AMD and Alphabet: Stocks to Buy After Market Volatility

The report indicates promising buying opportunities for investors in Advanced Micro Devices and Alphabet following recent share price declines. With favorable P/E ratios and strong growth prospects, both stocks could see significant rebounds in the coming years.

Date: 21-09-2024

AI Rating: 7

The report highlights key opportunities in two major stocks: Advanced Micro Devices (AMD) and Alphabet (GOOGL).

1. Earnings Per Share (EPS): AMD has significant expected growth, with projected EPS increasing by 60% next year, driven by strong demand in the data center segment and AI workloads. Analyst expectations signal that the stock’s P/E of 28 is attractive, considering this earnings growth potential.

2. Revenue Growth: AMD's revenue from data centers has more than doubled year-over-year hitting $2.8 billion. For Alphabet, advertising revenue grew 11% year-over-year in Q2, with projected revenue growth of 13% for next year.

3. Profit Margins: Alphabet's operating income has tripled to $1.1 billion over the year-ago quarter, indicating improved profit margins in its cloud enterprise services.

Collectively, this data creates a favorable outlook for both stocks. AMD's growth in AI and GPUs, compared to Nvidia, suggests a competitive stance in a growing market. Meanwhile, Alphabet's investments in AI applications for Google Search and cloud services position it for recovery and growth.

Investors might find these stocks appealing due to their current P/E ratios below their sector averages and strong projected growth rates, indicating potential for price increases in 2025 and beyond. Thus, both AMD and Alphabet could be worthwhile considerations for investors looking to capitalize on current market trends.

Stocks: NASDAQ:AMD NASDAQ:GOOGL