SoftBank Group Shares Surge 16.5% Amid Tech Rally
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 52 minutes ago
0mins
Should l Buy AMD?
Source: CNBC
- Stock Surge: SoftBank Group's shares soared 16.5% on Thursday, marking its best single-day performance since 2020, reflecting strong investor response to the global artificial intelligence boom and solidifying its leadership in Japan's tech investment landscape.
- Market Recovery: The Japanese market reopened after an extended holiday, with the Nikkei 225 index hitting record highs due to a rally in global tech stocks, showcasing strong investor confidence particularly driven by semiconductor and AI-related companies.
- Industry Impact: The performance of Arm and OpenAI, closely tied to SoftBank, further boosted its stock price, as optimism around data center infrastructure demand grows, indicating a rapid increase in demand for AI inference and agentic systems.
- Long-term Outlook: AMD forecasts that the total addressable market for data center CPUs could reach $120 billion by 2030, growing over 35% annually, highlighting that the construction of AI infrastructure will be a key investment area, with SoftBank's role becoming increasingly significant.
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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: 355.260
Low
210.00
Averages
289.13
High
377.00
Current: 355.260
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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- Stock Surge: SoftBank Group's shares soared 16.5% on Thursday, marking its best single-day performance since 2020, reflecting strong investor response to the global artificial intelligence boom and solidifying its leadership in Japan's tech investment landscape.
- Market Recovery: The Japanese market reopened after an extended holiday, with the Nikkei 225 index hitting record highs due to a rally in global tech stocks, showcasing strong investor confidence particularly driven by semiconductor and AI-related companies.
- Industry Impact: The performance of Arm and OpenAI, closely tied to SoftBank, further boosted its stock price, as optimism around data center infrastructure demand grows, indicating a rapid increase in demand for AI inference and agentic systems.
- Long-term Outlook: AMD forecasts that the total addressable market for data center CPUs could reach $120 billion by 2030, growing over 35% annually, highlighting that the construction of AI infrastructure will be a key investment area, with SoftBank's role becoming increasingly significant.
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- Apple Chip Collaboration Potential: Apple is considering utilizing Intel's U.S. foundries for future iPhone and Mac chips, which is seen as an endorsement of Intel's manufacturing turnaround strategy and could further enhance Intel's market performance.
- AMD Strong Earnings: AMD reported quarterly revenue of $10.3 billion, a 38% year-over-year increase, with data center revenue reaching $5.8 billion, up 57%, indicating strong demand from enterprise customers for its EPYC processors and Instinct AI accelerators.
- Micron Market Value Surge: Micron's market value surpassed $700 billion for the first time, reflecting tight global supply of memory components driven by sustained AI-related demand, further solidifying its leadership position in the semiconductor industry.
- Chip Sector Rally: Stocks of Intel, AMD, and Micron all reached 52-week highs on Wednesday, as investor enthusiasm surged for chipmakers linked to AI infrastructure, boosting overall positive sentiment across the industry.
See More
Potential Semiconductor Sector Rebound Opportunities
- Semiconductor Sector Dynamics: According to Citrini Research's theory, investors should focus on semiconductor stocks that have not surged yet, particularly those with market caps above $300 million and trading at lower historical valuations, potentially offering profit opportunities.
- Intel's Recovery Signs: Intel reported a 7% revenue increase in its latest earnings report and guided for 11% growth in Q2, indicating market confidence in the semiconductor sector despite its growth numbers not being particularly strong, which has driven a rebound in its stock price.
- Wolfspeed's Financial Improvement: After reducing its debt burden by 70%, Wolfspeed, despite still being in the red, has seen its stock surge over the past month due to growth in its AI data center applications business, suggesting that high-risk stocks may still hold investment potential.
- Skyworks' Market Challenges: Skyworks reported essentially flat revenue growth in its most recent quarter and faces challenges from a weak smartphone market, although its potential growth in Edge AI could present future opportunities, making it a stock to watch for investors.
See More
Citrini Research Suggests Buying Semiconductor Laggards
- Investment Strategy for Laggards: Citrini Research suggests investing in semiconductor companies that have not surged yet, believing these firms trading at the lower end of historical valuation ranges could benefit from the upcoming AI boom, offering potential high returns for investors.
- Market Dynamics Analysis: Among 57 semiconductor companies with market caps above $300 million, only two have posted negative returns over the past year, while others like Intel and Micron have seen significant growth driven by AI-related demand, reflecting strong market confidence in the semiconductor sector.
- Wolfspeed's Financial Improvement: After reducing its debt burden by 70%, Wolfspeed has significantly improved its financial health, and despite a gross margin of -27%, growth in its AI data center applications has driven its stock surge over the past month, indicating potential returns from high-risk investments.
- Skyworks and Edge AI Prospects: Skyworks has struggled with flat revenue growth in the smartphone market, but with the rise of Edge AI, the company could benefit from the trend of integrating AI technologies into smart devices, potentially leading to new growth opportunities.
See More
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- Stock Surge: SoftBank Group's shares soared 16.5% on Thursday, marking its best single-day performance since 2020, reflecting strong investor response to the global artificial intelligence boom and solidifying its leadership in Japan's tech investment landscape.
- Market Recovery: The Japanese market reopened after an extended holiday, with the Nikkei 225 index hitting record highs due to a rally in global tech stocks, showcasing strong investor confidence particularly driven by semiconductor and AI-related companies.
- Industry Impact: The performance of Arm and OpenAI, closely tied to SoftBank, further boosted its stock price, as optimism around data center infrastructure demand grows, indicating a rapid increase in demand for AI inference and agentic systems.
- Long-term Outlook: AMD forecasts that the total addressable market for data center CPUs could reach $120 billion by 2030, growing over 35% annually, highlighting that the construction of AI infrastructure will be a key investment area, with SoftBank's role becoming increasingly significant.
See More
Iran-U.S. Peace Deal Hopes Boost Markets
- Peace Deal Prospects: The U.S. and Iran are reportedly close to a 14-point memorandum of understanding aimed at ending hostilities and establishing a framework for nuclear negotiations, which, despite lacking details, has raised market optimism and driven stock prices higher.
- Positive Market Reaction: Following the peace news, the S&P 500 and Nasdaq reached new records at 7,365.12 and 25,838.94 respectively, while Japan's Nikkei 225 surged above 62,000, reflecting investor optimism in the face of geopolitical tensions.
- Oil Price Volatility: U.S. crude futures fell below $100 for the first time since late April, closing at $95.08 per barrel, while international benchmark Brent dropped nearly 8% to $101.27, indicating market uncertainty regarding future supply and demand dynamics.
- Jet Fuel Shortage: Global jet fuel exports plummeted 30% to 1.3 million barrels per day in April, highlighting the impact of Middle Eastern supply disruptions on Asia and Europe, suggesting that despite rising hopes for peace, the energy crisis remains a significant concern.
See More
Japan's Nikkei Index Hits Record High Amid Market Optimism
- Nikkei Index Surge: Japan's Nikkei 225 Index surged 3.38% to an all-time high of 61,523.36 as markets reopened after holidays, reflecting strong optimism driven by robust technology earnings, which significantly boosts investor confidence.
- Broader Market Gains: The broader Topix Index climbed 2.02% to 3,803.95, indicating a positive overall market sentiment in Japan, as expectations for economic recovery grow, potentially attracting more capital inflows.
- Yen Strength Impact: Japanese markets responded to a stronger yen since last Friday, attributed to suspected intervention by Tokyo, which further enhances confidence in Japan's economic stability and may influence future monetary policy.
- International Developments: Iran is reviewing a U.S. proposal for peace, with President Trump noting positive discussions with Tehran, suggesting that improving international relations could foster a more favorable market environment and increase investor risk appetite.
See More
