Nvidia Stock Up Big Today -- Intel and AMD Stock Updates

Summary

In 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.