Here are semiconductor stocks to watch in the stock market this week.
Tech stocks began Monday in positive fashion as the sector looked to regain momentum after slipping at the end of last week. Apple stock was lagging though after cutting iPhone prices in China.
Advanced Micro Devices stock has risen on expectations for continued market share gains in processors for PCs and servers.
As the United States grapples with inflation, renowned American economist Peter Schiff has accused the government, particularly the US Federal Reserve as one of its branches, of causing it, challenging the widely accepted viewpoint of rising salaries as the actual source of the price increases. Specifically, Schiff has challenged the narrative of increased salaries causing inflation, arguing that, instead, inflation can lead to higher nominal salaries, whereas pointing the finger at, in his view, the real culprit – the US government and the Fed, according to his X post on May 20. Indeed, Schiff has been warning about inflation for some time now, including last month, when he referred to this threat as “gravely understated” by those who are trying to curb inflation fears, stressing that the current situation was “just the tip of an inflation iceberg. At the same time, the prominent economist declared that a full-blow inflationary depression or ‘stagflation’ was coming that would shadow previous financial crises and make them look tame by comparison, calling it a recession “on steroids,” as Finbold reported on April 30. Moreover, recent data indicates that auto loan serious delinquency rates have surged to 2.8% in the first quarter of 2024, the highest level in nearly 15 years, or since 2010 – in the aftermath of the financial crisis, as US households continue to miss loan payments, reminiscent of past recessions. Meanwhile, Paul Dietrich, a veteran Wall Street analyst who accurately predicted the 2008 recession, has long warned about a potential downturn, pointing at several red flags, including unexpectedly high inflation in the first quarter of 2024 and increased market volatility. As he said: “The economy and the stock market have never seen anything like this in history. (…) Everything reminds me of the Dot-com bubble in 2001-2002. (…) Since the current deficit spending is unsustainable, it will end at some point. When it does, the effect will be brutal for jobs, the economy, and the global stock markets.” Interestingly, Schiff, a well-known Bitcoin (BTC) skeptic, has earlier acknowledged that Bitcoin holders are “right about the Fed and inflation,” arguing that other investors were largely unaware of the current financial crisis and the “far greater currency and sovereign debt crisis it will ultimately become.” In the meantime, Bitcoin and tech stocks like Nvidia (NASDAQ: NVDA), Advanced Micro Devices (NASDAQ: AMD), Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL), and Alphabet (NASDAQ: GOOGL) are among the market participants that have beaten inflation in the last 10 years. Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
On May 16, Wolfe Research announced its tactical decision to move off Nividia (NASDAQ: NVDA ) and onto Advanced Micro Devices (NASDAQ: AMD ) stock to benefit from AI. No one is more pro-Nvidia than I am.
Shares of AMD have risen more than 60% since last year, making them slightly overvalued. Intel is trading at a better price point and has shown promising signs of growth in its recent earnings.
Advanced Micro Devices has soared lately on high AI expectations. AMD saw a huge surge in revenue during the early days of the pandemic.
Whether consumer, tech, financial or healthcare, blue chip companies instill investor confidence based on their long-standing profitability and growth. This translates to greater resilience during market downturns as they can tap into deep capital pools and solid credit positions.
AMD stock rocketed higher but has given back all those gains so far in 2024. Underneath all of the AI talk, the chipmaker needs to be far more focused on raising profit margins.
AMD stock rose on a report that Microsoft plans to offer its cloud computing customers a platform on AMD artificial intelligence chips.
Advanced Micro (AMD) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
To be sure, Wolfe analyst Chris Caso still likes shares of Nvidia NVDA, +0.37% plenty, but he's now making “a tactical shift in priority” by adding Advanced Micro Devices Inc.'s AMD, +4.50% stock to Wolfe's Alpha List, which is its collection of “high-conviction” picks that could show meaningful outperformance over a 12-month span.