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1 Little-Known Tech Stock to Buy Instead of AMD

1 Little-Known Tech Stock to Buy Instead of AMD

Posted On November 1, 2022 1:08 pm
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Renowned chip maker Advanced Micro Devices, Inc.’s (AMD) bottom line declined significantly in its last reported quarter. Its operating income declined 36.7% year-over-year to $526 million. Its net income and EPS came in at $447 million and $0.27, down 37% and 53.4% year-over-year, respectively.

Moreover, on October 6, the chip maker slashed its revenue guidance for the third quarter, citing weakening demand for personal computers that equip its chips. “The PC market weakened significantly in the quarter. While our product portfolio remains very strong, macroeconomic conditions drove lower-than-expected PC demand and a significant inventory correction across the PC supply chain,” said AMD Chief Executive Lisa Su.

The company now expects about $5.60 billion of sales for the quarter ended September 30, about $1.10 billion less than the previous estimate. Sales are expected to be 15% down from the prior quarter. Also, the stock has declined 30.8% in price over the past six months and 58.7% year-to-date.

Therefore, investors should consider a relatively profitable tech stock CEVA, Inc. (CEVA), instead of AMD. The company operates as a leading licensor of wireless connectivity and intelligent sensing technologies, and co-creation solutions worldwide.

“We delivered solid second-quarter results against a challenging macroeconomic backdrop. Our wireless connectivity IP continues to drive our licensing business, which is a cornerstone of the IoT market. We continue to capitalize on our strength in wireless to make inroads to a new customer base and add value via our co-creation business proposition,” said CEVA’s CEO, Gideon Wertheizen.

The company’s cumulative royalty-bearing chip shipments, including CEVA IP, surpassed 15 billion units during the second quarter. The rapid adoption rate of CEVA’s IP in the IoT era is a testament to the company’s role in democratizing wireless connectivity through the broad licensing of its 5G, cellular IoT, Bluetooth, Wi-Fi, and UWB platform IP to hundreds of OEMs. 

Furthermore, in September, CEVA introduced PentaG-RAN™, the industry’s first 5G baseband platform IP for ASICs targeting cellular infrastructure in the base station and radio configurations. This heterogeneous baseband compute platform is designed to significantly reduce the entry barriers for companies looking to enter the new market opportunities available in Open RAN equipment.

CEVA has gained 4.5% over the past month to close the last trading session at $27.62. Moreover, Wall Street analysts expect the stock to hit $46.75 in the near term, representing a 69% upside potential.

3 STOCKS TO DOUBLE THIS YEAR

Here is what could influence CEVA’s performance in the upcoming months:

Solid Financials

CEVA’s total revenues came in at $33.20 million for the fiscal 2022 second quarter ended June 30, 2022, up 9% year-over-year. Moreover…

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