Monday's ETF Movers: SPXL, APIE
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 24 2025
0mins
Should l Buy AMD?
Source: NASDAQ.COM
ETF Performance: The ActivePassive International Equity ETF is down approximately 1.5%, with notable declines in shares of James Hardie Industries (down 18.7%) and Jinkosolar Holding (down 5.6%).
Author's Perspective: The opinions expressed in the article are those of the author and do not necessarily represent Nasdaq, Inc.
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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: 203.770
Low
210.00
Averages
289.13
High
377.00
Current: 203.770
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.
French AI Startup Mistral Secures $830 Million in Debt Financing
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- Infrastructure Investment Plans: Mistral aims to establish a data center near Paris by 2025 and achieve 200 MW of computing capacity across Europe by the end of 2027, demonstrating its ambition in AI infrastructure to meet the surging demand from governments, enterprises, and research institutions for customized AI environments.
- Market Competition Landscape: While Mistral has become the best-funded large language model (LLM) builder in Europe with a total funding of $2.9 billion, this figure pales in comparison to U.S. rivals like OpenAI, which has raised $180 billion, highlighting the global imbalance in AI funding.
- Banking Support Background: The financing was supported by a consortium of seven global banks, including Bpifrance and BNP Paribas, indicating strong confidence from financial institutions in Mistral's future growth and providing robust funding support in the competitive AI market.
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- Market Share Expansion: The Arm AGI CPU is specifically optimized for AI operations in data centers, featuring 64 CPUs and 8,700 cores, and has already attracted interest from tech giants like Meta and Cloudflare, showcasing its competitive edge in high-performance computing.
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See More
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- Robust Revenue Growth: In the third quarter of fiscal 2026, Arm generated $1.2 billion in revenue, a 26% year-over-year increase, with a gross margin exceeding 97%, showcasing solid financial performance despite high R&D expenditures that limited adjusted EPS growth to 10%.
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Stock Performance: Companies like Rivian Automotive and Tesla are under scrutiny, with Rivian showing quiet performance while Tesla faces regulatory challenges, impacting investor sentiment and stock prices.
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See More
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- Significant Financing: French AI startup Mistral has secured $830 million in debt financing to build a data center powered by 13,800 Nvidia GB300 GPUs, which is set to become operational in Q2 this year, significantly enhancing its capabilities in training and inference services for AI models.
- Infrastructure Investment Plans: Mistral aims to establish a data center near Paris by 2025 and achieve 200 MW of computing capacity across Europe by the end of 2027, demonstrating its ambition in AI infrastructure to meet the surging demand from governments, enterprises, and research institutions for customized AI environments.
- Market Competition Landscape: While Mistral has become the best-funded large language model (LLM) builder in Europe with a total funding of $2.9 billion, this figure pales in comparison to U.S. rivals like OpenAI, which has raised $180 billion, highlighting the global imbalance in AI funding.
- Banking Support Background: The financing was supported by a consortium of seven global banks, including Bpifrance and BNP Paribas, indicating strong confidence from financial institutions in Mistral's future growth and providing robust funding support in the competitive AI market.
See More
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- Market Repricing of AI Holdings: Morgan Stanley's Global Investment Committee highlights a shift from AI 'builders' to 'adopters,' indicating that infrastructure providers and chip companies face risks of repricing, while companies leveraging AI to enhance productivity may achieve higher valuations.
- Software Sector Sell-off: As market focus shifts, the software sector has experienced significant sell-offs, with investors questioning the profitability of unprofitable AI companies, leading to a decline in both good and bad companies' stock prices, reflecting a reassessment of pricing power.
- Resilience of Semiconductor Industry: Despite the software sector's downturn, the semiconductor industry remains robust, as evidenced by the divergence of the Russell 1000 Semiconductor Index from the software sector, indicating sustained demand for physical AI infrastructure, with data center cooling companies reporting record backlogs.
- Building Future Portfolios: A successful AI portfolio should be more diversified, focusing on infrastructure companies like Vertiv and Equinix, which play critical roles in meeting AI demand by providing essential cooling and connectivity services, ensuring revenue visibility even amid market sentiment fluctuations.
See More
Ark Invest Significantly Reduces Tech Holdings
- Meta Platforms Reduction: Ark Invest sold 76,622 shares of Meta across multiple ETFs, valued at approximately $42 million, indicating a loss of confidence amid market fluctuations and a $6 million product liability verdict against the company.
- NVIDIA Position Cut: Ark reduced its NVIDIA holdings by 154,441 shares, totaling around $26.6 million, aligning with concerns over potential overvaluation in AI-centric firms, which could lead to significant market corrections.
- AMD and TSMC Sales: Ark sold 38,245 shares of AMD and 15,696 shares of TSMC, valued at approximately $7.8 million and $5.1 million respectively, reflecting challenges in the semiconductor industry, including rising prices and production capacity constraints.
- Alphabet and Netflix Cuts: Ark reduced its stake in Alphabet by 9,046 shares and Netflix by 6,775 shares, valued at approximately $2.5 million and $632,243 respectively, with Alphabet facing legal challenges and Netflix raising subscription prices due to content expansion.
See More
Arm Holdings Enters Chipmaking with AGI CPU Launch
- Revenue Growth Forecast: Arm Holdings anticipates that its newly launched Arm AGI CPU will drive annual revenue to $15 billion by fiscal 2031, representing over fivefold growth from its current $1.2 billion, indicating strong demand and potential profitability in the AI market.
- Market Share Expansion: The Arm AGI CPU is specifically optimized for AI operations in data centers, featuring 64 CPUs and 8,700 cores, and has already attracted interest from tech giants like Meta and Cloudflare, showcasing its competitive edge in high-performance computing.
- Stock Price Potential: With Arm's current stock price around $157, if it achieves an EPS of $9 in fiscal 2031, applying a conservative P/E ratio of 73 could see the stock soar to $657, reflecting a 318% increase and indicating investor optimism about its future growth.
- R&D Investment Returns: Arm's significant investment in R&D is paying off, with a 26% year-over-year revenue increase in Q3 and a gross margin exceeding 97%, laying a solid foundation for its future chip manufacturing business and enhancing its market competitiveness.
See More
Arm Holdings Stock Surges 200% Post-IPO with Ambitious Growth Plans
- Strong IPO Performance: Arm Holdings went public on September 14, 2023, and its stock has surged over 200% since then, significantly outpacing the S&P 500's 45% gain during the same period, indicating strong market confidence in its growth potential.
- Robust Revenue Growth: In the third quarter of fiscal 2026, Arm generated $1.2 billion in revenue, a 26% year-over-year increase, with a gross margin exceeding 97%, showcasing solid financial performance despite high R&D expenditures that limited adjusted EPS growth to 10%.
- AI Chip Launch: Arm announced the debut of its AGI CPU, designed specifically for data centers and featuring 64 CPUs with 8,700 cores, which is expected to drive annual revenue growth to $15 billion over the next five years, highlighting its competitive strength in the AI sector.
- Optimistic Future Outlook: Management forecasts total revenue of $25 billion by fiscal 2031, with an EPS target of $9, suggesting a potential stock price increase of 318% to $657, reflecting the market's optimistic expectations for its long-term growth trajectory.
See More
MarketBeat Weekly Recap – March 23 to March 27
Market Trends: Following recent uncertainty, stocks have pulled back, with the Trump administration's pause in hostilities with Iran initially easing investor anxiety, but rising energy prices and inflation concerns are complicating the market outlook.
Investment Opportunities: Analysts are highlighting potential opportunities in various sectors, including energy stocks and companies like Advanced Micro Devices (AMD), which is expected to see growth due to strong institutional buying and planned product launches.
Stock Performance: Companies like Rivian Automotive and Tesla are under scrutiny, with Rivian showing quiet performance while Tesla faces regulatory challenges, impacting investor sentiment and stock prices.
Consumer Sector Insights: Retail stocks, particularly Gap and Macy's, are experiencing mixed reactions post-earnings reports, with some showing recovery while others face caution from investors regarding their future strategies.
See More
