Chaowei Semiconductor is one of the best performing chip stocks this year, but questions about AI capital expenditure are currently heating up. The company will release its earnings report on Tuesday afternoon. AMD can only maintain its upward momentum by handing over impressive results and providing optimistic guidance. Neville Javary, fund manager of Allspring Global Investments, holds AMD shares. He said, “If you want to maintain the upward trend, you need not only surpass expectations, but also greatly exceed expectations, and at the same time be supported by very positive performance guidelines. A lackluster financial report is not enough.” Although Wall Street generally expects AMD to perform well, investors now sell off quickly if they see signs that fall short of expectations. Intel recorded its worst single-day performance since 1982 on Friday, driven by weak performance guidance. Prior to that, tech giants that invested heavily in AI, such as Alphabet, Meta, and Amazon, were also under pressure — huge capital expenditure continued to consume cash flow. Wall Street analysts expect AMD's third-quarter profit to rise 92%, revenue to grow 41%, and expect both metrics to continue to rise in 2027. CEO Su Zifeng said last month that the company predicts that demand for chips in the next few years will be “extremely high” and will be in short supply. Jim Warden, the chief investment officer of Wealth Consulting Group, has sold AMD holdings on the grounds that environmental uncertainty is compounded by high valuations; however, he continues to hold other chip targets such as Nvidia, Broadcom, and TSMC. He said, “Products such as Muse are likely to drive AMD from steady growth to a hyper-rapid growth stage, but I have too many questions about the current valuation,” he said.
Zhitongcaijing · 1d ago
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Chaowei Semiconductor is one of the best performing chip stocks this year, but questions about AI capital expenditure are currently heating up. The company will release its earnings report on Tuesday afternoon. AMD can only maintain its upward momentum by handing over impressive results and providing optimistic guidance. Neville Javary, fund manager of Allspring Global Investments, holds AMD shares. He said, “If you want to maintain the upward trend, you need not only surpass expectations, but also greatly exceed expectations, and at the same time be supported by very positive performance guidelines. A lackluster financial report is not enough.” Although Wall Street generally expects AMD to perform well, investors now sell off quickly if they see signs that fall short of expectations. Intel recorded its worst single-day performance since 1982 on Friday, driven by weak performance guidance. Prior to that, tech giants that invested heavily in AI, such as Alphabet, Meta, and Amazon, were also under pressure — huge capital expenditure continued to consume cash flow. Wall Street analysts expect AMD's third-quarter profit to rise 92%, revenue to grow 41%, and expect both metrics to continue to rise in 2027. CEO Su Zifeng said last month that the company predicts that demand for chips in the next few years will be “extremely high” and will be in short supply. Jim Warden, the chief investment officer of Wealth Consulting Group, has sold AMD holdings on the grounds that environmental uncertainty is compounded by high valuations; however, he continues to hold other chip targets such as Nvidia, Broadcom, and TSMC. He said, “Products such as Muse are likely to drive AMD from steady growth to a hyper-rapid growth stage, but I have too many questions about the current valuation,” he said.
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