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.

Outlines

00:00

📈 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.

05:02

🤖 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.

10:03

🔧 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.

Keywords

💡Nvidia

Nvidia is a leading technology company specializing in the design and manufacturing of graphics processing units (GPUs) and artificial intelligence platforms. In the video, it is highlighted that Nvidia's stock experienced a significant increase of roughly 6%, indicating a positive day for the company and the overall semiconductor market.

💡Semiconductor Market

The semiconductor market refers to the industry that produces and deals with semiconductor devices, which are essential components in electronics. The video discusses a rally in this market, evidenced by the stock performance of Nvidia and other companies like AMD and Broadcom, showing an overall bullish trend.

💡ETF (Exchange-Traded Fund)

An ETF is an investment fund that is traded on stock exchanges, much like individual stocks. In the context of the video, the speaker recommends investing in a semiconductor ETF like SMH as a way to gain exposure to the entire semiconductor market, reducing risk by not investing in individual companies.

💡Volatility

Volatility refers to the degree of variation of a trading price series over time. The script mentions 'crazy volatility' in the market, which is a key factor in the fluctuation of stock prices, such as Nvidia's 6% increase after a period of market instability.

💡Unemployment Claims

Unemployment claims are reports made by individuals who are out of work and seeking benefits. The video mentions a decline in initial unemployment claims, which is seen as a positive economic indicator that may have contributed to the market's bullish trend.

💡Recession

A recession is a period of economic decline, typically characterized by a fall in GDP, high unemployment, and a drop in retail sales. The script discusses fears of a recession being cooled off by positive employment reports, which is relevant to the overall market sentiment.

💡Intel

Intel is a multinational technology corporation and a major player in the semiconductor industry, known for its processors. The video discusses Intel's stock performance, noting a significant year-to-date drop and recent news about workforce cuts and product instability issues.

💡AMD

AMD, or Advanced Micro Devices, is another key player in the semiconductor industry, competing with Intel in the CPU market. The script highlights AMD's strong stock performance and its competitive advantage over Intel in the client and data center markets.

💡Foundry Business

A foundry business in the semiconductor industry refers to companies that manufacture chips for others. The video mentions Intel's focus on this business, indicating a strategic shift towards manufacturing services, which is a long-term investment with potential for significant payoff.

💡Manufacturing Node

In the context of semiconductors, a manufacturing node refers to the technology used to create chips, often denoted by a number that signifies the size of the smallest features on the chip. The video discusses Intel's 18a products, which are expected to be manufactured using a leading-edge process node.

💡Options

Options are financial instruments that give the buyer the right, but not the obligation, to buy or sell an underlying asset at a specified price within a certain period or on a specific date. The video suggests using long-term options to play the Intel market, based on the belief that Intel's future performance could be highly variable.

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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make sure to hit the thumbs up and the

Subscribe button finally if you want to

support the channel I a little bit more

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

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Insight I just sent out the updates so

if you did purchase the books remember

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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