The Zacks Analyst Blog Highlights AMD, Dell Technology, NVIDIA and Hewlett Packard

For Immediate ReleaseChicago, IL – January 8, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Advanced Micro Devices AMD, Dell Technology's DELL, NVIDIA NVDA and Hewlett Packard HPE.Here are highlights from Tuesday’s Analyst Blog:Can AMD's Expanding AI PC Gaming Portfolio Aid the Stock in 2025?Advanced Micro Devices at a press conference prior to CES 2025 unveiled new cutting-edge AI PC processors for consumers and businesses. The Ryzen AI Max Series delivers top-tier performance for premium thin laptops, while the AI 300 Series, powered by "Zen 5" architecture, provides expanded options for advanced computing. The AI 200 Series supports everyday productivity.For business applications, AMD introduced Ryzen PRO versions with enterprise-grade security and management tools, strengthening its position in the AI PC market and offering innovation for next-gen computing and modern enterprises.In gaming, AMD unveiled new products to enhance desktop, mobile and handheld gaming experience. The Ryzen 9950X3D and 9900X3D desktop processors feature 16 "Zen 5" CPU cores, AMD RDNA 2 graphics and 2nd Gen 3D V-Cache technology, delivering enhanced performance. The Ryzen X3D processors are expected to be available in the first quarter of 2025.AMD's latest Ryzen Z2 handheld gaming processor powers AAA titles smoothly, and the Ryzen 9000 mobile processors bring high performance to gaming laptops. These innovations deliver higher clock speeds, cooler performance and exceptional gaming experiences.Furthermore, AMD announced that its Ryzen AI PRO processors would power the new Dell Technology's Pro commercial notebooks, desktops and workstations. This marks the first full portfolio of Dell commercial PCs to be powered by these processors.AMD Stock Underperforms SectorAMD shares have lost 11.4% over the past year, underperforming the Zacks Computer and Technology sector's return of 38.1% and the Zacks Computer – Integrated Systems industry's return of 11.8%.AMD's performance has been negatively impacted by weakness in the Embedded segment, which has been facing declining demand, and intense competition from NVIDIA, putting pressure on AMD's market share.Can Acquisitions Boost AMD's AI Prospects in 2025?AMD has been on an acquisitive spree to strengthen its AI ecosystem and bridge the technological gap with NVIDIA in the race for AI dominance.The acquisition of ZT Systems, which provides AI infrastructure to large hyperscale computing companies, is noteworthy. ZT Systems will enable AMD to simultaneously design and validate its next-generation AI silicon and systems. The move is expected to speed up the large-scale deployment of data center accelerators, which are critical for AI innovation.The acquisition of Helsinki-based Silo AI further enhances AMD's AI development capabilities. Nod.ai and Mipsology are some other notable acquisitions in the recent past.A Rich Partner Base Bodes Well for AMDAMD benefits from a strong partner base, with Microsoft, Oracle, DELL, Hewlett Packard, Lenovo, and Supermicro all having the instinct platforms in production.AMD powers the El Capitan supercomputer with its Instinct MI300A APUs. Housed at Lawrence Livermore National Laboratory and built by HPE, it has become the fastest on the Top 500 list with a 1.742 exaflop High-Performance Linpack score.Advanced Micro Devices also recently announced a partnership with IBM to offer AMD Instinct MI300X accelerators on IBM Cloud, further advancing HPC and AI capabilities.AMD's 2025 Earnings Estimates Trend DownwardThe Zacks Consensus Estimate for AMD's 2025 earnings is currently pegged at $4.88 per share, down 0.61% over the past 30 days, indicating year-over-year growth of 47.58%.The consensus mark for 2025 revenues is pegged at $32.27 billion, indicating year-over-year growth of 25.77%.AMD beat the Zacks Consensus Estimate in three of the trailing four quarters, and was in-line in the remaining quarter, the average surprise being 1.86%.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.AMD Stock OvervaluedAMD stock is currently overvalued, as the Value Score of D suggests a stretched valuation at this moment.The stock is trading at a premium with a forward 12-month Price/Sales of 6.49X compared with the industry's 3.34X.What Should Investors Do with AMD Stock?AMD's expanding portfolio and strategic acquisitions are expected to improve its top-line growth. However, its near-term prospects are dull, given the weakness in the Embedded segment and competition from NVIDIA.Stretched valuation is a concern.The stock is trading below the 50-day and 200-day moving averages, indicating a bearish trend.AMD currently has a Zacks Rank #3 (Hold), suggesting that it may be wise for investors to wait for a more favorable entry point to accumulate the stock. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.com                                      https://www.zacks.com                                                   Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.1% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report Dell Technologies Inc. (DELL): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report Hewlett Packard Enterprise Company (HPE): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks