Three companies in the semiconductor sector make graphics card chips that power Artificial Intelligence servers. Nvidia (NVDA) has the most advanced chips. AMD is second, and Intel (INTC) with its Gaudi AI servers is third.
Yesterday, AMD stock lost 10.6% after posting quarterly results. The firm traded at an unsustainable valuation, giving profit-takers a reason to exit their position.
AMD’s progress in the PC CPU and the AI server market is impressive. Although it is scaling back on growing in the PC gaming market, the AI server market is a bigger revenue opportunity.
AMD is a stock to consider buying if it dips further.
Visa (V) will likely trade at new highs in the coming days. The firm posted Q4 earnings of $2.71 a share on revenue of $9.62 billion. Strong payment volume of 8% Y/Y is a sign that the business will accelerate its growth.
V stock is an attractive investment.
W.P. Carey (WPC) peaked at close to $65 ahead of its earnings report. However, the stock closed at $56.19 after reporting Q3 results. Though adjusted FFO per share was $1.18 and above expectations, investors are avoiding REITs.
The Federal Reserve is not in a good position to cut rates by 50 bps again. The job market is too strong and inflation is persistent. Until those weaken, rates will not fall by much. WPC stock needs falling rates to lift its share price.
Avoid WPC stock for now.