The stock market posted gains on Friday after the release of cooler-than-expected inflation data. November’s Personal Consumption Expenditure (PCE) price index rose 2.4% year-on-year, a slightly uptick from October 2.3% but lower than economists’ estimates of 2.5%.
Overall, S&P 500 and NASDAQ increased 1.0% to 5,931 and 19,573, respectively.
Tweet of the Day
Might be time to sell our Adobe stock. This is in my Conservative Portfolio. I'm concerned about all the competition in the space. And a drop like this isn't good for a conservative portfolio. $ADBE https://t.co/m8WxvTvyf8
— David Sharek (@GrowthStockGuy) December 14, 2024
Chart of the Day
Here is the ten-year chart of Advanced Micro Devices (AMD) as of November 19, 2024, when the stock was at $139.
In last quarter’s earnings call, Advanced Micro Devices delivered robust results driven by explosive growth in its AI-driven Data Center segment. The company managed to deliver 31% profit growth on 9% revenue growth. Its Data Center segment delivered 122% revenue growth and contributed 52% of the total revenue.
AI-driven demand might ramp up as Advanced Micro Devices gets ready to release its next big chip – the MI325X, a high performance computing (HPC) and AI processing unit designed for data centers. This new chip, expected to ship by the end of the year, performs 20% better than NVIDIA H200 and will be widely available by early 2025.
However, investors were uninspired by the Company’s Gaming (-69% revenue growth) and Embedded (-25% growth) divisions. David Sharek, Founder of School of Hard Stocks, believes this is why the stock is so weak.
AMD is part of our Growth Portfolio, but David Sharek is a bit unimpressed with the stock’s performance.
