Nvidia Stock Up Big Today -- Intel and AMD Stock Updates
Summary
TLDRIn this episode, the host discusses the semiconductor market's rally, highlighting Nvidia's 6% increase and the overall bullish trend. They delve into the reasons behind the market's green day, including a positive employment report that eased recession fears. The host then explores investment strategies in the semiconductor space, advocating for ETFs like SMH for a safer play. They address Intel's challenges, including workforce cuts and competition, and suggest a long-term play on Intel's potential in manufacturing. Finally, they express optimism for AMD's future in the CPU and AI markets, considering it a good investment opportunity.
Takeaways
- 📈 Nvidia's stock experienced a significant increase, going up by roughly 6%, which was part of a broader rally in the semiconductor market.
- 🔍 The video will explore three main topics: the reasons behind the semiconductor rally, a discussion on a less exciting but effective investment strategy in the semiconductor space, and an analysis of Intel and AMD with potential investment opportunities.
- 🚀 Nvidia's stock has shown volatility over the past 5 days but has overall increased by 1%, indicating a positive trend despite market fluctuations.
- 🗨️ A viewer's question about the average cost bases for NVIDIA's stock was highlighted, with one viewer's cost base being around $129.
- 📊 The market's bullish trend was attributed to a positive employment report that reduced fears of a recession, following a previous increase in the unemployment rate.
- 💡 The host emphasizes their focus on technology rather than macroeconomics, aligning with their background as an engineer.
- 🌐 Investing in a semiconductor ETF like SMH is presented as a safer and historically rewarding approach compared to investing in individual companies, with SMH outperforming the S&P 500 and NASDAQ year to date.
- 📉 Intel's stock has suffered, being down over 50% year-to-date, which the host finds an interesting opportunity despite the company's current struggles.
- 🛠️ Intel's recent bearish news includes workforce cuts, dividend cuts, and product instability issues, which have negatively impacted the company's performance and reputation.
- 🏭 Intel's focus on its foundry business and the development of new products like Intel 18a is seen as a potential long-term positive, although results may not be visible until 2025.
- 📝 The host suggests a speculative investment strategy for Intel involving long-dated options with far strike prices, acknowledging the high-risk, high-reward nature of such a play.
- 💪 AMD is portrayed positively, with the host expressing a belief that the company will capture market share and perform well in CPU and AI solutions, considering the stock to be undervalued at its current price.
Q & A
Why did Nvidia's stock experience a significant increase on the day discussed in the video?
-Nvidia's stock increased by roughly 6% due to the overall green market, especially in the semiconductor space. The increase was partly attributed to an employment report showing a decline in initial unemployment claims, which eased fears of a potential economic recession.
What is the average cost base for NVIDIA according to the viewers mentioned in the video?
-The viewer named Corey mentioned their average cost base for NVIDIA is roughly $129.
What is the role of the company 'Mly Fool' in the context of the video?
-The Mly Fool is the sponsor of the video, and they are promoting a link to their website, full.com, which offers a list of the 10 best stocks to buy now with a promotional offer for their subscription service.
What is the significance of the semiconductor ETF SMH in the video?
-The semiconductor ETF SMH is highlighted as a way to invest in the semiconductor market without focusing on individual companies. It has historically outperformed the S&P 500 and is considered a safer investment approach in the sector.
How has the performance of SMH compared to the overall tech market and the S&P 500 year to date in the video?
-Year to date, SMH is up over 33%, significantly outperforming the NASDAQ, which is up 19%, and the S&P 500, represented by SPY, which is up 12%.
What is the current situation of Intel's stock performance discussed in the video?
-Intel's stock is down 57% year to date, sitting at $20.49, despite an 8% increase on the day of the video recording.
Why did Intel announce a workforce reduction?
-Intel announced a workforce reduction of roughly 15,000 roles due to unmet revenue expectations, high costs, and low margins, which have not yet benefited from powerful trends like AI.
What is the competitive situation between Intel and AMD in the client and data center markets?
-AMD is outperforming Intel in both the client and data center markets, with the client market up over 49% year-over-year for AMD, and their data center group up over 115% year-over-year, compared to Intel's declines in both areas.
What recent product developments has Intel announced that could impact its future?
-Intel announced that their Intel 18a products, including Panther Lake for client processors and Clearwater for server processors, are out of the fab, powered on, and booted operating systems, with expectations to start production in 2025.
What is the potential impact of Intel's manufacturing push on its market cap and stock price?
-If Intel's manufacturing push is successful, its current market cap of $87 billion could be considered low, and the stock price could potentially triple. However, if unsuccessful, the stock price could drop significantly.
What is the speaker's view on AMD's future prospects and its current stock price?
-The speaker believes AMD is poised to win market share in CPU and server processor markets and do well with AI solutions. They consider AMD's current stock price of 136 to be cheap and are looking to add more to their portfolio.
Outlines
📈 Nvidia's Stock Surge and Semiconductor Market Rally
The video script begins with a discussion on Nvidia's stock performance, which saw an impressive 6% increase on that day. The host plans to analyze the reasons behind the semiconductor market's rally, explore a less exciting but effective investment strategy in the semiconductor space, and review opportunities with Intel and AMD. The video is sponsored by the Motley Fool, who offers a list of the top 10 stocks to buy now. Nvidia's stock volatility is highlighted, with an overall 1% increase in the past five days. The host invites viewers to submit questions for future videos and addresses a question about viewers' average cost bases for Nvidia, mentioning a viewer's cost base of $129. The market's green trend is attributed to a positive employment report that eased recession fears, which had been stirred by a previous unemployment rate increase.
🤖 Investing in Semiconductors: ETFs as a Safe Bet
The host advocates for investing in semiconductor ETFs as a means to mitigate risk associated with individual company investments. They express a strong belief in the semiconductor market's potential to lead technological advancements for at least the next decade. The ETF SMH is highlighted for its historical outperformance compared to the S&P 500 and NASDAQ. The host shares their personal preference for SMH as a significant part of their portfolio, noting its year-to-date growth of over 33%. The potential for technological evolution in areas such as AI, autonomous driving, robotics, and space travel is cited as a reason for the long-term bullish outlook on the semiconductor market.
🔧 Intel's Market Performance and Future Prospects
The script shifts focus to Intel, noting an 8% increase on that day but a significant YTD decrease of 57%. Despite the current growth in AI and server CPUs, Intel has faced challenges, including workforce reduction due to unmet revenue expectations and high costs. The host outlines Intel's recent negative news, including job cuts and dividend reductions, and compares Intel's performance to AMD's, which shows significant growth in both client and data center markets. Intel's product instability issues and AMD's competitive advantage with their new Ryzen 9000 series CPUs are discussed. The host suggests that Intel's future largely depends on its foundry business and the success of its Intel 18a products, expected to start production in 2025. Options trading is proposed as a high-risk, high-reward strategy for investing in Intel, acknowledging the binary outcome potential for the company.
💪 AMD's Market Dominance and Growth Potential
The final paragraph discusses AMD, positioning it as a strong contender in the CPU market for servers and clients, as well as in AI solutions with their MI300 series accelerators. The host considers AMD's current stock price as a good opportunity for investment, expressing a desire to increase their portfolio's AMD holdings. They invite viewer opinions on the recent updates and the comparison between AMD and Intel, concluding the video with a prompt for viewer engagement.
Mindmap
Keywords
💡Nvidia
💡Semiconductor Market
💡ETF (Exchange-Traded Fund)
💡Volatility
💡Unemployment Claims
💡Recession
💡Intel
💡AMD
💡Foundry Business
💡Manufacturing Node
💡Options
Highlights
Nvidia's stock and the overall semiconductor market experienced a significant rally with Nvidia's stock up roughly 6%.
The video discusses three main points: the semiconductor rally, a method to play the semiconductor space, and opportunities with Intel and AMD.
Intel's stock has dropped over 50% year-to-date, prompting an exploration of how to invest in the company despite its challenges.
An employment report showing a decline in initial unemployment claims has eased recession fears and positively impacted the stock market.
Investing in a semiconductor ETF like SMH is presented as a safer and historically rewarding approach compared to individual stocks.
SMH has outperformed the S&P 500 and NASDAQ year-to-date, illustrating the strong performance of the semiconductor market.
Intel's recent positive news includes the progress of their Intel 18a products, which are expected to start production in 2025.
Intel's workforce reduction and revenue growth issues are highlighted as significant challenges for the company.
AMD's strong performance in the CPU market for both consumer and data center groups is contrasted with Intel's struggles.
Intel's manufacturing business is seen as a long-term investment with potential for significant payoff if successful.
A strategy for investing in Intel is suggested, which involves buying long-term options with far-strike prices.
AMD's recent release of the Ryzen 9000 series CPUs has been met with positive reviews, signaling a strong competitive position.
AMD's potential for growth in the AI solutions market with their MI300 series accelerators is highlighted.
The video creator's personal view is that AMD's current stock price is still considered cheap and a good opportunity for investment.
The video concludes by inviting viewers to share their thoughts on the updates and the comparison between AMD and Intel.
Transcripts
today we finally had a great day for
nvidia's stock and the overall
semiconductor Market we can see Nvidia
was up roughly 6% today so in today's
episode I want to do the following first
take a closer look at why semiconductors
rally second I want to take a closer
look at an interesting but boring way to
play the semiconductor space that I
enjoy very very much and third I want to
end this episode kind of looking at
Intel and AMD and showcasing some
opportunities for both these plays um
and it's pretty interesting right cuz
Intel I think year-to dat is down over
50% so how can one play this um
disastrous of a company right now well
we'll take a closer look in today's
episode I want to thank the mly fool for
sponsoring this video and check out
full.com hose for the 10 best stocks to
buy now with that link you get a
promotional offer for the subscription
service now let's continue with today's
episode all right so first let's start
off with Nvidia and we can see Nvidia
was up r 6% today in the past 5 days
crazy volatility around the market but
overall the stock is up 1% all right so
before we go any further I want to start
off with a question asked in the last
video and if you want a question
featured in the next video feel free to
post it on the comments below but Corey
money wants to know what are most of the
viewers average cost bases for NVIDIA
for Corey it is roughly
$129 so now I want to take a closer look
at why the over overall stock market was
green especially kind of the
semiconductor space I mean we see Nvidia
was up 6% today we see AMD another
monster up 6% today we see even
companies like broadcom which I believe
is one sitting at some great levels
right now at 7% for the day we even see
some of your favorite semiconductor
companies Intel up over 8% on the day
right and the main reason is obviously
we've seen this crazy volatility in the
market in the past few days so usually
following a red day you kind of see a
nice green day but the other thing is it
does seem like based on reports today's
jump was parked by an employment report
that showed a decline in initial
unemployment claims cooling off fears
that the economy was possibly headed
towards a recession after the July
unemployment rate jump from 4.1 to% to
4.3% so you guys know me I'm an engineer
I'm not a financial analyst uh so I
usually don't cover Mac economics or
anything that's impacting the stock
price in those regards I really focus
more on the tech based on my education
and career background but I definitely
wanted to bring that up to see showcase
why one of the reasons we're seeing such
a bullish Trend in the overall market
right now before we go any further we
are now on the road to 50,000
subscribers by the end of the year thank
you all for the crazy support So if you
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Subscribe button finally if you want to
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make sure to check out my special offer
at full.com hose now back to today's
episode now I did mention at the
beginning of this episode that I would
me that I would discuss what's a very
boring but important way to kind of play
the semiconductor space the
semiconductor Market is full of
cyclicality is full of risk investing in
individual companies I am uh much
believer that the semiconductor space is
going to lead the technological
Revolution for the next 10 years at
least maybe even more than that and if
one doesn't want to invest in a
semiconductor individual company I
believe the next best approach is
actually investing in a semiconductor
ETF where you get a full basket of
multiple companies and you still get a
nice amount of returns historically SMH
has outperformed and the semiconductor
has outperform the S&P 500 and the q's
obviously you do get kind of those
downturns as well um but to me if I was
to invest in ETF or the overall Market I
think I would PST most of my money on
SMH and I believe outside of my
individual stocks SMH is my biggest ETF
in my portfolio we can see year to dat
the stock is up over 33% where the
NASDAQ year today is up 19% and where
let's take a closer look at the S&P 500
or spy year to dat is up 12% so SMH has
completely demolished the overall Tech
market and the overall Market in general
and I believe in the long term of things
that's always going to be the case at
least for the next few years um because
of the evolution that we're seeing in
technology from AI from autonomous
driving from robotics from space travel
to the list goes on and on and on uh so
definitely if one is looking for maybe
uh I would say safer way of investing in
the semiconductor Market definitely
check out semiconductor ETF SMH and
there's a few others that I personally
invest in but pretty much is the same
kind of topic of investing in a general
semiconductor ETF in uh space and next I
want to take a closer look at Intel but
I do want to say thank you all for the
support on the ebook I do have two
ebooks in encyclopedia and then earnings
Insight I just sent out the updates so
if you did purchase the books remember
you get free updates I just sent the
updates if you haven't gotten the update
on the earnings one yet check your spam
folder we are on version 3 so if you are
curious about learning more about the
semiconductor space check out more
semines
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automatic $20 off there's no code and
both of these are living documents as
more earnings come out this quarter I'm
going to be adding more of them to the
book so check it out at more semines
Intel and Intel up 8% for the day but we
can see the stock is sitting at
$20.49 year to date the stock is down
57% and this is wild right this is a
time and era where we're seeing growth
in the aipc space in AI Solutions and
something that Intel with their server
CPUs with their consumer CPUs can
definitely benefit and Intel also has
some form of AI accelerator even though
is at a such a small market so just a
quick recap of what's happening with
Intel and some of the recent bearish
news the first thing is unfortunately
Intel did announce that they were
cutting roughly 15,000 rolls off their
Workforce the main reason is their
revenue have not grown as expected and
they yet to fully benefit from the
powerful trends like Ai and their cost
are too high and their margins are too
low so obviously right off the bat we
can see what's the negative impact for
Intel stock and what is the biggest
bearish case so right now this is what's
creating a lot of fear some other fears
are recently we did have Intel
shareholders who ship maker after job
dividend cuts that cause stock to plunge
so we're going to continue to see a lot
of this negativity and when we look at
kind of Intel's core product like I
mentioned they hit the client consumer
with CPUs for laptops for desktop that
revenue is down on a sequential basis
and it's barely up on a year-over-year
basis where for example for AMD their
biggest competitor we can see the client
Market was up over 49% year-over-year
and up 9% quarter over quarter so we can
see AMD is definitely doing a lot better
than Intel in their client group and if
we look at their data center group their
data center group is down on a
year-over-year basis where amds is up
over 115% on a year-over-year basis and
up over 21% on a quarter over quarter
basis so the biggest fears here are just
like I mentioned Intel is not growing
fast enough and the main reason is you
have heavy competitions from the likes
of AMD now kind of more bearish
sentiment recently Intel's 13th and 14th
consumer G CPUs seem to have some
instability issues which is causing kind
of more
negative press for the overall business
in general and for their brand and AMD
is taking Tak advantage of that as they
recently released some new CPUs the
ryzen 9000 Series and the reviews all
over the Internet and YouTube have been
amazing for this platform so we
definitely see this bearish case for
Intel and how AMD is eating Intel's
lunch in both the CPU market for the
consumer and the client's base now you
might be wondering hey Jose you you
mentioned earlier on that there might be
an interesting way to play Intel and I
definitely think that is the case and
the main reason is because of their
Foundry business so Intel is focusing on
manufacturing business but unfortunately
the manufacturing takes a a lot of years
to really showcase any results luckily
the only thing we can see or
unfortunately the only thing we can see
is kind of small evidence here and there
of how they're progressing and Intel
recently announced on August 6 that they
are focusing on their Intel 18a products
and their Intel 18a products which is
their Panther Lake which is a CPU for
the client processor and clear water
which is a processor for the server
Market are out of the Fab and have
powered on and booted operating systems
and they expect both products are on
track to start production in
2025 they also expect the first external
customers is expected to tape out on
Intel a in the first half of next year
so right now Intel 18a for those that
are not familiar here is the type of
Chip manufacturing node that they
believe is going to be uh lead in Edge
process node and is going to be able to
take leadership from tsmc well I don't
believe that's necessarily true if these
reports are true and if they do have
some really viable Solutions this could
be a big win for the company now
unfortunately we really won't hear
results about this until maybe the
second half of 2025 on how things are
going or maybe at at early the first
half of 2025 so that's going to take
some time so for me I think Intel in the
short term is going to be pretty much
dead money obviously we'll see stock
prices move up due to various sentiments
changes but in the long term I don't
believe we should expect much for Intel
now for Intel there's only two things
that can really happen for me if they do
good it's going to be massive massive
for the company it means that if the
company does really good in their
manufacturing push a market cap of $87
billion is going to be very low compared
to where they can grow I believe if
things go well this can two 3x very very
easily if they don't do really good then
this can kind of drop extremely fast so
if one is looking into playing the Intel
Market I want to say the best approach
and this is probably only if you're
familiar with options is buying options
that are multimon are are over a year
away and that are very very far strike
price like I mentioned for Intel it's
either they're going to do really good
or really bad because like I mentioned
if things go well then Intel is going to
jump dramatically um so that's probably
one way to kind of play Intel stock
again that's not advis and if you don't
know how to do options then probably
ignore it um but just a random idea let
me know what you guys think about that
idea in general now for AMD AMD in my
opinion is going to be a beast they're
going to win market share in the CPU for
for processor for Server processor and
for client processor they're also in my
opinion going to do well with AI
Solutions with their Mi 300 and Mi 325
Mi 350 and Mi 400 so AMD is one that I
believe at these levels of 136 is still
pretty cheap this is one of the few
semiconductor stocks that I'm really
really looking to add more into my
portfolio so let me know what are your
thoughts on these recent updates what
are your thoughts on AMD versus int tell
take care have a good day and see you
next time
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