Tech Sell-Off and Politics Lead to Stock Dips for ARM Holdings and AMD

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Advanced Micro Devices ($NASDAQ:AMD) (AMD) is a leading semiconductor company that designs and produces high-performance computer processors and graphics processing units. On Tuesday, the company’s stock experienced a dip along with ARM Holdings, another major tech stock. The dip in stock prices may have been caused by a tech sell-off in the market.

Additionally, political factors could have caused investors to hesitate. The current US-China trade war has been a source of uncertainty for many companies in the tech sector, and this could have had an impact on stock prices for AMD and ARM Holdings. It’s difficult to pinpoint the exact cause of the dip in stock prices, but these three factors are likely to have played a role. As tensions between the US and China continue, investors may remain cautious when it comes to stock purchases in the tech sector.

Share Price

Tuesday was a difficult day for tech stocks, most notably ARM Holdings and ADVANCED MICRO DEVICES (AMD). AMD opened at $144.3 and closed at $138.6, a 6.0% drop from its prior closing price of $147.4. This sell-off can be attributed to both political and economic factors. Investors are concerned that the current trade war between the U.S. and China, along with the possibility of stricter regulation in the tech industry, will lead to a slowdown in the tech sector.

Additionally, there have been reports of softening demand for semiconductors, making investors wary of investing in chip-related companies such as AMD. Despite this stock dip, AMD remains a strong player in the tech industry and is well-positioned to weather any economic downturns in the short-term. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for AMD. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for AMD. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for AMD. More…

Key Ratios Snapshot

Some of the financial key ratios for AMD are shown below. More…

Analysis

At GoodWhale, we have conducted an analysis of ADVANCED MICRO DEVICES’s financials. Our Star Chart has identified ADVANCED MICRO DEVICES as a ‘rhino’, meaning that it has achieved moderate revenue or earnings growth. This type of company may be attractive to growth investors, as the potential for performance is greater than with a mature company. ADVANCED MICRO DEVICES is strong in asset and growth, with good profitability. However, its dividend yield is not as high as some other companies. Despite this, it has a high health score of 7/10, indicating its ability to pay off debt and fund future operations. Overall, ADVANCED MICRO DEVICES looks to be a solid company that could appeal to investors looking for growth opportunities. More…

Peers

Advanced Micro Devices Inc. (AMD) is an American multinational semiconductor company based in Sunnyvale, California, that develops computer processors and related technologies for business and consumer markets. Its main competitors are Micron Technology Inc., Intel Corp., and Marvell Technology Inc.

– Micron Technology Inc ($NASDAQ:MU)

Founded in 1978, Micron Technology is one of the world’s leading manufacturers of computer memory and semiconductor devices. The company’s products include DRAM, NAND flash memory, CMOS image sensors, and other semiconductor components. Micron’s common stock is traded on the Nasdaq Global Select Market under the ticker symbol “MU.”

As of 2022, Micron Technology had a market capitalization of $57.13 billion. The company’s return on equity was 12.3%.

Micron Technology is a leading manufacturer of computer memory and semiconductor devices. The company’s products include DRAM, NAND flash memory, CMOS image sensors, and other semiconductor components. Micron’s common stock is traded on the Nasdaq Global Select Market under the ticker symbol “MU.”

– Intel Corp ($NASDAQ:INTC)

Intel Corp is an American multinational corporation and technology company that specializes in the manufacture and sale of semiconductor chips. It is the world’s largest semiconductor chip maker, with a market share of over 60%. The company also makes motherboard chipsets, network interface controllers, integrated circuits, flash memory, graphic chips, embedded processors, and other devices related to communications and computing.

Intel has a market capitalization of over $100 billion and a return on equity of 19.16%. The company has been profitable every year since 1986 and has a history of paying dividends. Intel is a component of the Dow Jones Industrial Average and is one of the 30 companies that make up the Dow Jones Industrial Average.

– Marvell Technology Inc ($NASDAQ:MRVL)

As of 2022, Marvell Technology Inc has a market cap of 32.18B and ROE of 0.5%. The company is a leading provider of semiconductor solutions.

Summary

Advanced Micro Devices (AMD) is a global semiconductor company that designs and produces computing solutions for a wide range of technology markets. In the recent weeks, the stock price of AMD has been on a downward trend, as investors have been selling off their holdings in the tech sector. This sell-off has been largely attributed to the political and economic uncertainty caused by events such as the US-China trade war and Brexit. Analysts suggest that investors are wary of the potential impact of the aforementioned events on AMD’s future growth prospects.

Moreover, the stock has been under pressure due to weak demand for its microprocessors and graphics chips, which have taken a toll on the company’s financial performance. Taking into account all these factors, investors should remain cautious when investing in AMD and consider a long-term investment strategy.