AMD Ryzen – Two tech stocks to buy after the result of blowout earnings
Apple (((NASDAQ: AAPL) When Advanced Micro Devices (((NASDAQ: AMD) We recently reported excellent earnings results, but future catalysts show further growth in the future.
This is a review of key highlights from the latest results from both companies and why both stocks are a great buy.
Apple began to grow sales a year ago after the pandemic scrambled for new computers and tablets to stay productive at home. That momentum remained with the company after the successful launch of the iPhone 12 in the fall, and continued until the third quarter of June.
Apple reported a record of $ 81 billion in quarterly sales ending in June, up 36% year-over-year. Earnings per share was $ 1.30, 30% above consensus analysts’ estimates.
“We’re in the early stages of 5G, but its incredible performance and speed are already having a huge impact on how people get the most out of our technology,” said CEO Tim Cook. increase. Demand may increase with the next iPhone launch. Recently, reports have emerged that Apple has increased production orders for the iPhone 13 by 20%.
While Shortage of chips Management said in a recent earnings announcement that sales for the quarter, including September, would be lower than in the third quarter, but would increase again by double digits.
Most importantly, the launch of another powerful iPhone will be huge for Apple’s growing service business. Apple currently has 700 million paid subscriptions on the platform. This is almost four times that of 2017. In the nine months to June, Apple achieved $ 50 billion in service revenue, up 28% year-over-year.
Apple is an iconic consumer brand with a very satisfying user installation base. Investors should feel that they can safely buy and hold this tech stock for the long term.
2. Advanced Micro Devices
Advanced Micro Devices’ share has skyrocketed over the last five years.Chip makers are going around IntelHowever, AMD’s revenue growth rate rose even further a year ago, just before. Sony When Microsoft Launched a new game console equipped with AMD’s custom chip.
Second-quarter earnings were up 99% year-on-year and earnings per share were up 346% to $ 0.58.
AMD’s segment, which includes semi-custom chips used in game consoles, recorded significant revenue growth of 183% year-on-year. The company acknowledges strong demand for EPYC server processors and growing demand for game consoles.
PlayStation 5 and Xbox Series X / S have been in short supply since they were launched last fall, selling only a small portion of the total installation base of the previous generation (PS4 and Xbox One). The console market upgrade cycle is AMD’s short-term major catalyst, especially on holidays.
Meanwhile, AMD continues to see strong demand for Radeon Instinct data center graphics processors. AMD has also increased production of Ryzen embedded central processing units (CPUs) and Radeon RDNA 2 graphics processing units (GPUs). TeslaIn-dash infotainment system for the latest Model S and Model X vehicles.
With all the uncertainties about economic recovery and COVID-19, not many companies are confident enough to issue a particular year-round guidance, but AMD sees a clear path to further growth. We raised our earnings outlook for 2021 and grew about 60% year-on-year.
Shares soared after the second-quarter earnings report, but one analyst estimates that the share could reach $ 150, which is almost 50% above the current share. Given AMD’s outlook, analysts may be right.
In the long run, AMD seems to be in great shape. Intel is lagging behind the launch of 7-nanometer chips, but AMD will invest until next year, including plans to launch a 5-nanometer “Zen4” EPYC processor to maintain pressure on larger rivals Provided a specific product roadmap to the home.this Chip stock I have legs.
This article represents the opinion of a writer who may disagree with the “official” recommended position of The Motley Fool Premium Advisory Services. We are miscellaneous! Asking investment treatises (even our own) helps us all think critically about investment and make decisions that help us become smarter, happier, and richer. Useful.