Despite chip stocks trading at new highs, investors should still hold them. Qualcomm (NASDAQ:QCOM), Micron (NASDAQ:MU), and AMD (NASDAQ:AMD) come to mind.
Micron reported Q3 DRAM revenue growing 6% Y/Y. Bit shipments rose 10% sequentially. NAND revenue grew an impressive 50% on the year. The strong operating cash flow, despite the global slowdown, suggests the stock will see new highs sometime this year.
Qualcomm finally established a lucrative patent deal with Huawei. It also reported revenue growing 7% Y/Y to $3.8 billion. Looking ahead, the company’s Q4 will include royalty from Huawei sales. It also adds $1.8 billion in revenue from past-due royalties.
AMD posted second-quarter revenue of $1.93 billion, up 26.1%. it raised its full-year revenue outlook despite the macroeconomic uncertainties.
AMD is growing in multiple markets. In the CPU space, the Ryzen 4000 series offers customers better prices and higher performance. EPYC continues to face no competition from Intel in the server space. Only the GPU – graphics division – is a drag. If AMD refreshes its GPU line-up to compete more effectively against Nvidia (NVDA), the stock’s uptrend could accelerate.
Later this year, the console refresh from Sony and Microsoft will increase revenues for AMD’s semi-custom division.
