, competing with its main rival, Nvidia, to produce off-the-shelf hardware solutions for training and running AI algorithms. While AMD is in a distant second place (with an estimated market share of just 14.5% in AI chips compared to Nvidia's 85.2%), its more diversified business model could give it protection against a potential AI industry downturn.
In some ways, Nvidia has become the victim of its own success. In the first quarter, its data center segment represented a whopping 89% of total revenue, making the company a one-trick pony. On the other hand, AMD gets just half of its sales from its data center segment. And AMD still enjoys a healthy contribution from different business verticals like its client segment (CPUs for laptops) and gaming hardware.
That said, AMD's data center segment will be its long-term growth engine as the company competes with its larger rival by offering better value for money. First-quarter revenue jumped 36% year over year to $7.4 billion, driven by sales of its new EPYC CPU and Instinct GPU chips, designed to handle advanced AI workloads. While net income grew 55% year over year to $1.57 billion, the stock is a little pricey with a forward P/E of 39.
Which stock is best for you?
Supermicro and AMD are both great picks for AI-focused investors seeking alternatives to Nvidia in the hardware side of the industry. But Supermicro looks like the better pick because of its rock-bottom valuation and potential to benefit from the federal protectionist economic policies. While AMD also looks like a winner, it already trades at a significant premium over the alternatives.
Should you buy stock 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 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.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,056,790!*
Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of July 15, 2025
Will Ebiefung has positions in Super Micro Computer. The Motley Fool has positions in and recommends Advanced Micro Devices and Nvidia. The Motley Fool has a disclosure policy.
2 Top AI Stocks to Buy With $1,000 was originally published by The Motley Fool
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
a minute ago
- Yahoo
Medallion Financial Corp. to Report 2025 Second Quarter Results on Wednesday, July 30, 2025
Conference Call Scheduled for 9:00 am ET on Thursday, July 31, 2025 NEW YORK, July 21, 2025 (GLOBE NEWSWIRE) -- Medallion Financial Corp. (NASDAQ: MFIN, the 'Company'), a specialty finance company that originates and services loans in various consumer and commercial industries, as well as loan products and services offered through fintech strategic partners, announced today that it will report its financial results for the quarter ended June 30, 2025, after market close on Wednesday, July 30, 2025. Live Conference Call and Webcast A conference call to discuss these financial results will be held as follows: Date: Thursday, July 31, 2025 Time: 9:00 a.m. ET Dial-in number: (412) 317-0504 Live webcast: Link to Webcast of 2Q25 Earnings Call A link to the live audio webcast of the conference call will also be available at the Company's IR website. Replay Information The conference call replay will be available following the end of the call through Thursday, August 7, 2025. Dial-in number: (412) 317-6671 Passcode: 10201134 Additionally, the webcast replay will be available at the Company's IR website. About Medallion Financial Corp. Medallion Financial Corp. (NASDAQ: MFIN) and its subsidiaries originate and service a growing portfolio of consumer loans and mezzanine loans in various industries, and loan products and services offered through fintech strategic partners. Key industries served include recreation (towable RVs and marine) and home improvement (replacement roofs, swimming pools, and windows). Medallion Financial Corp. is headquartered in New York City, NY, and its largest subsidiary, Medallion Bank, is headquartered in Salt Lake City, Utah. For more information, please visit Contacts: Medallion Financial Corp. 212-328-2176InvestorRelations@ Investor RelationsThe Equity Group Catilcati@ (212) 836-9611 Val Ferrarovferraro@ (212) 836-9633
Yahoo
a minute ago
- Yahoo
Zeta Global to Announce Second Quarter 2025 Results on August 5, 2025
NEW YORK, July 21, 2025--(BUSINESS WIRE)--Zeta Global (NYSE: ZETA), the AI Marketing Cloud, today announced the planned release of its second quarter 2025 financial results after the market close on Tuesday, August 5, 2025. Co-Founder, Chairman, and CEO David A. Steinberg and CFO Chris Greiner will host a conference call later that day, at 4:30 p.m. Eastern Time. A live webcast and replay of the conference call will be accessible on Zeta's Investor Relations website at About Zeta Zeta Global (NYSE: ZETA) is the AI Marketing Cloud that leverages advanced artificial intelligence (AI) and trillions of consumer signals to make it easier for marketers to acquire, grow, and retain customers more efficiently. Through the Zeta Marketing Platform (ZMP), our vision is to make sophisticated marketing simple by unifying identity, intelligence, and omnichannel activation into a single platform – powered by one of the industry's largest proprietary databases and AI. Our enterprise customers across multiple verticals are empowered to personalize experiences with consumers at an individual level across every channel, delivering better results for marketing programs. Zeta was founded in 2007 by David A. Steinberg and John Sculley and is headquartered in New York City with offices around the world. To learn more, go to View source version on Contacts Investor Relations Matt Pfauir@ Press Candace Deanpress@
Yahoo
a minute ago
- Yahoo
AGNC Investment Corp. Announces Second Quarter 2025 Financial Results
BETHESDA, Md., July 21, 2025 /PRNewswire/ -- AGNC Investment Corp. ("AGNC" or the "Company") (Nasdaq: AGNC) today announced financial results for the quarter ended June 30, 2025. SECOND QUARTER 2025 FINANCIAL HIGHLIGHTS $(0.13) comprehensive loss per common share, comprised of: $(0.17) net loss per common share $0.05 other comprehensive income ("OCI") per common share on investments marked-to-market through OCI $0.38 net spread and dollar roll income per common share1 Excludes $0.01 per common share of estimated "catch-up" premium amortization benefit due to change in projected constant prepayment rate ("CPR") estimates $7.81 tangible net book value per common share as of June 30, 2025 Decreased $(0.44) per common share, or -5.3%, from $8.25 per common share as of March 31, 2025 $0.36 dividends declared per common share for the second quarter -1.0% economic return on tangible common equity for the quarter Comprised of $0.36 dividends per common share and $(0.44) decrease in tangible net book value per common share OTHER SECOND QUARTER HIGHLIGHTS $82.3 billion investment portfolio as of June 30, 2025, comprised of: $73.3 billion Agency MBS $8.3 billion net forward purchases/(sales) of Agency MBS in the "to-be-announced" market ("TBA securities") $0.7 billion credit risk transfer ("CRT") and non-Agency securities and other mortgage credit investments 7.6x tangible net book value "at risk" leverage as of June 30, 2025 7.5x average tangible net book value "at risk" leverage for the quarter Unencumbered cash and Agency MBS totaled $6.4 billion as of June 30, 2025 Excludes unencumbered CRT and non-Agency securities Represents 65% of the Company's tangible equity as of June 30, 2025 7.8% average projected portfolio life CPR as of June 30, 2025 8.7% actual portfolio CPR for the quarter 2.01% annualized net interest spread for the quarter2 Issued 92.6 million shares of common equity through At-the-Market ("ATM") Offerings for net proceeds of $799 million ___________ 1. Represents a non-GAAP measure. Please refer to the Reconciliation of GAAP Comprehensive Income (Loss) to Net Spread and Dollar Roll Income and Use of Non-GAAP Financial Information included in this release for additional information. 2. Please refer to Net Interest Spread Components by Funding Source included in this release for additional information regarding the Company's annualized net interest spread. MANAGEMENT REMARKS"Following the administration's 'Liberation Day' tariff announcement in early April, financial markets repriced significantly to reflect greater governmental policy risk and its potentially adverse impact on the economy and monetary policy. Interest rate volatility also increased notably, and investor sentiment turned sharply negative," said Peter Federico, the Company's President, Chief Executive Officer and Chief Investment Officer. "Although most asset class valuations retraced the April losses and ultimately increased quarter-over-quarter, Agency MBS were an exception, as spreads to benchmark rates widened moderately during the second quarter. As a result of this underperformance, AGNC's economic return for the second quarter was -1.0%. "Looking ahead, we continue to have a favorable outlook for levered and hedged Agency MBS investments. Mortgage spreads to benchmark rates remain elevated by historical standards and range-bound, an extremely favorable return environment. Supply dynamics remain in balance with demand, and bank participation in the Agency MBS markets appears poised to increase following the adoption of anticipated regulatory changes. Finally, and perhaps most importantly, the administration has reiterated its intent to preserve Agency MBS' pristine credit profile and to maintain or reduce current mortgage spreads to benchmark rates. Collectively, we believe these dynamics provide a very positive backdrop for AGNC's investment activities." "AGNC's -1.0% economic return on tangible common equity in the second quarter was comprised of $0.36 of dividends per common share and a $(0.44) decline in tangible net book value per common share, driven by moderately wider mortgage spreads to benchmark rates," said Bernice Bell, the Company's Executive Vice President and Chief Financial Officer. "AGNC's net spread and dollar roll income was $0.38 per common share for the second quarter. As a result of our risk management positioning and ample liquidity at the end of the first quarter, AGNC was able to navigate the substantial financial market volatility in April with our portfolio intact, and we opportunistically added assets at attractive levels using accretive capital raised through our At-the-Market program. Finally, AGNC concluded the second quarter with tangible 'at risk' leverage of 7.6x and a substantial liquidity position of $6.4 billion of unencumbered cash and Agency MBS, which constituted 65% of our tangible equity." TANGIBLE NET BOOK VALUE PER COMMON SHAREAs of June 30, 2025, the Company's tangible net book value per common share was $7.81 per share, a decrease of -5.3% for the quarter compared to $8.25 per share as of March 31, 2025. The Company's tangible net book value per common share excludes $526 million, or $0.50 and $0.55 per share, of goodwill as of June 30 and March 31, 2025, respectively. INVESTMENT PORTFOLIOAs of June 30, 2025, the Company's investment portfolio totaled $82.3 billion, comprised of: $81.6 billion of Agency MBS and TBA securities, including: $79.4 billion of fixed-rate securities, comprised of: $70.5 billion 30-year MBS, $8.1 billion 30-year TBA securities, net, and $0.8 billion 15 and 20-year MBS and TBA securities; and $2.2 billion of collateralized mortgage obligations ("CMOs"), adjustable-rate and other Agency securities; and $0.7 billion of CRT and non-Agency securities and other mortgage credit investments. As of June 30, 2025, 30-year fixed-rate Agency MBS and TBA securities represented 96% of the Company's investment portfolio, unchanged from March 31, of June 30, 2025, the Company's fixed-rate Agency MBS and TBA securities' weighted average coupon was 5.13%, compared to 5.03% as of March 31, 2025, comprised of the following weighted average coupons: 5.14% for 30-year fixed-rate securities; 4.33% for 15-year fixed-rate securities; and 3.11% for 20-year fixed-rate securities. The Company accounts for TBA securities and other forward settling securities as derivative instruments and recognizes TBA dollar roll income in other gain (loss), net on the Company's financial statements. As of June 30, 2025, such positions had a fair value of $8.3 billion and a GAAP net carrying value of $101 million reported in derivative assets/(liabilities) on the Company's balance sheet, compared to $7.5 billion and $44 million, respectively, as of March 31, 2025. CONSTANT PREPAYMENT RATESThe Company's weighted average projected CPR for the remaining life of its Agency securities held as of June 30, 2025 decreased to 7.8% from 8.3% as of March 31, 2025. The Company's weighted average CPR for the second quarter was 8.7%, compared to 7.0% for the prior quarter. The weighted average cost basis of the Company's investment portfolio was 101.2% of par value as of June 30, 2025. The Company's investment portfolio generated net premium amortization cost of $(30) million, or $(0.03) per common share, for the second quarter, which includes a "catch-up" premium amortization benefit of $11 million, or $0.01 per common share, due to a decrease in the Company's CPR projections for certain securities acquired prior to the second quarter. This compares to net a premium amortization cost for the prior quarter of $(39) million, or $(0.04) per common share, including a "catch-up" premium amortization (cost) of $(2) million, or less than $(0.01) per common share. ASSET YIELDS, COST OF FUNDS AND NET INTEREST RATE SPREAD The Company's average asset yield on its investment portfolio, excluding the TBA position, was 4.89% for the second quarter, compared to 4.78% for the prior quarter. Excluding "catch-up" premium amortization, the Company's average asset yield was 4.83% for the second quarter, compared to 4.80% for the prior quarter. Including the TBA position and excluding "catch-up" premium amortization, the Company's average asset yield for the second quarter was 4.87%, unchanged from the prior quarter. For the second quarter, the weighted average interest rate on the Company's repurchase agreements was 4.44%, compared to 4.45% for the prior quarter. For the second quarter, the Company's TBA position had an implied financing cost of 4.29%, compared to 4.34% for the prior quarter. Inclusive of interest rate swaps, the Company's combined weighted average cost of funds for the second quarter was 2.86%, compared to 2.75% for the prior quarter. The Company's annualized net interest spread, including the TBA position and interest rate swaps and excluding "catch-up" premium amortization, for the second quarter was 2.01%, compared to 2.12% for the prior quarter. NET SPREAD AND DOLLAR ROLL INCOMEThe Company recognized net spread and dollar roll income (a non-GAAP financial measure) for the second quarter of $0.38 per common share, compared to $0.44 per common share for the prior quarter. Net spread and dollar roll income excludes $0.01 and less than $(0.01) per common share of estimated "catch-up" premium amortization benefit / (cost) for the second quarter and prior quarter, respectively. The Company's cost of funds, net interest rate spread and net spread and dollar income excludes the impact of the Company's U.S. Treasury hedges and other supplemental interest rate hedges. For additional information regarding the Company's U.S. Treasury hedges, please refer to the schedule of Key Statistics included in this release. A reconciliation of the Company's total comprehensive income (loss) to net spread and dollar roll income and additional information regarding the Company's use of non-GAAP measures are included later in this release. LEVERAGEAs of June 30, 2025, $66.0 billion of repurchase agreements, $8.2 billion of net TBA dollar roll positions (at cost) and $0.1 billion of other debt were used to fund the Company's investment portfolio. The remainder, or approximately $3.2 billion, of the Company's repurchase agreements was used to fund short-term purchases of U.S. Treasury securities ("U.S. Treasury Repo") and is not included in the Company's leverage measurements. Inclusive of its TBA position and net payable/(receivable) for unsettled investment securities, the Company's tangible net book value "at risk" leverage ratio was 7.6x as of June 30, 2025, compared to 7.5x as of March 31, 2025. The Company's average "at risk" leverage ratio for the second quarter was 7.5x tangible net book value, compared to 7.3x for the prior quarter. As of June 30, 2025, the Company's repurchase agreements used to fund its investment portfolio ("Investment Securities Repo") had a weighted average interest rate of 4.49%, compared to 4.47% as of March 31, 2025, and a weighted average remaining maturity of 16 days, compared to 19 days as of March 31, 2025. As of June 30, 2025, $34.7 billion, or 53%, of the Company's Investment Securities Repo was funded through the Company's captive broker-dealer subsidiary, Bethesda Securities, LLC. HEDGING ACTIVITIES As of June 30, 2025, interest rate swaps, U.S. Treasury positions, swaptions and other interest rate hedges equaled 89% of the Company's outstanding balance of Investment Securities Repo, TBA position and other debt, compared to 91% as of March 31, 2025. As of June 30, 2025, the Company's pay fixed interest rate swap position totaled $45.1 billion in notional amount, had an average fixed pay rate of 2.10%, an average floating receive rate of 4.44% and an average maturity of 5.0 years, compared to $47.8 billion, 1.91%, 4.40% and 5.0 years, respectively, as of March 31, 2025. As of June 30, 2025, the Company had a net short U.S. Treasury position of $20.0 billion, net payer swaptions totaling $1.9 billion and a two-year swap equivalent long SOFR futures position of $1.2 billion outstanding, compared to $15.7 billion, $1.9 billion and $1.2 billion, respectively, as of March 31, 2025. OTHER GAIN (LOSS), NETFor the second quarter, the Company recorded a net loss of $(274) million in other gain (loss), net, or $(0.27) per common share, compared to a net loss of $(81) million, or $(0.09) per common share, for the prior quarter. Other gain (loss), net for the second quarter was comprised of: $(177) million of net realized losses on sales of investment securities; $270 million of net unrealized gains on investment securities measured at fair value through net income; $282 million of interest rate swap periodic income; $(518) million of net losses on interest rate swaps; $(9) million of net losses on interest rate swaptions; $3 million of net gains on SOFR futures; $(135) million of net losses on U.S. Treasury positions; $24 million of TBA dollar roll income; $(13) million of net mark-to-market losses on TBA securities; $(3) million of other interest income (expense), net; and $2 million of other miscellaneous gains. OTHER COMPREHENSIVE INCOMEDuring the second quarter, the Company recorded other comprehensive income of $48 million, or $0.05 per common share, consisting of net unrealized gains on the Company's Agency securities recognized through OCI, compared to $93 million, or $0.10 per common share, of other comprehensive income for the prior quarter. COMMON STOCK DIVIDENDSDuring the second quarter, the Company declared dividends of $0.12 per share to common stockholders of record as of April 30, May 30, and June 30, 2025, totaling $0.36 per share for the quarter. Since its May 2008 initial public offering through the second quarter of 2025, the Company has declared a total of $14.7 billion in common stock dividends, or $49.36 per common share. FINANCIAL STATEMENTS, OPERATING PERFORMANCE AND PORTFOLIO STATISTICSThe following measures of operating performance include net spread and dollar roll income; economic interest income; economic interest expense; and the related per common share measures and financial metrics derived from such information, which are non-GAAP financial measures. Please refer to "Use of Non-GAAP Financial Information" later in this release for further discussion of non-GAAP measures. AGNC INVESTMENT CORP. CONSOLIDATED BALANCE SHEETS (in millions, except per share data)June 30,2025March 31,2025December 31,2024September 30,2024June 30,2024(unaudited)(unaudited)(unaudited)(unaudited) Assets:Agency securities, at fair value (including pledged securities of $67,375, $63,275, $59,952, $62,331 and $54,999, respectively) $ 73,232$ 70,363$ 65,367$ 67,938$ 59,586 Agency securities transferred to consolidated variable interest entities, at fair value (pledged securities) 919597106106 Credit risk transfer securities, at fair value (including pledged securities of $558, $595, $590, $588 and $647, respectively) 613640633620683 Non-Agency securities, at fair value, and other mortgage credit investments (including pledged securities of $30, $173, $206, $224 and $213, respectively) 109290315334317 U.S. Treasury securities, at fair value (including pledged securities of $3,554, $3,268, $1,565, $2,527 and $2,319, respectively) 3,5653,2801,5752,5702,441 Cash and cash equivalents 656455505507530 Restricted cash 1,2161,2631,2661,2791,376 Derivative assets, at fair value 15598205157131 Receivable for investment securities sold (including pledged securities of $0, $908, $0, $1,612 and $0, respectively) —909—1,706— Receivable under reverse repurchase agreements 21,36217,60417,13713,49413,662 Goodwill 526526526526526 Other assets 496366389353327 Total assets $ 102,021$ 95,889$ 88,015$ 89,590$ 79,685 Liabilities:Repurchase agreements $ 69,153$ 66,138$ 60,798$ 65,979$ 56,947 Debt of consolidated variable interest entities, at fair value 6062646971 Payable for investment securities purchased 3921,84374324208 Derivative liabilities, at fair value 10670945364 Dividends payable 164148143134125 Obligation to return securities borrowed under reverse repurchase agreements, at fair value 21,30517,18016,67613,00913,248 Accounts payable and other liabilities 494406404366370 Total liabilities 91,67485,84778,25379,93471,033 Stockholders' equity:Preferred Stock - aggregate liquidation preference of $1,688 1,6341,6341,6341,6341,634 Common stock - $0.01 par value; 1,041.7, 949.0, 897.4, 844.2 and 766.1 shares issued and outstanding, respectively 109988 Additional paid-in capital 18,57517,76917,26416,74615,960 Retained deficit (9,422)(8,872)(8,554)(8,320)(8,338) Accumulated other comprehensive loss (450)(498)(591)(412)(612) Total stockholders' equity 10,34710,0429,7629,6568,652 Total liabilities and stockholders' equity $ 102,021$ 95,889$ 88,015$ 89,590$ 79,685 Tangible net book value per common share 1 $ 7.81$ 8.25$ 8.41$ 8.82$ 8.40 AGNC INVESTMENT CORP. CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per share data) (unaudited)Three Months EndedJune 30,2025March 31,2025December 31,2024September 30,2024June 30,2024 Interest income:Interest income $ 830$ 846$ 856$ 756$ 695 Interest expense 668687741820698 Net interest income (expense) 162159115(64)(3) Other gain (loss), net:Realized (loss) gain on sale of investment securities, net (177)(245)(88)106(115) Unrealized gain (loss) on investment securities measured at fair value through net income, net 2701,183(1,895)1,742(261) (Loss) gain on derivative instruments and other investments, net (367)(1,019)2,022(1,408)355 Total other (loss) gain, net (274)(81)39440(21) Expenses:Compensation and benefits 1819222115 Other operating expense 1091099 Total operating expense 2828323024 Net income (loss) (140)50122346(48) Dividend on preferred stock 3835363332 Net income (loss) available (attributable) to common stockholders $ (178)$ 15$ 86$ 313$ (80) Net income (loss) $ (140)$ 50$ 122$ 346$ (48) Unrealized gain (loss) on investment securities measured at fair value through other comprehensive income (loss), net 4893(179)200(18) Comprehensive income (loss) (92)143(57)546(66) Dividend on preferred stock 3835363332 Comprehensive income (loss) available (attributable) to common stockholders $ (130)$ 108$ (93)$ 513$ (98) Weighted average number of common shares outstanding - basic 1,017.3918.3882.8807.2740.0 Weighted average number of common shares outstanding - diluted 1,017.3921.9886.5810.1740.0 Net income (loss) per common share - basic $ (0.17)$ 0.02$ 0.10$ 0.39$ (0.11) Net income (loss) per common share - diluted $ (0.17)$ 0.02$ 0.10$ 0.39$ (0.11) Comprehensive income (loss) per common share - basic $ (0.13)$ 0.12$ (0.11)$ 0.64$ (0.13) Comprehensive income (loss) per common share - diluted $ (0.13)$ 0.12$ (0.11)$ 0.63$ (0.13) Dividends declared per common share $ 0.36$ 0.36$ 0.36$ 0.36$ 0.36 AGNC INVESTMENT CORP. RECONCILIATION OF GAAP COMPREHENSIVE INCOME (LOSS) TO NET SPREAD AND DOLLAR ROLL INCOME (NON-GAAP MEASURE) 2 (in millions, except per share data) (unaudited)Three Months EndedJune 30,2025March 31,2025December 31,2024September 30,2024June 30,2024 Comprehensive income (loss) available (attributable) to common stockholders $ (130)$ 108$ (93)$ 513$ (98) Adjustments to exclude realized and unrealized (gains) losses reported through net income:Realized (gain) loss on sale of investment securities, net 17724588(106)115 Unrealized (gain) loss on investment securities measured at fair valuethrough net income, net (270)(1,183)1,895(1,742)261 (Gain) loss on derivative instruments and other securities, net 3671,019(2,022)1,408(355) Adjustment to exclude unrealized (gain) loss reported through other comprehensive income:Unrealized (gain) loss on available-for-sale securities measure at fair value through other comprehensive income, net (48)(93)179(200)18 Other adjustments:Estimated "catch up" premium amortization cost (benefit) due to change in CPR forecast 3 (11)2(51)24(14) TBA dollar roll income 4,5 24231245 Interest rate swap periodic income, net 4,6 282293329456494 Other interest income (expense), net 4,7 (3)(11)(8)(12)(32) Net spread and dollar roll income available to common stockholders $ 388$ 403$ 329$ 345$ 394 Weighted average number of common shares outstanding - basic 1,017.3918.3882.8807.2740.0 Weighted average number of common shares outstanding - diluted 1,019.6921.9886.5810.1741.9 Net spread and dollar roll income per common share - basic $ 0.38$ 0.44$ 0.37$ 0.43$ 0.53 Net spread and dollar roll income per common share - diluted $ 0.38$ 0.44$ 0.37$ 0.43$ 0.53 AGNC INVESTMENT CORP. NET INTEREST SPREAD COMPONENTS BY FUNDING SOURCE 2 (in millions, except per share data) (unaudited)Three Months EndedJune 30,2025March 31,2025December 31,2024September 30,2024June 30,2024 Adjusted net interest and dollar roll income:Economic interest income: Investment securities - GAAP interest income 8 $ 830$ 846$ 856$ 756$ 695 Estimated "catch-up" premium amortization cost (benefit) due to change in CPR forecast 3 (11)2(51)24(14) TBA dollar roll income - implied interest income 4,9 154104843993 Economic interest income 973952889819774 Economic interest expense: Repurchase agreements and other debt - GAAP interest expense (668)(687)(741)(820)(698) TBA dollar roll income - implied interest expense 4,10 (130)(81)(72)(35)(88) Interest rate swap periodic income, net 4,6 282293329456494 Economic interest expense (516)(475)(484)(399)(292) Adjusted net interest and dollar roll income $ 457$ 477$ 405$ 420$ 482 Net interest spread:Average asset yield: Investment securities - average asset yield 4.89 %4.78 %5.02 %4.54 %4.70 % Estimated "catch-up" premium amortization cost (benefit) due to change in CPR forecast (0.06) %0.02 %(0.30) %0.14 %(0.10) % Investment securities average asset yield, excluding "catch-up" premium amortization 4.83 %4.80 %4.72 %4.68 %4.60 % TBA securities - average implied asset yield 9 5.14 %5.58 %5.66 %5.82 %5.47 % Average asset yield 11 4.87 %4.87 %4.80 %4.73 %4.69 % Average total cost of funds: Repurchase agreements and other debt - average funding cost 4.44 %4.45 %4.86 %5.41 %5.44 % TBA securities - average implied funding cost 10 4.29 %4.34 %4.74 %5.10 %5.11 % Average cost of funds, before interest rate swap periodic income, net 11 4.42 %4.44 %4.85 %5.40 %5.39 % Interest rate swap periodic income, net 12 (1.56) %(1.69) %(1.96) %(2.88) %(3.39) % Average total cost of funds 13 2.86 %2.75 %2.89 %2.52 %2.00 % Average net interest spread 2.01 %2.12 %1.91 %2.21 %2.69 % AGNC INVESTMENT CORP. KEY STATISTICS* (in millions, except per share data) (unaudited)Three Months Ended Key Balance Sheet Statistics: June 30,2025March 31,2025December 31,2024September 30,2024June 30,2024 Investment securities: 8Fixed-rate Agency MBS, at fair value - as of period end $ 71,104$ 68,468$ 64,049$ 66,668$ 58,729 Other Agency MBS, at fair value - as of period end $ 2,219$ 1,990$ 1,415$ 1,376$ 963 Credit risk transfer securities, at fair value - as of period end $ 613$ 640$ 633$ 620$ 683 Non-Agency MBS, at fair value - as of period end 14 $ 43$ 227$ 251$ 273$ 257 Total investment securities, at fair value - as of period end $ 73,979$ 71,325$ 66,348$ 68,937$ 60,632 Total investment securities, at cost - as of period end $ 75,484$ 73,148$ 69,446$ 69,961$ 63,599 Total investment securities, at par - as of period end $ 74,572$ 72,130$ 68,431$ 69,032$ 62,549 Average investment securities, at cost $ 67,887$ 70,725$ 68,188$ 66,674$ 59,198 Average investment securities, at par $ 66,876$ 69,704$ 67,181$ 65,748$ 58,066 TBA securities: 15Net TBA portfolio - as of period end, at fair value $ 8,263$ 7,473$ 6,861$ 4,068$ 5,348 Net TBA portfolio - as of period end, at cost $ 8,162$ 7,429$ 6,887$ 4,067$ 5,318 Net TBA portfolio - as of period end, carrying value $ 101$ 44$ (26)$ 1$ 30 Average net TBA portfolio, at cost $ 11,996$ 7,428$ 5,936$ 2,650$ 6,805 Average repurchase agreements and other debt 16 $ 59,469$ 61,707$ 59,690$ 59,322$ 50,784 Average stockholders' equity 17 $ 10,118$ 9,935$ 9,637$ 9,151$ 8,481 Tangible net book value per common share 1 $ 7.81$ 8.25$ 8.41$ 8.82$ 8.40 Tangible net book value "at risk" leverage - average 18 7.5 :17.3 :17.2 :17.2 :17.2 :1 Tangible net book value "at risk" leverage - as of period end 19 7.6 :17.5 :17.2 :17.2 :17.4 :1 Key Performance Statistics:Investment securities: 8Average coupon 5.14 %5.08 %5.03 %5.02 %4.98 % Average asset yield 4.89 %4.78 %5.02 %4.54 %4.70 % Average asset yield, excluding "catch-up" premium amortization 4.83 %4.80 %4.72 %4.68 %4.60 % Average coupon - as of period end 5.14 %5.12 %5.03 %5.01 %5.01 % Average asset yield - as of period end 4.92 %4.87 %4.77 %4.68 %4.70 % Average actual CPR for securities held during the period 8.7 %7.0 %9.6 %7.3 %7.1 % Average forecasted CPR - as of period end 7.8 %8.3 %7.7 %13.2 %9.2 % Total premium amortization benefit (cost) $ (30)$ (39)$ 11$ (69)$ (28) TBA securities:Average coupon - as of period end 20 5.22 %4.98 %5.29 %4.78 %5.27 % Average implied asset yield 9 5.14 %5.58 %5.66 %5.82 %5.47 % Combined investment and TBA securities - average asset yield, excluding "catch-up" premium amortization 11 4.87 %4.87 %4.80 %4.73 %4.69 % Cost of funds: 13Repurchase agreements - average funding cost 4.44 %4.45 %4.86 %5.41 %5.44 % TBA securities - average implied funding cost 10 4.29 %4.34 %4.74 %5.10 %5.11 % Interest rate swaps - average periodic income 12 (1.56) %(1.69) %(1.96) %(2.88) %(3.39) % Average total cost of funds, inclusive of TBAs and interest rate swap periodic income, net 11 2.86 %2.75 %2.89 %2.52 %2.00 % Repurchase agreements - average funding cost as of period end 4.49 %4.47 %4.76 %5.23 %5.50 % Interest rate swaps - average net pay/(receive) rate as of period end 21 (2.34) %(2.49) %(3.00) %(3.51) %(3.90) % Net interest spread:Combined investment and TBA securities average net interest spread, excluding "catch-up" premium amortization 2.01 %2.12 %1.91 %2.21 %2.69 % Expenses % of average stockholders' equity - annualized 1.11 %1.13 %1.33 %1.31 %1.13 % Economic return (loss) on tangible common equity - unannualized 22 (1.0) %2.4 %(0.6) %9.3 %(0.9) % Key Interest Rate Hedge StatisticsInterest rate swaps:Average interest rate swaps, notional amount (excluding forward starting swaps), net $ 45,849$ 44,179$ 39,483$ 44,781$ 45,263 Average pay-fixed rate 1.94 %1.73 %1.45 %1.38 %1.18 % Average receive-floating rate 4.38 %4.38 %4.71 %5.36 %5.50 % U.S. Treasury securities:Average short U.S. Treasury securities, at cost $ 19,754$ 18,677$ 15,731$ 13,259$ 13,105 Average short U.S. Treasury securities yield 4.16 %3.98 %3.78 %3.70 %3.77 % Average long U.S. Treasury securities, at cost $ 2,044$ 2,828$ 2,113$ 2,616$ 2,073 Average long U.S. Treasury securities yield 4.45 %4.37 %4.13 %4.05 %4.41 % U.S. Treasury futures:Average short U.S. Treasury futures, at cost $ 1,208$ 3,195$ 2,873$ 791$ 1,528 Average short U.S. Treasury futures implied yield 23 4.53 %4.50 %4.40 %4.35 %4.41 % Average long U.S. Treasury futures, at cost $ —$ 1,843$ —$ 750$ 118 Average long U.S. Treasury futures implied yield 23 — %4.21 %— %4.03 %4.22 % Average reverse repurchase agreement rate 4.33 %4.34 %4.65 %5.47 %5.35 % *Except as noted below, average numbers for each period are weighted based on days on the Company's books and records. All percentages are annualized, unless otherwise in financial tables may not total due to rounding. Tangible net book value per common share excludes preferred stock liquidation preference and goodwill. Table includes non-GAAP financial measures and/or amounts derived from non-GAAP measures. Refer to "Use of Non-GAAP Financial Information" for additional discussion of non-GAAP financial measures. "Catch-up" premium amortization cost/benefit is reported in interest income on the accompanying consolidated statements of operations. Amount reported in gain (loss) on derivatives instruments and other securities, net in the accompanying consolidated statements of operations. Dollar roll income represents the price differential, or "price drop," between the TBA price for current month settlement versus the TBA price for forward month settlement. Amount includes dollar roll income (loss) on long and short TBA securities. Amount excludes TBA mark-to-market adjustments. Represents periodic interest rate swap settlements. Amount excludes interest rate swap termination fees, mark-to-market adjustments and price alignment interest income (expense) on margin deposits. Other interest income (expense), net includes interest income on cash and cash equivalents, price alignment interest income (expense) on margin deposits, and other miscellaneous interest income (expense). Investment securities include Agency MBS, CRT and non-Agency securities. Amounts exclude TBA and forward settling securities accounted for as derivative instruments in the accompanying consolidated balance sheets and statements of operations. The average implied asset yield for TBA dollar roll transactions is extrapolated by adding the average TBA implied funding cost (Note 10) to the net dollar roll yield. The net dollar roll yield is calculated by dividing dollar roll income (Note 5) by the average net TBA balance (cost basis) outstanding for the period. The implied funding cost/benefit of TBA dollar roll transactions is determined using the "price drop" (Note 5) and market-based assumptions regarding the "cheapest-to-deliver" collateral that can be delivered to satisfy the TBA contract, such as the anticipated collateral's weighted average coupon, weighted average maturity and projected 1-month CPR. The average implied funding cost/benefit for all TBA transactions is weighted based on the Company's daily average TBA balance outstanding for the period. Amount calculated on a weighted average basis based on average balances outstanding during the period and their respective asset yield/funding cost. Represents interest rate swap periodic cost/income measured as a percent of total mortgage funding (Investment Securities Repo, other debt and net TBA securities (at cost)). Cost of funds excludes U.S. Treasury and other supplemental hedges used to hedge a portion of the Company's interest rate risk (such as swaptions and SOFR futures) and U.S. Treasury Repo. Non-Agency MBS, at fair value, excludes $66 million, $63 million, $64 million, $61 million and $60 million of other mortgage credit investments held as of June 30 and March 31, 2025 and December 31, September 30 and June 30, 2024, respectively. Includes TBA dollar roll position and, if applicable, forward settling securities accounted for as derivative instruments in the accompanying consolidated balance sheets and statements of operations. Amount is net of short TBA securities. Average repurchase agreements and other debt excludes U.S. Treasury Repo. Average stockholders' equity calculated as the average month-ended stockholders' equity during the quarter. Average tangible net book value "at risk" leverage during the period was calculated by dividing the sum of the daily weighted average Investment Securities Repo, other debt, and TBA and forward settling securities (at cost) outstanding for the period by the sum of average stockholders' equity adjusted to exclude goodwill. Leverage excludes U.S. Treasury Repo. Tangible net book value "at risk" leverage as of period end was calculated by dividing the sum of the amount outstanding under Investment Securities Repo, other debt, net TBA position and forward settling securities (at cost), and net receivable / payable for unsettled investment securities outstanding by the sum of total stockholders' equity adjusted to exclude goodwill. Leverage excludes U.S. Treasury Repo. Average TBA coupon is for the long TBA position only. Includes forward starting swaps not yet in effect as of reported period-end. Economic return (loss) on tangible common equity represents the sum of the change in tangible net book value per common share and dividends declared on common stock during the period over the beginning tangible net book value per common share. The implied yields for Treasury futures are calculated based on the "cheapest-to-deliver" security that can be delivered to satisfy the futures contract identified at the time the futures contract was initiated using data sourced from a third-party model. STOCKHOLDER CALLAGNC invites stockholders, prospective stockholders and analysts to attend the AGNC stockholder call on July 22, 2025 at 8:30 am ET. Interested persons who do not plan on asking a question and have internet access are encouraged to utilize the webcast at Those who plan on participating in the Q&A or do not have internet available may access the call by dialing (877) 300-5922 (U.S. domestic) or (412) 902-6621 (international). Please advise the operator you are dialing in for the AGNC Investment Corp. stockholder call. A slide presentation will accompany the call and will be available in the Investors section of the Company's website at Select the Q2 2025 Stockholder Presentation link to download the presentation in advance of the stockholder call. An archived audio of the stockholder call combined with the slide presentation will be available on the AGNC website after the call on July 22, 2025. In addition, there will be a phone recording available one hour after the call on July 22, 2025 through August 5, 2025. Those who are interested in hearing the recording of the presentation, can access it by dialing (877) 344-7529 (U.S. domestic) or (412) 317-0088 (international), passcode 8543380. For further information, please contact Investor Relations at (301) 968-9300 or IR@ ABOUT AGNC INVESTMENT in 2008, AGNC Investment Corp. (Nasdaq: AGNC) is a leading investor in Agency residential mortgage-backed securities (Agency MBS), which benefit from a guarantee against credit losses by Fannie Mae, Freddie Mac, or Ginnie Mae. We invest on a leveraged basis, financing our Agency MBS assets primarily through repurchase agreements, and utilize dynamic risk management strategies intended to protect the value of our portfolio from interest rate and other market risks. AGNC has a track record of providing favorable long-term returns for our stockholders through substantial monthly dividend income, with over $14 billion of common stock dividends paid since inception. Our business is a significant source of private capital for the U.S. residential housing market, and our team has extensive experience managing mortgage assets across market cycles. We use our website ( and AGNC's LinkedIn and X accounts to distribute information about the Company. Investors should monitor these channels in addition to our press releases, filings with the U.S. Securities and Exchange Commission ("SEC"), public conference calls and webcasts, as information posted through them may be deemed material. Our website, alerts and social media channels are not incorporated by reference into, and are not a part of, this document or any report filed with the SEC. To learn more about The Premier Agency Residential Mortgage REIT, please visit follow us on LinkedIn and X, and sign up for Investor Alerts. FORWARD LOOKING STATEMENTSThis press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Forward-looking statements are based on estimates, projections, beliefs and assumptions of management of the Company at the time of such statements and are not guarantees of future performance. Forward-looking statements involve risks and uncertainties in predicting future results and conditions. Actual results could differ materially from those projected in these forward-looking statements or from our historic performance due to a variety of important factors, including, without limitation, changes in monetary policy and other factors that affect interest rates, MBS spreads to benchmark interest rates, the forward yield curve, or prepayment rates; the availability and terms of financing; changes in the market value of the Company's assets; general economic or geopolitical conditions; liquidity and other conditions in the market for Agency securities and other financial markets; and legislative and regulatory changes that could adversely affect the business of the Company. Certain factors that could cause actual results to differ materially from those contained in the forward-looking statements are included in the Company's periodic reports filed with the Securities and Exchange Commission ("SEC"). Copies are available on the SEC's website, The Company disclaims any obligation to update or revise any forward-looking statements based on the occurrence of future events, the receipt of new information, or otherwise. USE OF NON-GAAP FINANCIAL INFORMATIONIn addition to the results presented in accordance with GAAP, the Company's results of operations discussed in this release include certain non-GAAP financial information, including "net spread and dollar roll income"; "economic interest income" and "economic interest expense"; and the related per common share measures and certain financial metrics derived from such non-GAAP information, such as "cost of funds" and "net interest spread." Net spread and dollar roll income available to common stockholders is measured as comprehensive income (loss) available (attributable) to common stockholders (GAAP measure) adjusted to: (i) exclude gains/losses on investment securities recognized through net income or other comprehensive income and gains/losses on derivative instruments and other securities (GAAP measures), (ii) exclude retrospective "catch-up" adjustments to premium amortization cost due to changes in projected CPR estimates and (iii) include interest rate swap periodic income/cost, TBA dollar roll income and other miscellaneous interest income/expense. As defined, net spread and dollar roll income available to common stockholders represents net interest income/expense (GAAP measure) adjusted to exclude retrospective "catch-up" adjustments to premium amortization cost due to changes in projected CPR estimates and to include TBA dollar roll income, interest rate swap periodic income/cost and other miscellaneous interest income/expense, less total operating expense (GAAP measure) and dividends on preferred stock (GAAP measure). By providing users of the Company's financial information with such measures in addition to the related GAAP measures, the Company believes users have greater transparency into the information used by the Company's management in its financial and operational decision-making. The Company also believes that it is important for users of its financial information to consider information related to the Company's current financial performance without the effects of certain transactions that are not necessarily indicative of its current investment portfolio performance and operations. Specifically, the Company believes the inclusion of TBA dollar roll income in its non-GAAP measures is meaningful as TBAs are economically equivalent to holding and financing generic Agency MBS using short-term repurchase agreements but are recognized under GAAP in gain/loss on derivative instruments in the Company's statement of operations. Similarly, the Company believes that the inclusion of periodic interest rate swap settlements in such measures, which are recognized under GAAP in gain/loss on derivative instruments, is meaningful as interest rate swaps are the primary instrument the Company uses to economically hedge against fluctuations in the Company's borrowing costs and inclusion of periodic interest rate swap settlements is more indicative of the Company's total cost of funds than interest expense alone. Finally, the Company believes the exclusion of "catch-up" adjustments to premium amortization cost is meaningful as it excludes the cumulative effect from prior reporting periods due to current changes in future prepayment expectations and, therefore, exclusion of such "catch-up" cost or benefit is more indicative of the current earnings potential of the Company's investment portfolio. However, because such measures are incomplete measures of the Company's financial performance and involve differences from results computed in accordance with GAAP, they should be considered as supplementary to, and not as a substitute for, results computed in accordance with GAAP. In addition, because not all companies use identical calculations, the Company's presentation of such non-GAAP measures may not be comparable to other similarly-titled measures of other companies. A reconciliation of GAAP comprehensive income (loss) to non-GAAP "net spread and dollar roll income" is included in this release. CONTACT:Investors - (301) 968-9300Media - (301) 968-9303 View original content: SOURCE AGNC Investment Corp. Sign in to access your portfolio
