27.15 -0.15 (-0.55%)
Pre-market: 5:52AM EDT
|Bid||27.09 x 1000|
|Ask||27.21 x 1000|
|Day's range||26.92 - 28.52|
|52-week range||9.04 - 34.14|
|Beta (3Y Monthly)||4.06|
|PE ratio (TTM)||94.46|
|Earnings date||24 Oct 2018|
|Forward dividend & yield||N/A (N/A)|
|1y target est||25.67|
Advanced Micro (AMD) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
In the previous part of this series, we saw that Intel’s (INTC) delay in the launch of the 10 nm (nanometer) node could put it behind rival Advanced Micro Devices (AMD) and Taiwan Semiconductor Manufacturing Co. (or TSMC) (TSM) in terms of technology. For years, Intel has been the leader in the manufacturing technology node. It was this technological advantage that helped Intel gain market share and command a high price for its products.
The first half was strong for Intel’s (INTC) DCG (Data Center Group). Demand outlook seems strong in the second half. Gartner estimates the worldwide public cloud computing market to grow 21.4% YoY (year-over-year) to $186.4 billion in 2018. The growth in cloud computing would drive demand for Intel’s high-performance Xeon Scalable server CPUs (central processing units).
In the previous part of this series, we saw that Intel (INTC) launched it ninth-generation Core processors even though it’s facing yield issues on its 10 nm (nanometer) node. Intel has already delayed the launch of its 10 nm products from the 2016 holiday season to the 2019 holiday season, allowing rivals Taiwan Semiconductor Manufacturing (or TSMC) (TSM) and Samsung (SSNLF) to go ahead of it in terms of manufacturing technology. With the 7 nm node, AMD has tweaked its strategy and is bringing server CPUs first, which could be followed by client CPUs. On the other hand, Intel could launch its client CPUs first and then server CPUs, although the gap between the two launches would be short due to delays in the 10 nm node.
Intel (INTC) has been transitioning to the data-centric business, and DCG (Data Center Group) is its most profitable business segment, growing double-digit YoY (year-over-year). Intel’s DCG is seeing strong demand from the Cloud and Communications Service Providers as they prepare for AI and 5G. It’s also seeing growth in the Enterprise segment as companies increasingly adopt analytics, which is increasing their data-intensive workloads.
In the first part of this series, we saw that Intel (INTC) has been transforming its business from a PC-centric company to a data-centric company. In order to make money from the declining PC market, it has refined its PC strategy to focus on three high-end PC segments: mobile, gaming, and commercial. All three segments have diverse power and performance requirements, so Intel designed a PC portfolio that caters to these segments.
Although Intel (INTC) has been shifting to its data-centric business, PC is its biggest segment. PC contributes over 50.0% toward revenues and over 60.0% toward operating income. The CCG (Client Computing Group) offers PC CPUs (central processing units) and smartphone modems and competes with Advanced Micro Devices’ (AMD) Ryzen CPUs and Qualcomm’s (QCOM) modems.
The major indexes extended gains Tuesday afternoon in a broad advance, and the Nasdaq composite and S&P 500 today have a reason to feel better about their rebounds.
Intel (INTC) was surrounded by technical, competitive, and macro headwinds in the first nine months of 2018. Those headwinds started to clear one by one in October.
Intel (INTC), the PC and server CPU (central processing unit) leader, started 2018 with the disclosure of chip design flaws Spectre and Meltdown. While Intel was working out a solution for these flaws, it announced a delay in the launch of its 10 nm (nanometer) products to the 2019 holiday season. Intel announced the abrupt resignation of its CEO Brian Krzanich and acknowledged that it would face a shortage of CPUs in the second half of 2018.
Intel (INTC) completed 50 years in the business in 2018. Five years ago, with changing trends, the company started a multiyear transformation from a PC-centric company to a data-centric company. The transformation increased Intel’s data-centric revenue contribution from 33% to 50%.
Intel (INTC) has been transitioning its business from a PC-centric company to a data-centric company. The contribution of the data-centric business toward the company’s revenues rose from 33.0% five years ago to its current level of 50.0%. Each of Intel’s data-centric businesses has been growing at a double-digit rate on a YoY (year-over-year) basis.
Tech earnings season just got a lot more interesting. When major technology companies report their quarterly earnings over the coming month, they’ll do so in the aftermath of the Nasdaq’s worst week since March of this year. Amid market uncertainty, investors will be searching for indications of strong fundamental trends.
Amid threats of tariffs and trade wars, many investors have rotated into more small cap stocks and midcaps this year.
Stock futures soared Friday, with Dow stocks Apple, Boeing, Microsoft among those trying to rally. But stock market is in a correction.
Swedbank, one of Sweden’s largest banks, disclosed Thursday that it initiated large positions in those stocks in the third quarter.
The second round of 10% tariffs on $200 million in Chinese (FXI) goods, which went into effect on September 24, includes GPUs (graphics processing units). These tariffs could rise to 25% effective January 1, 2019, if no negotiations are resolved between the United States and China.
The bull market has lasted nine and a half years, but 2018 has seen three big market crashes, and the current one is the biggest. The technology-heavy Nasdaq Composite Index has plummeted 9% in October, and the broader S&P 500 index (SPY) has fallen 6.4% as of October 11. Technology stocks have been the biggest gainers during the bull market, and investors now seem to be booking profits.
October started with a sharp drop in the stock markets as the Federal Reserve increased interest rates by 25 basis points to 2.25%. This was the highest interest rate level since 2008 when the Fed cut rates to near zero to tackle the recession. The stock market reacted after a few days as investors adjusted their financial models.
Advanced Micro Devices (AMD) closed at $25.30 in the latest trading session, marking a +1.2% move from the prior day.
Stock market futures fell sharply early Thursday, along with Apple, Square, AMD, Nvidia, Amazon and other top techs, signaling more losses after Wednesday's sell-off.
Wednesday’s selling pulled down the broader market indexes and most tech companies, but the chip stocks declined for their fifth straight day on Wednesday. The tech-heavy NASDAQ 100 index also tumbled 7%. NVIDIA (NVDA), Advanced Micro Devices (AMD), Broadcom (AVGO), and Marvell Technology (MRVL) were among the stocks that suffered the most during the sell-off. NVIDIA, AMD, Broadcom, and Marvell fell 7.5%, 8.2%, 5.3%, 5.9%, respectively.