Melius Research has identified Advanced Micro Devices (AMD), Intel (INTC), and Apple as key players in the AI “catch-up” trade for the second half of 2024. Market analysts, Julie Hyman and Josh Lipton, are looking into these tech stocks based on insights from Melius Research analyst Ben Reitzes. Reitzes’ note discusses the potential for significant gains in the second half of the year for these companies, especially after underperforming in the first half. The study also highlights the importance of the product cycle for Apple, the comeback of Intel, and the semiconductor market, including MD.
The second half of the year could bring about a turnaround for these tech stocks, similar to trends observed in the previous year. Reitzes emphasizes the potential for growth and improvement in performance for these companies, particularly in relation to AI technology. The note also touches upon the low estimates for Apple’s iPhone franchise and the benefits that AI Ready PCs could bring to companies like Intel and AMD. Additionally, IBM is mentioned for its poor performance in the first half, with potential revenue growth expected due to factors like Red Hat and recent acquisitions.
The stock market is showing a positive trend, with Taiwan Semiconductor taking the lead in market cap and valuation, indicating a rally in chip stocks. Reitzes’ analysis suggests that the AI-related tech stocks, including AMD, Intel, and Apple, could see significant gains in the second half of 2024, positioning them as strong contenders in the market.
In conclusion, Melius Research’s findings point to a promising outlook for AI tech stocks like AMD, Intel, and Apple in the latter half of 2024. The potential for growth and improvement in performance, along with factors like the product cycle, AI Ready PCs, and recent acquisitions, could contribute to a positive market trend for these companies. Investors and analysts are closely monitoring developments in the tech sector, particularly regarding AI technology and semiconductor markets, as these factors could impact stock performance in the coming months.
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