Low-Beta ETFs Gain Attention as JPMorgan Highlights Overcrowded AI Investments
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 18 2025
0mins
Should l Buy AMD?
Source: Benzinga
Market Volatility and ETF Relevance: As the U.S. stock market experiences turbulence, low volatility ETFs are gaining attention as a strategy to mitigate risk, particularly in light of extreme crowding in speculative stocks.
JPMorgan's Stock Recommendations: JPMorgan has identified several stocks, including Broadcom and AMD, that may face significant reversals, suggesting a shift towards low-volatility, cash-producing stocks for investors.
Characteristics of Low-Volatility ETFs: Funds like the Invesco S&P 500 Low Volatility ETF and iShares MSCI USA Min Vol Factor ETF focus on stocks with lower historical price variability, favoring sectors such as healthcare and consumer staples.
Investor Selectivity in AI Stocks: The trend towards low-volatility ETFs does not indicate a complete withdrawal from AI investments but reflects a more selective approach among investors regarding which AI stocks to support.
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Analyst Views on AMD
Wall Street analysts forecast AMD stock price to fall
33 Analyst Rating
25 Buy
8 Hold
0 Sell
Strong Buy
Current: 455.190
Low
210.00
Averages
289.13
High
377.00
Current: 455.190
Low
210.00
Averages
289.13
High
377.00
About AMD
Advanced Micro Devices, Inc. is a global semiconductor company. The Company is focused on high-performance computing and artificial intelligence (AI). Its segments include Data Center, Client and Gaming, and Embedded. Data Center segment includes AI accelerators, microprocessors (CPUs) for servers, graphics processing units (GPUs), accelerated processing units (APUs), data processing units (DPUs), Field Programmable Gate Arrays (FPGAs), and Adaptive system-on-Chip (SoC) products for data centers. Client and Gaming segment includes CPUs, APUs, chipsets for desktops and notebooks, discrete GPUs, and semi-custom SoC products and development services. Embedded segment includes embedded CPUs, APUs, FPGAs, system on modules (SOMs), and Adaptive SoC products. It markets and sells its products under the AMD trademark. Its products include AMD EPYC, AMD Ryzen, AMD Ryzen PRO, Virtex UltraScale+, among others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Data Center Growth: AMD's data center revenue reached $5.8 billion in Q1, marking a 57% year-over-year increase, indicating strong market demand, with expectations of accelerating growth at over 80% annually, potentially generating tens of billions in revenue.
- New Product Launch: AMD plans to release the MI450 series AI accelerators later this year, which are expected to deliver an unprecedented 36 times performance improvement within the integrated Helios data center architecture, further enhancing its competitive edge in the data center market.
- Customer Contracts: AMD has signed agreements with Meta and OpenAI to deploy 6 gigawatts of computing capacity over the next few years, reflecting the company's growing appeal among large clients and strengthening demand.
- Profitability Improvement: AMD's non-GAAP earnings per share reached $1.37 in Q1, a 43% year-over-year increase, and despite a P/E ratio of 92, nearly double that of Nvidia, there is still potential for upside in the next 18 months, attracting long-term investor interest.
See More
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- Pharmaceutical Stocks Rise: Pharmaceutical stocks are climbing amid the recent hantavirus outbreak, although officials state that the public health risk is low, indicating strong market confidence in the pharmaceutical sector, which may drive stock prices higher for related companies.
- Oil Price Fluctuations: Oil futures rose overnight following Trump's rejection of Iran's peace proposal, as investors worry that prolonged conflict will further strain crude supply, potentially leading to instability in the energy market and impacting the profitability of related firms.
- Google Stock Surge: Alphabet's stock has climbed over 160% in the past 12 months, making it the best-performing trillion-dollar U.S. tech company, reflecting strong market confidence in its artificial intelligence capabilities, which may attract more investor interest.
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See More
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- Oil Price Fluctuations: Oil prices rose overnight following Trump's rejection of Iran's peace proposal, as investors worry that prolonged conflict will further strain crude supply, potentially leading to instability in the energy market and affecting operational costs for related companies.
- Tech Stock Performance: Alphabet's stock has surged over 160% in the past 12 months, making it the best-performing trillion-dollar U.S. tech company, reflecting strong market confidence in its artificial intelligence capabilities, which may attract more investor interest in its future growth.
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- Profit Rebound: Rackspace reported Q1 revenue of $678.1 million and earnings of $0.30 per share, surpassing analysts' expectations of $660 million and a loss of $0.03, indicating a significant improvement in financial health that boosts market confidence.
- Stock Surge: Rackspace's stock soared over 210% last week, with gains exceeding 55% on Thursday and Friday, reaching a 52-week high, reflecting strong investor optimism regarding the company's return to profitability and its AI infrastructure strategy.
- Strategic Partnership: Rackspace and AMD have established a multi-year partnership to combine AMD's high-performance computing chips with Rackspace's cloud services, aiming to create a fully managed enterprise AI platform that simplifies the construction and management of AI systems for businesses.
- Market Sentiment: According to Stocktwits data, retail sentiment around RXT stock remains in the 'extremely bullish' territory, with investors expressing optimistic expectations for future price increases, further fueling market enthusiasm in the short term.
See More
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- Accelerating Revenue Growth: AMD reported $10.3 billion in revenue for Q1 2026, a 38% year-over-year increase, with the data center segment contributing $5.8 billion, reflecting a remarkable 57% growth that underscores the momentum in AI chip sales.
- New Product Launch: The upcoming MI450 series, set to launch by year-end, is expected to deliver 36 times the performance of its predecessor, integrated within the Helios data center architecture, potentially narrowing the gap with Nvidia in the market.
- Strong Customer Demand: AMD has secured agreements with Meta and OpenAI to deploy 6 gigawatts of computing capacity over the next few years, with CEO Lisa Su noting a continuous rise in inquiries from new customers, indicating robust demand for AI accelerators.
- Improved Profitability: AMD's non-GAAP earnings per share reached $1.37 in Q1, up 43% year-over-year, as the company benefits from strong pricing power amid data center GPU demand exceeding supply, enhancing its profit margins.
See More
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- Investment Scale: Cathie Wood's stake in AMD amounts to $551 million, reflecting strong confidence in its potential within AI infrastructure, as AMD can thrive as a robust second option alongside Nvidia without needing to surpass it.
- Product Integration: AMD is addressing the full AI infrastructure challenge by integrating GPUs, CPUs, and networking into cohesive systems, which allows customers to build comprehensive AI data center setups rather than just purchasing individual components.
- Market Outlook: Morgan Stanley raised AMD's price target from $255 to $360, indicating robust demand in the semiconductor market and highlighting the anticipated revenue drivers from MI355 GPUs and Helios rack systems this year.
- Strategic Positioning: Under CEO Lisa Su, AMD focuses on designing a wide range of digital semiconductors for PCs, gaming consoles, and data centers, particularly in the rapidly expanding AI market, showcasing significant growth potential.
See More
