Australia markets close in 3 hours

AMD Jun 2025 330.000 put

OPR - OPR Delayed price. Currency in USD
Add to watchlist
148.650.00 (0.00%)
As of 09:59AM EDT. Market open.
Full screen
Loading interactive chart…
  • Yahoo Finance Video

    We're starting to see return on AI investments: Portfolio manager

    Most Magnificent Seven tech stocks have underperformed the S&P 500 (^GSPC) so far this year, and the tech sector is attempting a recovery from a lackluster third quarter. The Magnificent Seven is currently comprised of Meta Platforms (META), Microsoft (MSFT), Alphabet (GOOGL, GOOG), Amazon (AMZN), Apple (AAPL), Nvidia (NVDA), and Tesla (TSLA). T. Rowe Price portfolio manager Dominic Rizzo joins Market Domination to discuss how investors can best play the tech sector. Many investors were disappointed during the second quarter earnings season as they looked for significant returns on their AI plays. Rizzo expects this theme to also prevail over the upcoming tech earnings season. However, he argues, "when I look at the return on investment for the hyperscalers and for the entire technology sector, I actually think we're starting to see it." He points to Meta Platforms (META) as an example, explaining, "At one point during the year, people thought that Meta would have Q4 growth rates in the mid-single digits. Now, that number is closer to 20%. And why is that? That's because they've been able to use AI to get a lot better targeting in their core advertising business." He also believes that Apple (AAPL) will see the beginning of an upgrade cycle as it offers AI capabilities on its iPhone 16 series. In addition, he argues that Nvidia (NVDA) is in the best position as the company is "selling the linchpin technology to all of these vendors." While the Magnificent Seven has been under pressure, Rizzo tells Yahoo Finance, "I think the divergence that we've seen amongst the Magnificent Seven, and between the Mag Seven and the S&P 493, is really quite natural." Rizzo notes that the Magnificent Seven has historically grown earnings at a rate of 50 to 100% faster than the rest of the S&P 500. He expects that to continue over the medium term, especially as many of the Magnificent Seven players are well-positioned for AI. However, at this moment, he explains that they are trading only at a 50% premium to the rest of the market, making them cheaper based on a price/earnings-to-growth (PEG) ratio. He finds AI will continue to drive innovation and push further growth in mega-cap tech names. With this dynamic at play, Rizzo expects the AI chip market to grow to $400 billion by 2027. To watch more expert insights and analysis on the latest market action, check out more Market Domination here. This post was written by Melanie Riehl

  • Yahoo Finance

    Nvidia highlights AI software and services at D.C. AI Summit

    Nvidia highlighted a number of its software offerings and customers during its AI Summit in Washington, D.C., on Tuesday.

  • Insider Monkey

    Cramer Thinks Advanced Micro Devices, Inc. (AMD) Is A Buy Ahead Of Its Analyst Day

    We recently published an article titled, 11 Stocks on Jim Cramer’s Radar Right Now. In this article, we are going to take a look at where Advanced Micro Devices, Inc. (NASDAQ:AMD) stands against other stocks on Jim Cramer’s radar right now. In his recent episode of Mad Money, host Jim Cramer focused on the upcoming […]