Fast Money Blog- 8/4/23

On Tuesday, August 1st, Advanced Micro Devices, Inc. (AMD) released their earnings reports. 

AMD announced top-line revenue for Q2 2023 of $5.4 billion, down 18% year-over-year, mostly due to a drop in PC sales. 

Data Center segment revenue was $1.3 billion, down 11% year-over-year.

Client segment (which includes PC chips) revenue was $998 million, down 54% year-over-year.

Presently AMD is increasing its AI-related research and development spending, and has developed a strategy that includes AI-specific chips and software development. The company announced a new chip intended to build and run the kind of AI models that are at the heart of applications like ChatGPT. 

For now I still consider AMD a good date, but one more quarter of declining revenue would make this a stock that no longer makes a good date by Wealthy Investor standards. 

Thursday, May 3rd, was a big day on Wall Street as earnings reports from Apple, Inc. (AAPL) and Amazon.com, Inc. (AMZN) were released. 

Apple released its Q3 2023 earnings with quarterly revenue of $81.8 billion, down 1.4% year-over-year, due to slower sales on its iPhone segment. 

The bright spot for Apple was that they reached an all-time revenue record in their Services segment which took in $21.2 billion, up more than 8% year-over-year. This segment includes Apple TV, Apple Music, Apple Fitness, Apple Cloud and the Apple App Store, just to name a few. 

Wall Street has temporality sold off Apple shares because the company did not mention AI during its conference call. 

However, Apple continues to be a powerhouse that will continue to lead the Dow and S&P over the next 6 months. 

Amazon.com delivered outstanding Q2 2023 earnings with wins in both revenue and profits. Top-line revenue for the quarter came in at $134.3 billion, an increase of 11% year-over-year.  

Amazon also saw ad revenue climb 22% year-over-year to $10.7 billion. The company also recorded a profit of $6.7 billion, compared to a loss of $2 billion in the same period a year ago.

Amazon continues to make a great trade and a long-term hold. 

As you know volatility typically slows down in the month of August.

Stay positive and stay patient!

Tyrone Jackson

The Wealthy Investor