Advanced Micro Devices (AMD)

They just reported a messy quarter: they beat top and bottom, but guided lightly and not great. Few chip companies are winning, except Nvidia.

An amazing CEO. They just reported: gaming was weak and their revenue forecast wasn't as high as the street's but not terrible. Catch-up to Nvidia trade? By the time they catch up, will we need all these chips anyway? It's a tall order.

They beat, but forecast was weak. AMD is puzzling though it isn't broken. He is concerned, but isn't panicking.

It reports tomorrow.  They just bought ZT Systems to compete with Nvidia, but plan to sell its hardware component. But suppose they don't? Will the stock got dinged?

It is kind of into a downtrend so he is not buying. However if he sees a breakout he would buy.

Still really likes it here. Chips will continue to drive things forward through automation and AI. These growth stocks move more aggressively, so when it reaches former or new highs, you may want to take some profits.

Will probably go higher, and to the detriment of INTC. 12-month price target of $195, just below the peak earlier this year. Well-managed designer. Very innovative. Not in his fund, but in separately managed accounts.

He bought this during the July sell-off, down 40% from its highs currently and is the third-worst-performing chipmaker in the S&P. Their fundamentals haven't changed. AMD is a close second to Nvidia. Demand for their AI chips is strong. They raise predictions for demand for these chips from $2 billion for 2024 to $3.5 billion and in late July to $4.5 billion. Their last quarter boasted a modest top and bottom line beat with better than expected guidance. The street doesn't give them credit for 2 deals last summer for ZT Systems and an AI company which will help AMD close the gap with Nvidia. He firmly believes in the CEO and says this is a strong buy the dip.

Yes, maintain your core position in Nvidia, but also add to peers like this and AMD. Coming into this quarter, AMD was trailing Broadcom, so he saw an opportunity.

Chips are a secular growth story, but AMD's problem is that Nvidia is so dominant. The CEO is doing a great job and their products will do very well in the CPU business. AMD had turned around, no longer terribly run nor cyclical. But there will be more than one player in the AI space and AMD will do better than, say, Intel.

Sold, and put proceeds into the modelling guys and into NVDA. NVDA's incorporating software into its chips has created another moat/barrier to AMD. Longer timeframe for them to become competitive with NVDA.

Ranks 8/10 fundamentally. Has done well, still sees upside. Usually with an acquisition, short-term pullback in the price before stock rallies back to where it was. That would be a great entry point. Great job pivoting business models. WFC raised price target to $205 with an Overweight weighting.

Can't own them all. Likes it at these levels. She owns QCOM instead.

Based on three previous dips in Dec. 2018, Q1-2020 and 2022, a two-day trend is not a sell-off. In 2022, NVDA corrected 70%. There's a lot going on geopolitically, namely the US election, so wait and see. The problem with NVDA is it's heavily traded--everybody loves. AMD is safer with less volatility. For a trade, buy NVDA on a dip, but he's sitting on both names now, waiting.

Second-place to NVDA, but a bit cheaper and less loved. In general, the semi space is quite expensive at this point. Look for opportunities, such as today with the NASDAQ coming down, to buy a bit cheaper.