An e-zine that keeps you informed on the hottest trends on Wall Street, provides you with the key information to make you filthy rich (*your results may vary)
by Joseph Hargett | April 5, 2022
Great Ones, there’s this girl that’s been on my mind … all the time, CEO Lisa Su-Sussudio.
Now, she don’t even know my name, but I love AMD stock just the same … CEO Lisa Su-Sussudio.
And, Great Ones, Advanced Micro Devices (Nasdaq: AMD) is calling right now. Will you come running? Anywhere? AMD’s all you need, all your life. You’ll feel so good if you just invest. Lisa Su-Sussudio…
Wait … that’s Phil Collins, right? You’re really hitting the ‘80s pop genera lately. Done with the heavy stuff?
I go where my ‘80s addled brain takes me, y’all. And with AMD and CEO Lisa Su … well, my brain spat out Phil Collins. It is what it is.
What’s more, AMD just doubled down on taking data center market share from Intel.
Yesterday morning, AMD announced that it is buying privately held cloud computing startup Pensando for $1.9 billion. In Spanish, “pensando” means thinking … and Great Ones, AMD really is thinking about the future with this acquisition.
Pensando is touted as a “cloud computing” company or an “edge computing” startup … but what that really means is data center computing. The company has already roped in several big-name clients for data center operations, including Goldman Sachs, Microsoft, Hewlett Enterprise and Oracle.
That’s great and all, but what does Pensando actually do, and is it worth $1.9 billion?
Well, you know how AMD is already stealing data center market share from Intel? The Pensando acquisition doubles down on the data center. Pensando offers hardware and software that speed up and streamline data center operations.
If you’re into the geeky stuff, the company offers a programmable packet engine and a complete software stack designed to greatly speed up networking, security, storage and other cloud, enterprise and edge applications.
Basically, Pensando will help AMD gobble up more data center market share from Intel. But you don’t have to take my word for it. Here’s AMD CEO Lisa Su talking about exactly this:
Now, some AMD investors might be concerned about this acquisition — especially since AMD just completed its buyout of Xilinx last year. But have faith, young padawans. AMD is killing it with acquisitions lately.
Last year, AMD saw revenue rise 68% despite paying $50 billion for Xilinx. Furthermore, gross margin came in at 51%. In other words, the $1.9 billion Pensando acquisition should be but a blip on AMD’s financial statement.
Speaking of which, AMD will report first-quarter financial results in about three weeks or so. Right now, analysts are expecting earnings of $0.92 per share on revenue of $5.6 billion.
Remember, those are the consensus averages. The actual ranges are $0.84 to $0.96 for earnings per share and $5.5 billion to $5.67 billion for revenue.
Taking the consensus average, AMD is expected to see a 77% surge in earnings and a 62% spike in revenue for the quarter. That’s impressive … especially considering all the hurdles this year. I’m talking semiconductor supply shortages, worker shortages, pandemic issues, supply chain issues, etc.
Despite all that, AMD continues to rake in the cash and think about the future by purchasing Pensando. And it’s all because of CEO Lisa Su. In Su we trust, indeed.
So, Great Ones, if you don’t already own AMD stock — and you should because I’ve recommended it numerous times in the Great Stuff Picks portfolio — now’s your chance. And if you do already own AMD stock, it’s time to double down and add more.
Seriously, AMD stock is more than 51% off its all-time highs and continues to bounce along support near $100. AMD is a steal at $100 per share or below, and I can’t see the stock dipping much further in the absence of a broader market sell-off — I’m looking at you, Federal Reserve.
For the foreseeable future, I believe that AMD is definitely a “buy the dip” kinda stock.
AMD? I’m all full … what else ya got?
It’s called “Imperium” … something that only science geeks know about right now (no shame here). But according to experts, Imperium is set to go from 1 million users to having 2 billion in the next four years, launching a stock market “gravy train” that almost nobody sees coming.
It seems like only yesterday that Wall Street was all wound up over Elon Musk’s disclosure that he owns a 9.2% stake in Twitter (NYSE: TWTR). Wait…
Despite Dan Ives’ — and everyone else’s — best guess, it looks like the narrative that Musk might buy Twitter outright is dead.
This morning, the social media magnate announced that Musk had joined its board, meaning he won’t be able to buy more than 14.9% of the company as an active member.
Fortunately for Twitter, while Musk may have input into the company’s future … that doesn’t mean the rest of the board has to listen to him.
Unfortunately for Twitter, Jack Dorsey will only remain on Twitter’s board until the 2022 stockholder meeting on May 25. In other words, there won’t be anyone to counterbalance Musk’s … ahem, strong personality. Best of luck, lads.
Not only did electric vehicle (EV) maker Nio (NYSE: NIO) catch a stray upgrade yesterday from UBS Analyst Paul Gong … but rumor has it the car company is also in talks to license its battery-swapping tech to other automakers in Europe.
If true, it’s a smart move on Nio’s part.
For one, swappable batteries can cut a car’s charging time down to the bone … negating one of the biggest complaints from Negative EV Nancies. For two, Europe is a good place for Nio to workshop its battery packs because Europe actually takes EVs seriously.
Now if only we could close the financial disclosure gap between U.S.-listed Chinese companies … Nio might once again become The One the EV Oracle spoke of. Like Morpheus, I haven’t given up hope.
To celebrate National Burrito Day — that’s two days from now, for those of us who’re most definitely counting — Chipotle Mexican Grill (NYSE: CMG) is launching a burrito-rolling game in Roblox (NYSE: RBLX) that will allow players to earn “Burrito Bucks” they can exchange for real-world food.
While fun in theory, let’s just hope Roblox doesn’t slap the same 30% conversion fee on to Burrito Bucks that it does for in-game Robux. Otherwise, gamers might give it all they’ve guac on April 7 and still be told to taco hike … I said what I said.
First it was automated trading machines, and now it’s robotic stock pickers. What won’t Wall Street and Main Street have to compete with next?
In case you haven’t heard, three former DeepMind employees who used to work at IBM (NYSE: IBM) have developed an AI called DeepStack that’s learning to spot stock and crypto trading opportunities before they climb higher.
“Most of the trading out there is already algorithmic,” said Martin Schmid, one of the AI’s creators. “We just want to do better algorithms than the ones that are already out there.”
Better AI algorithms, you say? Why, Adam O’Dell already knows all about this … and which companies will set investors up to make the biggest gains from the coming AI mega boom. (To learn more, click here.)
Huh. Well speak of the budget-priced devil!
I know we’ve had more than our fair share of talking head understatements in recent Quotes of the Week. (Quotes of the Weeks? Yeah, let’s go with that.) But there’s something to be said of, well, someone saying the quiet part out loud.
Let’s face it: It doesn’t matter how cyber-y and futuristic you make your electric truck — Musk — if it takes nine years and selling a few organs to pay off the dang thing, you’re not selling as many vehicles as you potentially could.
Umm, I think you underestimate the human tendency to overspend.
Sure, Teslas might currently be the face of EVs on the street, but they are far from representing the peak of EV affordability. The mainstream, Main Street America EV market still needs its electric Nissan Altima, its plain box van or its Pinto. Ugh, I really hope it’s not an electric Pinto though…
Today’s budget-conscious commentary comes as General Motors and Honda Motors announce a partnership to develop cheaper EVs under both brands. Like … under $30,000 kinda cheap. And in case you’ve been avoiding the car lot for a few decades (I don’t blame you), that is reeeeally cheap in EV land.
Besides, GM already has its toes deep into the $50,000-plus pavement princess truck market, and you better believe GM will milk that ultra-profitable market dry. (Don’t look too deep into the metaphor, it stares back.)
It’s about time the don of Detroit offered something cheaper for, you know, the rest of us. And that’s exactly where Honda comes into the picture:
Mmm, so it’s all about those global-scale shared architectures. They go great with combined corporate synergies and streamlined process workflows. Anyway…
My simple, non-car-guy math tells me this: GM fancies itself some kind of expert in this newfangled EV platform tech. I don’t necessarily agree with it (shout out to you lightning Bolt owners), but it is what it is.
Honda is good at making stuff cheap and having it run (or limp) along for a very long time. GM can make stuff cheap, but then it’s going to suck. Like, even more than it usually does.
Now, GM and Honda both want to make loads of EVs, their eyes dazzling with imagined EV market dominance. GM’s global reach ain’t too shabby, but it’s no Honda. Plus, Honda isn’t as far ahead in the electric platform game as GM thinks it is, so … you get this shotgun wedding kinda matchup.
Personally? It’s a bold move on both Honda’s and GM’s parts, and I’ll believe it all when I see it. (Go figure.) I mean, imagine getting hyped up about new GM EVs and all you get is an electric Chevy SSR with flame-burst graphics?
But, but, Great Stuff! Won’t the real crux of EV adoption be the inability to do simple and affordable repairs at home like with old gas cars?
Shhh, let the people have hope for now… Don’t want to rile up the right-to-repair crowd this early in the week.
Anyway, if all this sounds a bit familiar, it should — Charles Mizrahi’s been preaching to the budget-conscious choir for a hot minute now about the price of EVs.
According to Charles: “For EVs, the tipping point — affordability — may finally be arriving, thanks to a brand-new battery technology. It was the same with digital cameras … flat-screen TVs … laptops … you name it.”
“As soon as they become affordable, demand increases, and sales soar. Now … this stunning new technology is about to cut the cost of EV batteries IN HALF, meaning by next year, an EV is expected to cost the same as a gas-powered car.”
After you’ve checked that out, let me know what you think about it in the inbox! Which side are you on for the AMD vs. Intel data center brawl, and why is it AMD? Do you think battery-swapping tech will take off for the EV market?
GreatStuffToday@BanyanHill.com is where you can answer all these questions and more — or simply make up your own questions and rant away. Once you’ve shared your thoughts, here’s where else you can find us across the interwebs:
Until next time, stay Great!
Editor, Great Stuff