Investors Quietly Reduce Exposure to Semiconductor Stocks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 hours ago
0mins
Should l Buy AMD?
Source: Benzinga
- Valuations at a Tipping Point: Despite significant gains from high-flying stocks like Nvidia (NASDAQ:NVDA) and AMD (NASDAQ:AMD), their stock prices are beginning to exceed the fundamentals, raising investor concerns about growth sustainability and potentially prompting a shift to less risky sectors.
- Earnings Trends Signal Caution: While quarterly reports from major chipmakers show continued revenue growth, guidance for upcoming quarters is more tempered, particularly as Intel (NASDAQ:INTC) faces execution challenges on new process nodes, which may impact its near-term competitiveness and lead investors to rebalance portfolios.
- Macro Factors Shaping Sentiment: Rising interest rates and the potential for tighter monetary policy increase the opportunity cost of holding high-multiple growth stocks, especially in the semiconductor sector, which is sensitive to future earnings growth, leading investors to navigate between high expectations and moderate growth.
- Sector Rotation Trends: Investors are increasingly drawn to sectors like energy, consumer staples, and healthcare, where earnings are less sensitive to economic swings and cash flows are more reliable, indicating a shift in focus from semiconductor stocks after years of tech-led gains, emphasizing risk management and portfolio balance.
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Analyst Views on AMD
Wall Street analysts forecast AMD stock price to rise
33 Analyst Rating
25 Buy
8 Hold
0 Sell
Strong Buy
Current: 207.320
Low
210.00
Averages
289.13
High
377.00
Current: 207.320
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, graphics and visualization technologies. Its segments include Data Center, Client and Gaming, and Embedded. Data Center segment includes artificial intelligence (AI) accelerators, microprocessors (CPUs) for servers, graphics processing units (GPUs), accelerated processing units (APUs), data processing units (DPUs), Field Programmable Gate Arrays (FPGAs), smart network interface Cards (SmartNICs) 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, GPUs, 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+, and 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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