Advanced Micro Devices (AMD)

Does not shares in this business. Has focused on other aspects of this sector. Company under pressure compared to Nvidia. Prefers "picks and shovels" style business. 

Technically attractive, as stock's fallen a good amount from recent highs by about 38%. Trading near 200-day MA. He's picking away at it.

The reaction is normal; shares were overbought. We're seeing de-celeration of exposure to semis after quarters of growing it. He's reduced his exposure in semis overall. Shares are -20% YTD, but they've moved 60% higher the past year.

Obviously, they've benefited from AI, but now we're seeing a rollover among tech names. Best to wait and see after earnings season. It's too early to chase this after it's come down. Overall, he likes AMD.

Be disciplined and sell some shares, because this has run up 73% in the past year. Trim.

After a sharp 5-month rally, AMD has pulled since early March. Nvidia is the elephant in the room as AMD trails. Nvidia hopes its open-source product will growth differently from Nvidia. It's a gamble he wouldn't take.

Recent stock run up has created high valuation. Very good trend overall - but stock is expensive. Over the long term, will be a good investment. Other names in sector available at cheaper valuations (for short term investors). Overall is a quality name. 

Great company long-term. Expensive, hard to buy with new money. His core thesis is that it will gain market share at expense of INTC. As long as that happens, will continue to work. Competing with NVDA, the leader, on chips; will have some success, but NVDA remains dominant.

Companies don't want to wholly depend on NVDA, so they're willing to work with other players. There can be multiple winners, but catching NVDA will be difficult.

A bit of a show-me story. 

NVDA had a tremendous run, so he took the position size down because it got too large. It's one you have to own as a proxy for building the power to build the models for machine learning. A generation ahead of anyone else in chip architecture and software. Prefers it to AMD.

It's fallen to its 50-day moving average. Whereas Nvidia is overbought, AMD is neutral and slightly better technicals. Long term growth is 34%. 

Both are leaders in chips and their packaging. CEOs are cousins, must be something in the water :)  Recently sold AMD, it had a rollover, so looks more attractive. 

NVDA is still fairly evenly priced. 12-month price target of $970. If you ever get the chance, pick up south of $850, and certainly toward $800 would be a great spot. He's much more skewed to this than to AMD.

AMD is the company to compete with NVDA. The current pullback is due to short-term traders who have made their money and are moving on. If you're long term, for sure hold on.

AMD belongs in the semis centre of the universe. It's 7% off its high. Take some profits if you are overweight a semis name.