Is This the Bottom for AMD?

Summary

Market Mondays: Is This the Bottom for AMD?
Hosted by EYL Network
Release Date: February 21, 2025

---

Introduction

In this episode of Market Mondays, hosted by the EYL Network, stock market experts Rich and Troy delve into the current state of Advanced Micro Devices (AMD) to determine whether the stock has reached its bottom. The discussion extends to comparisons with industry giants like Nvidia, Broadcom, and Taiwan Semiconductor Manufacturing Company (TSM), as well as insights into other influential companies such as Palantir and Robinhood. The episode provides listeners with a comprehensive analysis of AMD's position in the market, the broader AI landscape, and potential investment opportunities in various sectors.

---

AMD's Stock Analysis

Determining the Bottom for AMD

Rich and Troy kick off the discussion by addressing whether AMD has hit its lowest point in the stock market. Rich poses the critical question:

"Do you think the bottom is in for AMD?" [00:58]

Troy responds by evaluating AMD's standing relative to its competitors:

"AMD is like Bill Bradley or something right now. There's a clear separation between the value and performance of those four." [01:02]

He likens AMD to a mid-tier player compared to giants like Nvidia and Broadcom, suggesting that while AMD has strong potential, it may not yet be in pole position within the market.

Optimism Amid Competition

Rich expresses his bullish stance on AMD, emphasizing key upcoming events that could influence the stock's trajectory:

"I think this is the bottom for AMD. The next two weeks are very critical... Nvidia is going to report its earnings and so that will give us a clearer vision on what this AI space looks like." [03:02]

He highlights AMD's recent pullback and current positioning, noting:

"We've seen AMD pull back and drop 20% and now it's sitting in the 130s again." [03:02]

The discussion underscores the importance of upcoming earnings reports and market reactions, particularly from influential companies in the AI sector.

---

Comparative Analysis with Industry Peers

Nvidia, Broadcom, and TSM

Troy draws comparisons between AMD and other tech giants, describing Nvidia, Broadcom, and TSM as leaders that are "light years ahead" [01:02]. This comparison sets the stage for evaluating AMD's performance amidst strong competition.

Palantir and Robinhood: Market Innovators

The conversation shifts to Palantir and Robinhood, where Troy offers a nuanced view:

"Palantir is a clear rock star in the stock market." [02:56]

While expressing some moral reservations about Palantir, Troy acknowledges the company's impressive rebound and innovative strides. Similarly, he praises Robinhood's user-friendly approach and recent updates, which have enhanced its appeal to both beginners and advanced investors:

"Kudos to them. They've made it easy for people who had just begun to invest and that was sort of the knock on them, right?... They actually updated. So kudos to them." [03:02]

Rich concurs, reinforcing their positive outlook on these market innovators.

---

Insights on the AI Market and Upcoming Earnings

AI Sector Developments

Rich underscores the significance of Nvidia's upcoming earnings report in shaping the AI landscape:

"Nvidia is going to report its earnings and so that will give us a clearer vision on what this AI space looks like." [03:02]

He discusses the impact of recent events like the "deep seek" or "deep fake" revelations on AI stocks, noting:

"We saw all the AI stocks take a hit from that. Some of them have rebounded." [03:02]

This segment highlights the volatility and rapid changes within the AI sector, emphasizing the need for investors to stay informed about industry developments.

AMD's Resilience

Despite a significant pullback, AMD's ability to stabilize without collapsing further signals strength in its market positioning:

"The fact that it didn't collapse tells us something about the AI story as well." [03:02]

Rich concludes that AMD's substantial drop prompts a reassessment of its lower bound:

"When you drop 60%, how low can you go?" [03:02]

This rhetorical question encapsulates the uncertainty and potential for recovery within AMD's stock performance.

---

Additional Market Insights

Pharmaceutical Sector: Novo and Lily

Troy shifts focus to the pharmaceutical industry, specifically discussing Novo Nordisk and Eli Lilly:

"If Lily has been overpriced and priced like a tech stock and Novo was too expensive before the run up, they are collapsing now. 52-week low." [05:28]

He suggests that these companies present attractive opportunities for investors seeking exposure at reduced prices, labeling them as "good pharmaceutical plays."

Rich adds context by linking these companies to key products:

"You put Novo obviously with Ozempic, Lily." [06:03]

This analysis broadens the episode's scope, offering listeners diversified investment perspectives beyond the tech sector.

---

Conclusion

In this engaging episode of Market Mondays, Rich and Troy provide a thorough examination of AMD's stock, assessing whether it has bottomed out amidst fierce competition from industry leaders like Nvidia, Broadcom, and TSM. Their optimistic outlook hinges on upcoming earnings reports and the evolving AI landscape, which could significantly influence AMD's trajectory. Additionally, the discussion touches upon the resilience and innovation of companies like Palantir and Robinhood, as well as investment opportunities within the pharmaceutical sector. Rich and Troy's insights offer valuable guidance for investors navigating the complexities of the current market environment.

---

Note: All timestamps refer to the podcast's transcript provided by the user.

Transcript

[Advertiser]

You just realized your business needed to hire someone yesterday. How can you find amazing candidates fast? Easy. Just use Indeed. Stop struggling to get your job post seen on other job sites with Indeed sponsored jobs. Your post jumps to the top of the page for your relevant candidates so you can reach the people you want faster. According to Indeed data, sponsored jobs posted directly on indeed have 45% more applications than non sponsored jobs. Don't wait any longer. Speed up your hiring right now with Indeed and listeners of this show will get a $75 sponsored job credit. To get your jobs more visibility@ Indeed.com podkatz13 just go to Indeed.com podkatz13 right now and support our show by saying you heard about Indeed on this podcast. Terms and conditions apply. Hiring Indeed is all you need.

[Rich]

Do you think the bottom is in for amd?

[Troy]

I'll take the MD question Rich, if we can say together if you don't mind because I want to get that feedback as well. I can you say that there's a bottom end for AMD when tsm, Broadcom, Nvidia then other company you want to talk about later. Troy, you have three clear winners that are light years ahead. Like I love AMD so stock club to be fair. But Nvidia, Broadcom, TSM are like Kyrie level, LUCA level. AMD is like Bill Bradley or something right now see like you over index.

[Rich]

On the disrespect.

[Troy]

Bill Bradley. Damn. It's a clear separation between the value and performance of those four yes, everyone in chat yes or no. So I don't know if the bottom is in yet. I'm still bullish. I think they'll have a great year due to partnerships. As far as Palantir, morally I didn't like it, but you can't argue with the return Robin Hood friend. I do love the way that they're innovator. I like the way they're not just because they're offended the show, but if you look at where they've come from in the last year or two, that rebound has been incredible. And from where they fell from one of the few companies in that era like Zillow who fell that far, who actually rebounded. Like he doesn't get enough credit. Kind of like Dara for turning around Uber. He's done a great job of turning around that company and being innovative when the entire world at one point was against him for kind of like revolutionizing trading. And here now we all of a sudden have 24 hour trading becoming available when they kind of did that and Ushered that in first. So Robin Hood, I like amd. It's gonna be a while before they get in pole position. But I think we all know Palantir is a clear rock star in the start in the stock market.

[Rich]

Yeah, I'm with you. I'm with you on all the things. I think, yes, this is the bottom for amg.

[Troy]

You think so?

[Rich]

I think yeah, this, this is the bottom. I think the next two weeks are very critical and it's kind of been playing, it's been playing out in its favor in a sense when we know the 26th and if you don't have that circle on your calendar, circle in your calendar. That's the Super Bowl. Right. Nvidia is going to report its earnings and so that will give us a clearer vision on what this AI space looks like. Post the deep seek or deep fake, whatever we want to call it. Right. We saw all the AI stocks take a hit from that. Some of them have rebounded. We've seen AMD pull back and drop 20% and now it's sitting in the 130s again. That'll be important. I think the super micro piece was important as well. For sure. The fact that it didn't collapse tells us something about the, the AI story as well. So I think AMD's day is coming. I think, yes, this is the bottom. I mean when you, you drop 60%, how, how low can you go?

[Troy]

Right.

[Rich]

So yes, we talked about Hood last week and when we spoke, well, when we attended the conference, we kind of had a sneak peek under the hood to see what was on the, the innovation side and what they were doing and trying to bring more customers in. Having 24 hour trading, having more equities, having the futures market, some updates on their, on their, their desktop to make sure that was more attractive as well as the options market. We saw what happened inside of crypto and a lot of times when people were outside in the public and we tell people, I asked like, hey, what, what brokerage are you using? Surprisingly, a lot of them are using. Yeah, I'm thinking that they would be using something different. But a lot of people are using Robhood and kudos to them. They've made it easy for people who had just begun to invest and that was sort of the, the knock on them, right? It, it's so beginner friendly that it doesn't feel like it's for advanced people. They heard the feedback and they've actually updated. So kudos to them. So really like them. Palantir, we spoke about hims I mean, this is one of these stories where you look at this chart and it's like, wait, how, how is this happening? So I can't say like a love yet. I'm not. I don't have a position in hims, but I'm definitely watching this. Like, so if anybody's in that position, congratulations. This run has been incredible. We'll see how long they can keep it going. It's like one of these things where I don't. Is there enough data? Like if I go back five years, what does that chart look like? If I go back 10 years, there is no chart. Right. Like so we gotta wait and see on this. But the run has been incredible thus far.

[Troy]

And if Lily has been overpriced and priced like a tech stock and Novo was too expensive before the run up, they are collapsing now. 52 week low. It's a good way to get exposure for a pretty cheap price. Especially if you got it early in the last year, around 25 or 30 bucks. So it was just a good pharmaceutical play or a pharmaceutical derivative for sure. So solid company though. I don't know if they'll ever be a mech. This is a very good company. Good player, not great, but sometimes good will get the job done.

[Rich]

Yeah. So like you put Novo obviously with Ozempic, Lily.

[Troy]

Yeah.

[Rich]

And I mean they're all in that same category. They're competitors as those two have kind of pulled back. We've seen them, they've just been running. So. Yeah, keep eye on that.