These 2 Tech Stocks are Surging

Shares of Weibo and Advanced Micro Devices are moving strongly to the upside, while Dow Jones component Intel disappoints.

Apr 21, 2014 at 11:30AM

The Dow Jones Industrial Average (DJINDICES:^DJI) had risen 31 points as of 11:30 a.m. EDT. Intel (NASDAQ:INTC) was the index's worst-performing technology stock, but other tech names -- including the recently IPOed Weibo (NASDAQ:WB) and Advanced Micro Devices (NASDAQ:AMD) -- surged to the upside.

European markets remain closed
Most European stock markets on Monday remained shuttered in the wake of the Easter holiday, including France, Germany, Norway, Spain, the U.K., Switzerland, and Italy. Some emerging markets were also closed, including Brazil and South Africa. Most Asian markets were open for trading, but Hong Kong was an exception.

With many major markets closed, and few economic reports, it was no surprise that the Dow Jones was relatively unchanged during Monday's session. Still, investors shouldn't expect the malaise to continue throughout the week -- a number of major earnings reports and economic releases could bring some volatility back to the Dow Jones in the days ahead.


Source: Wikimedia Commons.

Intel sputters as AMD rises
PC chipmaker Intel fell just 0.5% in early trading -- a relatively modest drop for the tech giant. There weren't any major reports or news releases to explain Intel's move to the downside.

If there was a reason for Intel's sell-off, it may have had something to do with the earnings report from rival AMD. The two companies produce nearly all x86 processors, the chips powering traditional laptop and desktop PCs. Intel takes the vast majority of the market -- historically well more than 80% -- while AMD's chips account for the rest.

AMD shares at one point Monday were up more than 10% following an earnings report that exceeded analysts' expectations. Wall Street had expected AMD to report revenue of $1.34 billion, just breaking even for the quarter. But AMD generated revenue of $1.40 billion, with an adjusted earnings per share of $0.02.

That might have been seen as a positive for Intel -- if AMD was doing more business, the steady erosion of the traditional PC market (Intel's bread and butter) may have abated to some extent. However, it wasn't processors that allowed AMD to beat expectations, but rather graphics cards and video game consoles. AMD's chips power the recently released PlayStation 4 and Xbox One consoles, while its high-end graphics cards are sold to PC gamers and computing enthusiasts -- markets in which Intel plays no role.

Weibo remains volatile
Shares of the Chinese social media company rallied more than 10% in early trading. As with Intel, there wasn't much news to explain Weibo's move, but the volatility is hardly surprising.

Weibo only began trading last Thursday, and it has seen regular, aggressive moves. Even at these $22.57 as of 11:30 a.m. Weibo is still below its midsession high -- it traded near $24.50 on Thursday before experiencing a sharp sell-off. Investors who managed to snap up shares of Weibo at its IPO price of $17 are sitting on solid gains.

Intel is betting big on this huge market
With the traditional PC in decline, Intel is planning an aggressive push into a radical new market, hoping its chips can power the next-generation of revolutionary new devices. If you thought the iPod, the iPhone, and the iPad were amazing, just wait until you see this. One hundred of Apple's top engineers are busy building one in a secret lab. And an ABI Research report predicts 485 million of them could be sold over the next decade. But you can invest in it right now... for just a fraction of the price of AAPL stock. Click here to get the full story in this eye-opening new report.

Sam Mattera has no position in any stocks mentioned. The Motley Fool recommends Intel. The Motley Fool owns shares of Intel. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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