Latest news with #chipindustry
Yahoo
3 days ago
- Business
- Yahoo
Will AMD Stock Go Parabolic After Aug. 5?
Key Points AMD is significantly behind Nvidia's data center technology. AMD's other business units are holding it back right now. 10 stocks we like better than Advanced Micro Devices › AMD (NASDAQ: AMD) has taken a back seat to its peer Nvidia (NASDAQ: NVDA) as it doesn't have nearly the data center dominance. AMD has often seemed to play second fiddle to its competitors, but sometimes this second-place position can still deliver market-crushing returns. On Aug. 5, AMD will release its quarterly earnings, and if it presents the right key points, AMD stock could experience a parabolic rise, increasing rapidly in a very short time frame. But is this realistic? Or has the growth already been priced into AMD's stock? AMD's diversity is also its weakness Compared to its peers, AMD is a much broader business. While Nvidia focuses solely on GPUs and products that support them, AMD manufactures GPUs and a wide range of other products, including CPUs and embedded processors. This product diversity limits upside, as AMD can't fully take advantage of the AI buildout because its technology is inferior to Nvidia's. However, if AI spending were to stop suddenly, AMD would be less harmed because it has other business units that might be performing well at the same time. With that in mind, AMD may be viewed as a "safer" investment; however, the chip industry is notoriously cyclical, so it still has a large potential for decline if the market sours. However, the market remains strong, and AMD projects robust growth for the second quarter. It expects revenue to be approximately $7.4 billion, representing 35% growth. That's incredibly strong growth compared to what the average company is putting up, but it's nowhere near what Nvidia is expected to grow for Q2, 50%. Once again, AMD's diversity is holding it back, which makes it appear to be a poor choice during periods when products like GPUs are in high demand. But, if the stock is priced right, a solid guidance beat could be enough to send AMD shares soaring. AMD's stock doesn't trade at a discount despite being in second place Currently, AMD's stock trades at 40 times forward earnings. AMD PE Ratio (Forward) data by YCharts That's a premium price tag for any business, regardless of whether it's expected to put up 35% growth in the quarter. This valuation is essentially the same as Nvidia's, which might lead investors to wonder why they would want to purchase shares of AMD when they can invest in a company in a nearly identical industry that's growing more quickly. I think it's a great question for investors to ask themselves, as I don't see the upside in owning AMD shares over Nvidia. Yes, if the data center buildout party comes to a screeching halt, AMD's sales would fall less than Nvidia's, but considering that data center revenue accounts for about half of AMD's total, it's not going to be much safer. Although I don't know how the market will react to AMD's earnings on Aug. 5, I think there's a far better chance that Nvidia will outperform AMD over the long term. As a result, I think investors are better off buying Nvidia at these levels, because if AMD reports a blowout quarter on Aug. 5, there's a good chance Nvidia will also rise significantly, given that they are two adjacent companies. Second-place AMD isn't close enough to first-place Nvidia to warrant owning shares, and investors should consider alternatives before buying AMD shares. Should you invest $1,000 in Advanced Micro Devices right now? Before you buy stock in Advanced Micro Devices, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 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 $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!* Now, it's worth noting Stock Advisor's total average return is 1,041% — a market-crushing outperformance compared to 183% 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 21, 2025 Keithen Drury has positions in Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices and Nvidia. The Motley Fool has a disclosure policy. Will AMD Stock Go Parabolic After Aug. 5? was originally published by The Motley Fool
Reuters
5 days ago
- Business
- Reuters
US startup xLight raises $40 million in race against China for key chip-making laser
PALO ALTO, California, July 22 (Reuters) - Silicon Valley startup xLight has raised $40 million, aiming to build the first prototype of a new class of laser that could shake up the global chip industry and reclaim U.S. leadership in a field that China is aggressively investing in. XLight's laser - based on the same technologies as massive particle accelerators used by U.S. national labs in cutting-edge physics research - will sit at the heart of what are known as extreme ultraviolet (EUV) lithography machines. EUV machines are the tools primarily responsible for the creation of smaller, faster chips. In a world where advances in fields such as AI are determined by how many chips Nvidia (NVDA.O), opens new tab and other chip companies can supply, xLight is aiming to help chip factories, called "fabs" in the industry, turn out more of the dinner-plate-sized silicon "wafers" that contain advanced chips more quickly and cheaply. "This is the most expensive tool in the fab. It's what drives the cost of the wafer more than any other tool in the fab, and it's what drives capacity more than any other tool in the fab," Nicholas Kelez, CEO of xLight, said at the company's Palo Alto headquarters. XLight declined to disclose its valuation. It expects to have an operational prototype in 2028. The EUV machines themselves took the chip industry decades to develop, and Europe's ASML ( opens new tab is currently the world's only supplier. ASML and xLight do not have a business partnership, but technical leaders at ASML have provided xLight with the requirements a laser must meet to be considered for use in ASML's machines. The U.S. government has worked across multiple presidential administrations to stop EUV machines from being sent to China, with one official calling it the "single most important export control" held by the U.S. and Europe. China has responded by pouring resources into the field, with a close manufacturing partner of national champion Huawei Technologies ( claiming breakthroughs in developing its own EUV laser and more than a dozen research papers appearing at international conferences chasing the same technological path as xLight. A U.S.-based firm named Cymer perfected the first EUV laser technology and was scooped up by ASML more than a decade ago for $2.5 billion, helping create ASML's dominant position in the market. "There was a terrible mistake made giving Cymer the ability to become a European-owned and controlled company," said Pat Gelsinger, former CEO of Intel (INTC.O), opens new tab who now serves as executive chairman of xLight's board and is a general partner at Playground Global, one of xLight's investors. Many of xLight's prototype components will come from U.S. national labs as xLight works to build a supply chain in the U.S. and allied countries. "We can build that here, or it can be built elsewhere. China is investing heavily in this space. There's an extraordinary backstory here that says, 'Let's get this one right,'" Gelsinger said. The financing round was led by Playground Global and joined by Boardman Bay Capital Management. Morpheus Ventures, Marvel Capital, and IAG Capital Partners also joined the round. (This July 22 story has been corrected to clarify that xLight and ASML do not have a formal business partnership, in paragraph 7)
Yahoo
22-07-2025
- Business
- Yahoo
US startup xLight raises $40 million in race against China for key chipmaking laser
By Stephen Nellis PALO ALTO, California (Reuters) -Silicon Valley startup xLight has raised $40 million, aiming to build the first prototype of a new class of laser that could shake up the global chip industry and reclaim U.S. leadership in a field that China is aggressively investing in. XLight's laser - based on the same technologies as massive particle accelerators used by U.S. national labs in cutting-edge physics research - will sit at the heart of what are known as extreme ultraviolet (EUV) lithography machines. EUV machines are the tools primarily responsible for the creation of smaller, faster chips. In a world where advances in fields such as AI are determined by how many chips Nvidia and other chip companies can supply, xLight is aiming to help chip factories, called "fabs" in the industry, turn out more of the dinner-plate-sized silicon "wafers" that contain advanced chips more quickly and cheaply. "This is the most expensive tool in the fab. It's what drives the cost of the wafer more than any other tool in the fab, and it's what drives capacity more than any other tool in the fab," Nicholas Kelez, CEO of xLight, said at the company's Palo Alto headquarters. XLight declined to disclose its valuation or precisely when the prototype will be launched. 'TERRIBLE MISTAKE' The EUV machines themselves took the chip industry decades to develop, and Europe's ASML, which xLight is partnering with on its prototype, is currently the world's only supplier. The U.S. government has worked across multiple presidential administrations to stop EUV machines from being sent to China, with one official calling it the "single most important export control" held by the U.S. and Europe. China has responded by pouring resources into the field, with a close manufacturing partner of national champion Huawei Technologies claiming breakthroughs in developing its own EUV laser and more than a dozen research papers appearing at international conferences chasing the same technological path as xLight. A U.S.-based firm named Cymer perfected the first EUV laser technology and was scooped up by ASML more than a decade ago for $2.5 billion, helping create ASML's dominant position in the market. "There was a terrible mistake made giving Cymer the ability to become a European-owned and controlled company," said Pat Gelsinger, former CEO of Intel who now serves as executive chairman of xLight's board and is a general partner at Playground Global, one of xLight's investors. Many of xLight's prototype components will come from U.S. national labs as xLight works to build a supply chain in the U.S. and allied countries. "We can build that here, or it can be built elsewhere. China is investing heavily in this space. There's an extraordinary backstory here that says, 'Let's get this one right,'" Gelsinger said. The financing round was led by Playground Global and joined by Boardman Bay Capital Management. Morpheus Ventures, Marvel Capital, and IAG Capital Partners also joined the round.
Yahoo
22-07-2025
- Business
- Yahoo
US startup xLight raises $40 million in race against China for key chipmaking laser
By Stephen Nellis PALO ALTO, California (Reuters) -Silicon Valley startup xLight has raised $40 million, aiming to build the first prototype of a new class of laser that could shake up the global chip industry and reclaim U.S. leadership in a field that China is aggressively investing in. XLight's laser - based on the same technologies as massive particle accelerators used by U.S. national labs in cutting-edge physics research - will sit at the heart of what are known as extreme ultraviolet (EUV) lithography machines. EUV machines are the tools primarily responsible for the creation of smaller, faster chips. In a world where advances in fields such as AI are determined by how many chips Nvidia and other chip companies can supply, xLight is aiming to help chip factories, called "fabs" in the industry, turn out more of the dinner-plate-sized silicon "wafers" that contain advanced chips more quickly and cheaply. "This is the most expensive tool in the fab. It's what drives the cost of the wafer more than any other tool in the fab, and it's what drives capacity more than any other tool in the fab," Nicholas Kelez, CEO of xLight, said at the company's Palo Alto headquarters. XLight declined to disclose its valuation or precisely when the prototype will be launched. 'TERRIBLE MISTAKE' The EUV machines themselves took the chip industry decades to develop, and Europe's ASML, which xLight is partnering with on its prototype, is currently the world's only supplier. The U.S. government has worked across multiple presidential administrations to stop EUV machines from being sent to China, with one official calling it the "single most important export control" held by the U.S. and Europe. China has responded by pouring resources into the field, with a close manufacturing partner of national champion Huawei Technologies claiming breakthroughs in developing its own EUV laser and more than a dozen research papers appearing at international conferences chasing the same technological path as xLight. A U.S.-based firm named Cymer perfected the first EUV laser technology and was scooped up by ASML more than a decade ago for $2.5 billion, helping create ASML's dominant position in the market. "There was a terrible mistake made giving Cymer the ability to become a European-owned and controlled company," said Pat Gelsinger, former CEO of Intel who now serves as executive chairman of xLight's board and is a general partner at Playground Global, one of xLight's investors. Many of xLight's prototype components will come from U.S. national labs as xLight works to build a supply chain in the U.S. and allied countries. "We can build that here, or it can be built elsewhere. China is investing heavily in this space. There's an extraordinary backstory here that says, 'Let's get this one right,'" Gelsinger said. The financing round was led by Playground Global and joined by Boardman Bay Capital Management. Morpheus Ventures, Marvel Capital, and IAG Capital Partners also joined the round.
Yahoo
22-07-2025
- Business
- Yahoo
US startup xLight raises $40 million in race against China for key chipmaking laser
By Stephen Nellis PALO ALTO, California (Reuters) -Silicon Valley startup xLight has raised $40 million, aiming to build the first prototype of a new class of laser that could shake up the global chip industry and reclaim U.S. leadership in a field that China is aggressively investing in. XLight's laser - based on the same technologies as massive particle accelerators used by U.S. national labs in cutting-edge physics research - will sit at the heart of what are known as extreme ultraviolet (EUV) lithography machines. EUV machines are the tools primarily responsible for the creation of smaller, faster chips. In a world where advances in fields such as AI are determined by how many chips Nvidia and other chip companies can supply, xLight is aiming to help chip factories, called "fabs" in the industry, turn out more of the dinner-plate-sized silicon "wafers" that contain advanced chips more quickly and cheaply. "This is the most expensive tool in the fab. It's what drives the cost of the wafer more than any other tool in the fab, and it's what drives capacity more than any other tool in the fab," Nicholas Kelez, CEO of xLight, said at the company's Palo Alto headquarters. XLight declined to disclose its valuation or precisely when the prototype will be launched. 'TERRIBLE MISTAKE' The EUV machines themselves took the chip industry decades to develop, and Europe's ASML, which xLight is partnering with on its prototype, is currently the world's only supplier. The U.S. government has worked across multiple presidential administrations to stop EUV machines from being sent to China, with one official calling it the "single most important export control" held by the U.S. and Europe. China has responded by pouring resources into the field, with a close manufacturing partner of national champion Huawei Technologies claiming breakthroughs in developing its own EUV laser and more than a dozen research papers appearing at international conferences chasing the same technological path as xLight. A U.S.-based firm named Cymer perfected the first EUV laser technology and was scooped up by ASML more than a decade ago for $2.5 billion, helping create ASML's dominant position in the market. "There was a terrible mistake made giving Cymer the ability to become a European-owned and controlled company," said Pat Gelsinger, former CEO of Intel who now serves as executive chairman of xLight's board and is a general partner at Playground Global, one of xLight's investors. Many of xLight's prototype components will come from U.S. national labs as xLight works to build a supply chain in the U.S. and allied countries. "We can build that here, or it can be built elsewhere. China is investing heavily in this space. There's an extraordinary backstory here that says, 'Let's get this one right,'" Gelsinger said. The financing round was led by Playground Global and joined by Boardman Bay Capital Management. Morpheus Ventures, Marvel Capital, and IAG Capital Partners also joined the round. 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
