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Several semiconductor stocks spiked decisively Friday as the shortened trading week comes to a close.
Advanced Micro Devices (NASDAQ:AMD) climbed nearly 5%. The Sunnyvale, Calif.-based company added more than 10% over the past five trading sessions as it continues to expand data center revenue.
Intel (NASDAQ:INTC) ticked up nearly 2%. Despite the company’s exposure to AI PCs and data center demand, its stock has declined nearly 40% year-to-date while others in this space have demonstrated record growth.
Seeking Alpha analysts and contributor DT Invest believes the stock is underrated.
“The reason for the latest INTC sell-off was softer-than-expected guidance from the management for the remainder of 2024,” DT Invest notes. “However, it appears to be a shortsighted reaction because as investors we should pay more attention to longer-term horizons.”
“Intel generates notably more Data Center revenue compared to wildly overvalued Advanced Micro Devices,” DT Invest added. “The company spends much more on R&D than NVIDIA Corporation (NVDA) and AMD and released its Gaudi 3 accelerator, which is more powerful than Nvidia’s H100, according to the company.”
DT Invest rates Intel a Strong Buy.
Arm Holdings (NASDAQ:ARM) led the pack in gains as it tacked on 7% by mid-afternoon trading. Arm shares have spiked nearly 40% over the past month. It joined the Nasdaq 100 Index on June 24.
Arm has significant partnerships that are beginning to take shape, including one with Microsoft (MSFT) to develop the Neoverse CSS that crates specialized solutions for AI infrastructure and networking devices. Arm also has a deal with Google (GOOG)(GOOGL) for their Axion processor. Arm is partnering with Oracle (ORCL) and Amazon (AMZN) as well.
“As each of these firms further develop their high-performance processors to bolster the speed, reliability, and power reduction, I believe ARM will realize a significant growth opportunity that will take the firm well beyond their smartphone-entrenched market,” said Seeking Alpha contributor Michael Del Monte.
However, Micron Technology (MU) dipped more than 3% on Friday after a senior executive warned of possible over-capacity issues in a report.