Latest news with #AdvancedMicroDevices
Yahoo
21 hours ago
- Business
- Yahoo
Parnassus Core Equity Fund Added Advanced Micro Devices (AMD) on a Dip
Parnassus Investments, an investment management company, released the 'Parnassus Core Equity Fund' first quarter 2025 investor letter. A copy of the letter can be downloaded here. The Fund (Investor Shares) fell -2.44% (net of fees) in the quarter, outperforming the S&P 500 Index's -4.27% return. U.S. equities fell in the first quarter, showing a shift from the robust gains of the previous quarter. In addition, please check the fund's top five holdings to know its best picks in 2025. In its first-quarter 2025 investor letter, Parnassus Core Equity Fund highlighted stocks such as Advanced Micro Devices, Inc. (NASDAQ:AMD). Advanced Micro Devices, Inc. (NASDAQ:AMD) is a semiconductor company that operates through Data Center, Client, Gaming, and Embedded segments. The one-month return of Advanced Micro Devices, Inc. (NASDAQ:AMD) was 29.76%, and its shares lost 11.42% of their value over the last 52 weeks. On June 26, 2025, Advanced Micro Devices, Inc. (NASDAQ:AMD) stock closed at $143.68 per share, with a market capitalization of $232.963 billion. Parnassus Core Equity Fund stated the following regarding Advanced Micro Devices, Inc. (NASDAQ:AMD) in its Q1 2025 investor letter: "We initiated two positions in the Information Technology sector during the quarter: Advanced Micro Devices, Inc. (NASDAQ:AMD), a manufacturer of semiconductor devices and electronic components, and ServiceNow, which provides software for automating enterprise workflows, after significant share price drawdowns in both cases. As a result of these additions, our underweight in the sector lessened, and our positioning is closer to market weight. A close up of a complex looking PCB board with several intergrated semiconductor parts. Advanced Micro Devices, Inc. (NASDAQ:AMD) is in 19th position our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 97 hedge fund portfolios held Advanced Micro Devices, Inc. (NASDAQ:AMD) at the end of the first quarter, which was 96 in the previous quarter. In the first quarter Advanced Micro Devices, Inc.'s (NASDAQ:AMD) revenue increased 36% year-over-year to $7.4 billion. While we acknowledge the potential of Advanced Micro Devices, Inc. (NASDAQ:AMD) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains. In another article, we covered Advanced Micro Devices, Inc. (NASDAQ:AMD) and shared the list of stocks Jim Cramer recently discussed. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of AMD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. This article is originally published at Insider Monkey. 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
CNBC
21 hours ago
- Business
- CNBC
These overbought stocks need to cool off as the market trades back at record highs
Some stocks are due to cool down after this week's big market rally, according to one popular metric. The S & P 500 reached an all-time high and closed at a record Friday, marking an incredible turnaround after investors' more intense tariff and trade concerns have dissipated. Though President Donald Trump said that trade talks between Canada and the U.S . have been terminated, traders managed to look past that development and all three of the major averages ended the week on a strong note. Stocks that have soared during this rally could see a pullback in the coming weeks, however. We used the CNBC Pro Screener to find the most overbought and oversold stocks by measuring their 14-day relative strength index, or RSI. An RSI above 70 suggests a stock could be overbought and could see a near-term decline, while an RSI below 30 implies a stock is oversold and may bounce. Take a look at the overbought group below: Tech stocks and artificial intelligence beneficiaries are some of the most overbought names after this week's run-up. Jabil, a maker of electronic components and an Apple supplier, is the most overbought name this week with an RSI of 90.8. Shares jumped more than 5% this week and they touched a a fresh 52-week high on Friday. Earlier this month, the company lifted its full-year outlook for core earnings per share and net revenue. Microsoft , Netflix and chipmakers Advanced Micro Devices and Micron Technology also each have high RSIs, implying their shares could see a dip. Microsoft, which has an RSI of 79.1, saw its shares jump nearly 4% this week. Morgan Stanley this week increased its price target on the stock to $530 from $482, saying the firm sees the "yields on Microsoft's investments in generative AI becoming increasingly apparent." Wells Fargo also lifted its price target on Microsoft this week, citing "its early AI lead." Advanced Micro Devices saw a 12% gain this week. It's one of the stocks that has aided the S & P 500's comeback since the April low. Data storage stocks Western Digital and Seagate , which have also ridden the AI wave, have high RSIs of 88.6 and 84.8, respectively. Seagate shares have rallied 8% this week and nearly 64% year to date, benefiting from expected growth in storage demand and data centers. Other names that are overbought according to their RSI of roughly 80 are financials JPMorgan Chase & Co and Goldman Sachs . Here are the most oversold stocks on the Street, meanwhile: Food and beverage stocks Molson Coors , Conagra Brands and Campbell's are considered among the most oversold companies. Molson Coors is the most oversold with an RSI of 18.3. The stock lost 1.3% this week, and it's down more than 17% year to date. Bank of America downgraded the name to neutral from buy this week. The firm cited ongoing market share loss within the U.S. beer industry and said that the stock's "valuation reflects uncertainty." Other oversold stocks are retailers Ross Stores and Lululemon Athletica , which have RSIs of 24.3 and 29, respectively. Lululemon earlier this month exceeded fiscal first-quarter earnings expectations but cut its earnings guidance for the full year.
Yahoo
a day ago
- Business
- Yahoo
Have $1,000? These 2 Stocks Could Be Bargain Buys for 2025 and Beyond.
Reasonably valued growth stocks are still available in the high-octane tech sector. Advanced Micro Devices' growth prospects in the chip industry appear undervalued, with the stock trading at just 22 times 2026 earnings estimates. Dell shares trade at just 12 times forward earnings despite a growing backlog of orders for its AI servers. 10 stocks we like better than Advanced Micro Devices › Investors who are looking for stocks that could explode over the next few years should look for companies offering a balance of growth and value. There are attractive deals in the tech sector right now, particularly companies that are supplying mission-critical hardware for artificial intelligence (AI) infrastructure. If you have $1,000 you can tuck away in the market for at least five years, the following tech stocks trade at reasonable price-to-earnings (P/E) multiples that could support attractive shareholder returns. Shares of Advanced Micro Devices (NASDAQ: AMD) have soared 76% since hitting a 52-week low in April. The stock's gains are supported by strong demand for its graphics processing units (GPUs) used in data centers, as well as market share gains against Intel with its range of central processing units (CPUs) for servers and consumer PCs. The stock still has room to run in the near term. In the first quarter, AMD reported a year-over-year revenue increase of 36%, with adjusted earnings per share (EPS) surging 55%. Yet the stock is trading at a forward price-to-earnings (P/E) multiple of just 35 based on this year's consensus earnings estimate from Wall Street analysts. Using 2026 earnings estimates, the stock's earnings multiple drops further to 24, indicating that AMD's future growth could be significantly undervalued by investors. AMD expects to gain share this year with its EPYC server and Ryzen consumer CPUs. It also expects to gain share in the GPU market with strong demand for its Radeon graphics chips used for playing video games and its upcoming Instinct MI350 series accelerators for data centers. AMD is seeing such strong momentum in its business that management doesn't see near-term macroeconomic headwinds from tariffs or anything else impacting its outlook. Analysts expect AMD to report revenue growth of 23% for the full year. Looking ahead to 2028, Wall Street analysts expect AMD's earnings to reach $10.49. If the stock is trading at a P/E multiple of 30, that puts the stock at over $300, or more than double its recent share price. Shares of Dell Technologies (NYSE: DELL) are also on the move following the recent sell-off with the broader market during the first quarter. Dell's server business is cooking right now, which should gradually take the spotlight off its struggles in the PC market and send the stock higher over the next few years. Dell's revenue is roughly split between its infrastructure solutions (servers) and client solutions (PCs and peripherals), with total revenue up 5% year over year in Q1. Dell's infrastructure business is experiencing strong demand, with the company expecting to ship $7 billion worth of AI servers in Q2. This is a massive jump over the $1.8 billion shipped in Q1. It's a strong signal for Dell's growth trajectory that it is seeing surging demand across multiple industries. Dell noted new enterprise AI customers from web technology, financial services, education, entertainment, and manufacturing. As the leader in servers, this is pointing to a tremendous opportunity. The stock offers great value ahead of these attractive growth prospects. Despite Dell reporting a 17% year-over-year increase in earnings last quarter, largely due to improving margins in the infrastructure business, the stock is trading at a forward P/E of just 13. The opportunity in servers should fuel double-digit growth in earnings over the next few years. It's only a matter of time before Wall Street sees the value in Dell's stock and bids it up to a higher earnings multiple, further compounding the upside for investors. Assuming Dell meets the consensus earnings estimate of $11.77 in 2028 and the stock trades at 20 times earnings, that puts the stock at $235, representing a doubling of its recent share 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 $687,731!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $945,846!* Now, it's worth noting Stock Advisor's total average return is 818% — a market-crushing outperformance compared to 175% 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 June 23, 2025 John Ballard has positions in Advanced Micro Devices. The Motley Fool has positions in and recommends Advanced Micro Devices and Intel. The Motley Fool recommends the following options: short August 2025 $24 calls on Intel. The Motley Fool has a disclosure policy. Have $1,000? These 2 Stocks Could Be Bargain Buys for 2025 and Beyond. was originally published by The Motley Fool
Yahoo
a day ago
- Business
- Yahoo
Analyst Says AMD Stock Can ‘At Least Double' in the Next 12 Months
Michael Lee, the founder of Michael Lee Strategy, said in a recent program on Schwab Network that bearish sentiment has impacted AMD, but the stock remains positioned to benefit from AI in the long term. "I think it's, you know, if you have a 12-month time horizon, you're looking at at least a double from here. I really like the stock and the nature of these AI GPU games is that the demand far exceeds supply, and the problems that Advanced Micro Devices Inc (NASDAQ:AMD) has had is just getting that supply up and running to meet that demand. It's not quite in line with where the street is, and so they have hammered this stock and kind of lost all faith, and there's this overwhelming bearish sentiment that's been ongoing for a while, especially since February on everything AI." Lee said the company could face short-term headwinds amid tariffs and volatility, but it remains a key beneficiary of the technology growth trend. Photo by Kaleidico on Unsplash Advanced Micro Devices (NASDAQ:AMD) bulls believe the market should stop comparing the company's chips with Nvidia and focus on its data-center growth and its competitive edge over other players like Intel. Advanced Micro Devices (NASDAQ:AMD)'s strong growth in the data center segment is indeed impressive, driven by Instinct GPU shipments and strong sales of EPYC CPUs. Advanced Micro Devices (NASDAQ:AMD) will continue to benefit from organic growth catalysts in this segment despite the competition from Nvidia. According to Goldman Sachs Research, global data center demand could surge by 160% by 2030. In the U.S., data centers are projected to use 8% of total power by 2030, up from 3% in 2022. McKinsey estimates that adding the required U.S. capacity will need over $500 billion in infrastructure investment by the decade's end. Artisan Global Opportunities Fund stated the following regarding Advanced Micro Devices, Inc. (NASDAQ:AMD) in its Q4 2024 investor letter: 'Among our top detractors were Advanced Micro Devices, Inc. (NASDAQ:AMD), Novo Nordisk and Danaher. Shares of AMD declined in Q4, which capped off a frustrating year of stock performance that did not seem to match its fundamental progress. Regarding its AI opportunity, the company accomplished everything we had hoped for over the past 18 months. It successfully entered the market with its MI300 graphic processing unit (GPU) chip and raised its latest 2024 AI-related revenue guidance to $5.0 billion from $4.5 billion. However, its shares have experienced weakness for two primary reasons. First is the emergence of custom AI accelerator chip solutions from Broadcom and Marvell (a Q4 buy) as alternatives to the GPU solutions from NVIDIA and AMD. While this competitive threat is more significant than we had initially anticipated, we continue to be excited about AMD's opportunity moving forward. We believe the AI-related market will grow to $400 billion–$500 billion in the next three years (compared to $100 billion in 2024). We expect that NVIDIA's market share will fall from ~90%in2024to60%–80%overthesameperiodasitcedes market share to AMD (from5%in2024to10%–20%) and custom accelerator solutions (from 5% in 2024 to 10%–20%). Under these assumptions, we expect AI GPUs to double AMD's total 2024 sales. Second is cyclical struggles within other areas of its business. While data center revenues have more than doubled over the past two years, the gaming business is down more than 60%, and embedded (specialized chips found in various industrial and consumer products) is down20%.As its data center business continues to grow and the cyclical areas of its business bounce back, we expect AMD to deliver stronger earnings growth.' 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 extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey. 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
Business Insider
a day ago
- Business
- Business Insider
Fresh AI Euphoria Boosts AMD Stock Momentum
Advanced Micro Devices (AMD) may no longer be categorized as a traditional value investment; however, it remains a compelling high-growth opportunity within the AI sector, with strong return potential over the next year. Moreover, demand for AI products is mushrooming across all industries and geographies as companies seek to leverage AI to enhance their operations. As a supplier of AI-driven technology, AMD is well-positioned to capitalize on the growing demand. Confident Investing Starts Here: As a confident shareholder, I have set a 12-month price target of approximately $175, representing an estimated 30% upside. However, Wall Street analysts are not quite as bullish despite the stock's 19% climb year-to-date. Should a $175 target be achieved, I intend to strategically reduce my position and reallocate capital toward attractively valued equities with longer-term growth prospects. From a macroeconomic standpoint, several supportive factors continue to strengthen the bullish outlook for AMD. AMD's Rapid Return Resurgence Has Begun AMD is now trading above the 50-week moving average, with the 14-week Relative Strength Index (RSI) at 65. This indicates that the stock is being driven by the bulls again, and it warrants more cautious buying behavior despite a strong return horizon ahead. Investors who are ahead of the game would have bought this stock earlier in the year. Bullish sentiment for AMD stock is understandable. AMD's forward non-GAAP earnings per share (EPS) growth rate is nearly 30%, compared to just 10% for the sector. Also, the trailing 12-month non-GAAP price-to-earnings (P/E) ratio is 37, compared to 23 for the industry. That indicates a stark difference in growth and a very fair valuation compared to the broader industry. This robust growth is primarily fueled by accelerating demand in the artificial intelligence sector, where AMD plays a key role through its involvement in data center infrastructure, particularly with its graphics and central processing units. Management has identified 2026 as a pivotal year for profit realization, following years of strong AI-related revenue expansion. While much of this anticipated growth may now be reflected in the stock's valuation, shares do not appear overvalued, making AMD an attractive candidate for a long-term buy-and-hold strategy with the potential for sustained AI-driven returns. Subtle and Stark Macro Factors Influence AMD's Returns A key near-term catalyst for AMD's continued growth is the potential for interest rate cuts by the Federal Reserve. However, I recognize that an overly aggressive easing cycle could contribute to broader market overvaluation in 2026. Should a significant bull market materialize next year—as I believe is likely—I plan to actively manage my exposure by trimming positions. I may also consider entirely exiting my AMD holdings if the stock appears to have fully priced in several years of anticipated growth. Furthermore, China remains a significant risk. While I'm confident that U.S. diplomacy will prevail over escalations in trade tensions or hot wars evolving, any conflict in Taiwan could disrupt AMD's return horizon (and that of every tech stock) for some time. That's why a cash position to protect from geopolitically induced volatility is so important right now. As TipRanks data shows, AMD's cash position is robust with ~$3 billion in operating cash flo w and ~$2 billion in free cash. However, management has also been making the business more resilient, and Taiwan Semiconductor Manufacturing Company (TSM) is diversifying aggressively into the U.S. to mitigate the risk of being threatened by China. That significantly enhances AMD's supply chain security. Hopefully, China will play a diplomatic role. We have AMD's diversification into the EU to look forward to in the near term, as well as burgeoning opportunities in the Middle East with a new $10 billion arrangement with Saudi Arabia's HUMAIN. Looking longer-term, the Global South appears to be a promising growth climate, with India likely taking center stage. Is AMD a Buy, Hold, or Sell? On Wall Street, AMD stock has a consensus Moderate Buy rating based on 24 Buys, 10 Holds, and zero Sell ratings. AMD's average stock price target is $132.17, indicating an 8% downside potential over the next 12 months. Given the macroeconomic factors and the strong demand for AI, I don't think this is the end of AMD's near-term, elite return horizon. The company has also been buying back stock aggressively, with $2.24 billion worth repurchased in the last 12 months; this significantly improves shareholder value and shows management's conscientiousness. At the same time, $2.44 billion in total debt was issued over the same period, suggesting that management is likely trying to boost short-term sentiment to improve stock returns. That's a clever strategy, if you ask me. AMD Stock Still Has Room to Run When a stock transitions from being undervalued to fairly valued, the instinct may be to exit the position. However, as Charlie Munger—one of the most respected investors of our time—has noted, even modest overvaluation is not necessarily a reason to sell shares of an exceptional company. Long-term success often comes from weathering volatility while remaining focused on the broader upward trajectory. This perspective applies well to AMD. The AI boom continues to gain momentum, and AMD remains a central player in this transformative shift. A 12-month price target of $175 appears not only reasonable but also aligned with what could be considered fair value based on the company's medium-term growth outlook.
