Key Points Micron recently boosted its outlook for server shipments. Micron sells both HBM memory for AI chips and standard server DRAM, both of which are in short supply. Intel is struggling to keep up with demand for server CPUs, although capacity constraints are expected to ease later in 2026. 10 stocks we like better than Micron Technology › Soaring demand for servers is surprising even the most optimistic AI hardware providers. In December, Micron (NASDAQ: MU) boosted its outlook for 2025 s ...

Group 1: Fund Performance - Alpha Wealth Insiders Fund achieved a return of 4.96% in September 2025, with year-to-date returns reaching 21.37% [1] - The fund's performance outperformed the S&P 500, which had a September return of 3.65% and a year-to-date return of 14.83% through September 30, 2025 [1] Group 2: Intel Corporation Overview - Intel Corporation (NASDAQ: INTC) is a global leader in semiconductor design and manufacturing, focusing on CPUs, GPUs, and AI accelerators [3] - The company is undergoing a restructuring process under CEO Lip-Bu Tan, aiming to refocus on its core chip business and expand foundry operations [3] - Intel is also pursuing government-backed initiatives to enhance U.S. semiconductor leadership and competitiveness against rivals like NVIDIA, AMD, and TSMC [3] Group 3: Intel Corporation Financials - In Q3 2025, Intel reported revenue of $13.7 billion, reflecting a sequential increase of 6% [4] - The one-month return for Intel's stock was -2.28%, but it gained 98.19% over the last 52 weeks, closing at $39.38 per share on January 2, 2026, with a market capitalization of $187.843 billion [2][4] Group 4: Market Sentiment and Hedge Fund Interest - Intel Corporation was held by 81 hedge fund portfolios at the end of Q2 2025, a slight decrease from 82 in the previous quarter [4] - Despite the positive sentiment surrounding Intel's restructuring plan, certain AI stocks are viewed as having greater upside potential and less downside risk [4]

Core Insights - Intel experienced a significant year in 2025 with a new CEO and substantial investments from the US government, Nvidia, and SoftBank, leading to an 86% stock increase, outperforming major tech rivals [2] - Despite these developments, Intel's manufacturing segment still lacks a major external customer, which is essential for its financial viability [2][4] - Analysts express cautious optimism about Intel's future relevance in the chip manufacturing sector, although no major deals have been established to solidify its manufacturing position [3] Company Developments - The appointment of Lip-Bu Tan as CEO in March 2025 has renewed investor confidence in Intel's turnaround potential, despite the company's strategy remaining largely unchanged [6] - Previous CEO Pat Gelsinger's aggressive turnaround efforts faced skepticism from investors due to high spending and uncertain outcomes [5] Industry Context - Intel has historically been a pioneer in the semiconductor industry, credited with inventing the first microprocessors and the x86 architecture, which has shaped the digital revolution [3] - The company has struggled to maintain its competitive edge against rivals like AMD and Arm, resulting in a loss of market share in key product segments [4]

Core Insights - Advanced Micro Devices (AMD) has experienced a remarkable turnaround since 2015, shifting its focus to high-performance gaming, immersive platforms, and data center products, which has led to significant growth in its stock price [1][8]. Group 1: Financial Performance - AMD's share price has increased by 8,710% over the past decade, transforming a $10,000 investment into approximately $881,310, compared to $33,210 for the same investment in the S&P 500 [3]. - The company faced a net loss of $660 million in 2015, with a 28% decline in revenue primarily due to falling processor sales [1]. Group 2: Strategic Management - Lisa Su, who became president and CEO in October 2014, has been instrumental in guiding AMD's strategy towards high-growth areas and diversifying its product line, reducing reliance on PC sales [4]. - AMD's recent performance includes a 79% increase in stock price over the last six months, positioning it as a leading player in the artificial intelligence sector, providing CPUs, GPUs, and adaptive computing solutions [5]. Group 3: Investment Considerations - Despite AMD's strong performance, it was not included in a recent list of the top 10 stocks recommended by The Motley Fool Stock Advisor, which suggests that there may be other investment opportunities that could yield higher returns [6][8].

Core Viewpoint - The overall outlook on Intel Corporation (INTC) stock is negative, with a recommendation to sell, as operational performance and financial standings are weak, despite a moderate valuation [1][3]. Valuation - Intel's valuation appears moderate compared to the broader market, indicating that the stock may not be accurately priced given its underlying performance issues [6]. Growth - Intel's top line has contracted at an average rate of -7.6% over the past three years, with revenues decreasing by 1.5% from $54 billion to $53 billion in the last 12 months [8]. - Quarterly revenues increased by 2.8% to $14 billion in the most recent quarter compared to $13 billion a year ago [8]. Profitability - The operating income for Intel over the last 12 months was -$104 million, resulting in an operating margin of -0.2% [9]. - The company generated nearly $8.6 billion in operating cash flow during this timeframe, with a cash flow margin of 16.0% [9]. - Intel produced approximately $198 million in net income, indicating a net margin of about 0.4% [9]. Financial Stability - As of the latest quarter, Intel's debt stood at $47 billion, with a market cap of $168 billion, resulting in a debt-to-equity ratio of 30.7% [10]. - Intel's cash (including equivalents) constitutes $31 billion of $205 billion in total assets, yielding a cash-to-assets ratio of 15.1% [10]. Downturn Resilience - Intel has underperformed compared to the S&P 500 index during various economic downturns, indicating vulnerability to market fluctuations [11]. - The stock has experienced significant declines during past crises, including a 63.3% drop from a peak of $68.26 on April 9, 2021, to $25.04 on October 11, 2022 [13].

Core Viewpoint - Nvidia is currently the leader in the AI chip market, but competition from AMD and Google is intensifying, potentially challenging its dominance in the coming years [2][13]. AMD's Ambitious Plans - AMD aims to lead the $1 trillion AI and high-performance computing market with a revenue compound annual growth rate (CAGR) of over 35% in the next three to five years, and over 60% for its data center business [4][7]. - AMD has secured significant contracts, including a deal with OpenAI to use its Instinct MI450 GPUs in AI infrastructure, with deployment expected in the second half of 2026 [7]. - The company has also won contracts with the U.S. Department of Energy for its Lux and Discovery AI supercomputers [8]. Google's Advancements - Google's Cloud unit is making strides with its Tensor Processing Units (TPUs), which are being utilized by various AI leaders, including Anthropic, which is investing heavily in expanding its AI compute capacity using Google's TPUs [9][10]. - Meta Platforms is reportedly in discussions to use Google's TPUs in its data centers starting in 2027, indicating Google's growing influence in the AI chip market [12]. - Google's new Ironwood TPUs are four times more powerful than previous models, enhancing its competitive position [12]. Competitive Landscape - Both AMD and Google are gaining momentum in the AI chip market, prompting questions about Nvidia's future dominance [13]. - Despite the competition, Nvidia's management believes its market position is secure, as it remains a generation ahead in technology and is the only platform capable of running every AI model [14]. - The AI chip market is large enough to support multiple leaders, suggesting that while Nvidia may remain the king, AMD or Google could emerge as significant challengers [14].

Core Viewpoint - Concerns about a potential AI sector bubble are rising, with Advanced Micro Devices (AMD) showing early warning signs similar to its performance during the Dot-com era [1][4] AMD Stock Outlook - AMD's stock is approaching a multi-decade higher-highs trend line, historically indicating major market tops, with a recent higher high in its six-year uptrend viewed as a technical peak [2] - A bearish leg is anticipated, potentially driving the stock down to around $110 [2] - The current price structure is compared to the Dot-com era, suggesting a corrective phase may pull the stock toward its 100-month moving average, a significant long-term support level [4] Historical Context - Previous technology sector corrections were followed by a final parabolic surge, which could indicate that the AI cycle may still experience a strong upside phase after the current correction [5] Long-term Projections - For long-term investors, there is a potential for AMD to reach approximately $435 by around 2030 if historical patterns hold [6] AMD Stock Fundamentals - Despite recent stock pressure, AMD's fundamentals remain strong, with year-over-year revenue growth exceeding 30%, driven by data-center sales and a recovery in client computing [8] - Operating margins have improved due to a larger share of revenue from higher-value AI and server products [8] - Risks include U.S. export restrictions to China and increasing competition from Nvidia in AI accelerators and Intel in CPUs [8][9]

Core Insights - Nebius Group N.V. (NBIS) has significantly increased its capital expenditure (capex) plan for 2025 from $2 billion to $5 billion to meet the rising demand for AI infrastructure [1][10] - The company aims to exit 2025 with positive adjusted EBITDA at the group level, despite a projected adjusted EBITDA loss of $5.2 million for Q3, which is an improvement from a $45.9 million loss in the same quarter last year [3][10] - Financing for this aggressive expansion will be sourced through corporate debt, asset-backed financing, and equity, with plans to raise up to 25 million Class A shares [4][10] Capex Breakdown - The strategic capex allocation includes approximately 1% for securing land and power, 18-20% for building data centers, and around 80% for GPU deployment [2] - The accelerated investment is crucial for achieving ambitious annual recurring revenue (ARR) targets for 2025 and 2026, contingent on effective execution and sustained AI demand [5] Competitive Landscape - CoreWeave, a competitor, has reduced its 2025 capex guidance from $20-23 billion to $12-14 billion, while Microsoft is expected to increase its capex growth rate in fiscal 2026 compared to fiscal 2025 [6][7][8] - Microsoft allocated $34.9 billion in capex in Q1 of fiscal 2026, with significant investments in GPUs and CPUs to support its Azure platform [8] Market Performance - Nebius shares have declined by 6% over the past month, contrasting with a minor decline of 0.2% in the Internet – Software and Services industry [11] - The price/book ratio for NBIS shares stands at 5.38X, exceeding the industry average of 3.96X [13]

Core Insights - AI stocks have experienced a significant sell-off over the past 30 days, leading to potential bargains for long-term investors [1][2] - The infrastructure buildout for AI is accelerating, creating opportunities for investors willing to buy during market corrections [2][16] Company Summaries - **Alphabet (GOOGL)**: Competes with Nvidia through its Tensor Processing Unit (TPU) chips, holding a market cap of nearly $4 trillion and strong positions in AI software and hardware [3][4] - **SoundHound AI (SOUN)**: Develops conversational AI software for various applications, presenting an attractive entry point as a pure-play voice AI stock [5] - **Navitas Semiconductor (NVTS)**: Designs power semiconductors that support Nvidia's next-gen data centers, offering exposure to AI infrastructure at lower valuations [6] - **Applied Digital (APLD)**: Transitioned from Bitcoin mining to AI data centers, providing long-term revenue visibility through contracts with AI cloud providers [7] - **Nvidia (NVDA)**: Dominates the AI workload market with its GPUs, maintaining a reasonable valuation despite past performance [8] - **IREN**: Operates renewable-powered data centers for GPU cloud services, securing a significant contract with Microsoft [9] - **Nebius Group (NBIS)**: Offers AI infrastructure solutions and has secured approximately $20 billion in contracts with major tech companies [10][12] - **CoreWeave**: Operates a cloud platform tailored for AI, with substantial revenue commitments from leading firms [12] - **ASML Holding (ASML)**: Manufactures essential lithography machines for semiconductor production, holding a monopoly position in the AI chip market [13] - **Advanced Micro Devices (AMD)**: Designs CPUs and GPUs for various applications, providing a more reasonably valued alternative to Nvidia [14][16] Market Context - The recent sell-off in AI stocks reflects market skepticism rather than a decline in demand, with hyperscaler capital expenditures increasing and backlogs expanding [16][17]

With a market cap of $175.8 billion, Intel Corporation (INTC) is a global leader in designing, developing, and manufacturing computing technologies and semiconductor products. The company provides a wide range of hardware and software solutions from CPUs and GPUs to AI, networking, edge computing, and advanced process technologies, serving industries from cloud to automotive. Companies valued over $10 billion are generally described as “large-cap” stocks, and Intel fits right into that category. Intel sup ...