The potential of decreased consumer spending has been a contributing factor in the impact to semiconductor stocks. In this clip from "Ask Us Anything" on Motley Fool Live, recorded on May 4, Motley Fool contributor Jose Najarro discusses how AMD (AMD -0.82%) is still demonstrating strength despite market volatility, and explains why now might be an optimal time to buy its stock.
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Jose Najarro: AMD definitely had a great quarter last night. The stock price, I believe, is up about 5% after hours. One of the biggest things impacting the overall semiconductor industry right now is the fear of consumer spending decreasing and we're seeing a lot of these semiconductor companies are in things like laptops and cellphones and TVs. That fear has pulled down a lot of the semiconductor stock prices. Yesterday, AMD showcased that, "Hey, we're still strong in the consumer market," but they are also very strong in the enterprise market with their cloud providers of servers. That also saw strong growth. Their processors, which are used by [Alphabet] Google (GOOG -1.91%) (GOOGL -1.80%), by Amazon (AMZN -0.22%), by Microsoft (MSFT 0.06%) for their cloud services, grew 100% in revenue for the third quarter straight, just because of the overall strength of the adoption of their technology. The semiconductor, in general, is one that I'm really excited about. Let me just share my screen real quick for advanced AMD events micro devices. We can see revenue has increased. They haven't included the new quarter, but we can see the stock price. In late 2020-2021, it was pretty much flat and the prices we're sitting at right now, are those prices between 2020 and 2021. I want to say, I personally did not invest in a lot of semiconductor stocks in the past year or the past year and a half, but now since things have cooled down, this is the market I'm really focused on at the moment.