ALSO READ: Quote of the Day by Kendrick Lamar: 'I learned, when I look in the mirror…'—Top quotes by the most awarded rapper in Grammy historyHow did the Dow Jones reach 50,000?The The rally came after a difficult stretch earlier in the week, when technology shares dragged markets lower amid concerns over artificial intelligence spending and valuations. By Friday, investors appeared to decide that the sell-off had gone too far, prompting a broad return to equities.Live EventsWhat did Trump say about the Dow ...

While a lot of the market has also been under pressure, clearly, investors saw something they didn't like in these latest earnings.James Foord is an economist by trade and has been analyzing global markets for the past decade. He leads the investing group The Pragmatic Investor where the focus is on building robust and truly diversified portfolios that will continually preserve and increase wealth. The Pragmatic Investor covers global macro, international equities, commodities, tech and cryptocurrencies and ...

Group 1 - The majority of AI-related stocks in the US market experienced an increase, with Supermicro Computer (SMCI.O) and Arm (ARM.O) rising by 10% [1] - AMD (AMD.O) saw an increase of over 8% [1] - NVIDIA (NVDA.O) rose by more than 7% [1]

Core Viewpoint - Cisco Systems (CSCO) is demonstrating resilience in its stock performance amidst a broader tech sell-off, maintaining a strong position in the market ahead of its upcoming earnings report [1] Group 1: Stock Performance - Cisco stock is trading tightly and remains in a buy zone, indicating strong market interest and stability [1] - The company has experienced a technical breakout, transitioning from a legacy hardware provider to a player in artificial intelligence infrastructure [1] Group 2: Market Context - The Nasdaq composite is showing signs of distribution days clustering, which typically indicates selling pressure in the tech sector [1] - Cisco is highlighted as a leader in the Dow Jones alongside other companies like Halozyme and Toll Brothers, which are also in or near buy zones [1] Group 3: Earnings Outlook - Cisco has been upgraded based on an above-consensus profit and revenue outlook, suggesting positive expectations for its upcoming earnings report [1]

I am a full-time analyst interested in a wide range of stocks. With my unique insights and knowledge, I hope to provide other investors with a contrasting view of my portfolio, given my particular background.If you have any questions, feel free to reach out to me via a direct message on Seeking Alpha or leave a comment on one of my articles.Analyst’s Disclosure: I/we have a beneficial long position in the shares of AMD, NVDA, AVGO either through stock ownership, options, or other derivatives. I wrote this a ...

Core Viewpoint - The content emphasizes the importance of conducting personal due diligence and consulting with competent advisors before making any financial decisions, particularly in the context of investments in complex instruments like cryptocurrencies and CFDs [1]. Group 1 - The website provides general news, personal analysis, and third-party materials intended for educational and research purposes [1]. - It explicitly states that the information should not be interpreted as a recommendation or advice for investment actions [1]. - The accuracy and reliability of the information are not guaranteed, and users are cautioned against relying solely on the content provided [1]. Group 2 - The website discusses the high risks associated with cryptocurrencies and CFDs, highlighting that they are complex instruments with a significant potential for financial loss [1]. - It encourages users to conduct their own research and fully understand the workings and risks of any financial instruments before investing [1].

Group 1 - The company offers a Growth Investor Pro service that teaches investing, trading, and risk management [1] - A swing trading alerts system has been successfully operated for several years [1] - Weekly live webinars are provided, along with access to senior staff and a 24x7 chat environment [1] Group 2 - A one-month trial of the service is available for $99, allowing potential subscribers to evaluate before committing to an annual subscription [2] - The service has received numerous 5-star reviews during both bear and bull markets [2]

Investment Rating - The report assigns a strong buy rating for AMD, expecting it to outperform the benchmark index by over 20% in the next six months [47]. Core Insights - AMD achieved record performance in FY25Q4 with total revenue reaching $10.3 billion, a year-over-year increase of 34% and a quarter-over-quarter increase of 11%. The gross margin significantly improved to 57%, up 290 basis points year-over-year, and diluted earnings per share were $1.53, reflecting a 40% increase year-over-year. Annual revenue also grew by 34% to $34.6 billion, with multiple key metrics hitting historical highs [2][7]. - The data center business generated $5.4 billion in revenue, marking a 39% year-over-year increase and a 24% quarter-over-quarter increase, driven by the penetration of the fifth-generation EPYC processors and the explosive growth of the Instinct GPU business. Eight out of the top ten AI companies utilize Instinct for production workloads [3][8]. - The client and gaming segment combined revenue was $3.9 billion, a 37% year-over-year increase but a 3% quarter-over-quarter decline. The client business alone reached $3.1 billion, a historical high, with over 40% year-over-year growth in commercial laptop and desktop Ryzen CPU sales [9]. - The embedded business reported $950 million in revenue, a 3% year-over-year increase and an 11% quarter-over-quarter increase, with a record $17 billion in design orders accumulated in 2025 [10]. Revenue Breakdown - **Data Center Business**: Revenue of $5.4 billion, up 39% year-over-year and 24% quarter-over-quarter, with significant contributions from the fifth-generation EPYC processors and MI350 series GPUs [3][8]. - **Client and Gaming Business**: Combined revenue of $3.9 billion, with the client segment at $3.1 billion and gaming at $843 million, reflecting strong demand for Ryzen CPUs and Radeon GPUs [9]. - **Embedded Business**: Revenue of $950 million, with a notable increase in design orders and strong performance in various markets [10]. Business Progress - AMD is advancing its product development with the successful mass production of the next-generation data center product MI355, and the upcoming MI400 series is on track for release in H2 2026 [4]. - The software ecosystem is expanding, with the ROCm ecosystem supporting AMD GPUs and new models in healthcare [4]. Performance Guidance - AMD provided non-GAAP guidance for FY26Q1, projecting revenue of approximately $9.8 billion (with a fluctuation of $300 million), a gross margin of about 55% (up 130 basis points year-over-year), and operating expenses of around $3.05 billion [11].

Group 1 - Major stock indices showed slight gains, with Dow futures up 0.08%, S&P 500 futures up 0.16%, and Nasdaq futures up 0.08%. Cryptocurrency stocks also rebounded, with Coinbase rising nearly 4% and Bitmine Immersion Technologies increasing by nearly 3% [1] - Power stocks experienced a pre-market rally, with Vistra Energy up 3.75% and Constellation Energy up 2.28%. Analysts from Bank of America indicated that recent sell-offs in this sector were due to policy misunderstandings rather than weak fundamentals, highlighting strong growth potential for specific power producers [1] - Chip stocks saw a pre-market increase, with Nvidia up 1.51% and AMD up 0.85% [2] - Amazon reported Q4 net sales of $213.39 billion, a 14% year-over-year increase, and AWS net sales of $35.58 billion, a 24% increase, marking the highest growth rate since the end of 2022. However, Amazon's projected capital expenditures for 2026 are expected to be around $200 billion, a 50% increase from 2025, which is significantly higher than Wall Street's expectations [5] Group 2 - Stellantis announced a write-down of €22 billion to adjust its electric vehicle strategy due to weak demand, leading to a stock price drop of over 20%. The company anticipates a net loss of €19 to €21 billion in the second half of 2025 and has suspended dividend payments [2] - Toyota raised its full-year outlook, projecting annual net sales of ¥50 trillion, up from a previous estimate of ¥49 trillion, and net profit expectations increased to ¥3.57 trillion from ¥2.93 trillion. The company also announced a leadership change, with CFO Koji Sato set to take over as CEO [3] - In Michigan, the Attorney General called for a re-evaluation of the power supply plan for Oracle's data center, citing concerns over the reliability of Oracle, OpenAI, and DTE Energy as partners, which could impact consumer electricity costs [4]

Core Viewpoint - Despite AMD's light Q1 guidance, the underlying investment premise remains unchanged, with substantial revenue and earnings growth reported in Q4 2025 [1] Group 1: Q1 Guidance and Revenue Projections - AMD projected Q1 revenue to increase by 32% year over year to approximately $9.8 billion, reflecting a sequential decline of about 5% due to seasonality in client, gaming, and embedded segments [3] - Concerns regarding lighter guidance for Q1 are viewed as overblown, with overall data center growth expected to exceed 60% annually over the next three to five years, including in 2026 [5] Group 2: Data Center Business - The data center business is at an inflection point, with significant revenue growth anticipated despite lower sales in China due to U.S. trade policies [4] - Revenue for the MI450 GPU is expected to ramp up significantly later in the year, and supply constraints are not expected to hinder data center growth [4] Group 3: CPU Business Performance - AMD's client segment revenue surged 34% year over year in Q4 to a record $3.1 billion, with record server CPU sales reported [7] - Demand for AMD's Turin CPUs is high, driven by increased AI infrastructure spending among major hyperscalers like Amazon, Google, and Microsoft [8] Group 4: Valuation Insights - Following the recent stock plunge, AMD's shares trade at 38 times forward earnings, indicating a valuation reset that enhances attractiveness despite not being classified as a value stock [10] - The stock's price-to-earnings-to-growth (PEG) ratio of 0.52 highlights favorable growth prospects based on Wall Street's five-year earnings growth projections [10]