The market selloff last year has led to a significant drop in prices for technology firms. While many of these companies have traded at high valuations in expectations of high growth, the selloff last year may have pushed a few companies with promising technologies into value territory.
Investors who look at the top tech trends of the next decade can likely find some solid pockets of value today, even among large, established players.
One trend is in artificial intelligence (AI). The concept is still in its early stages, but early AI programming is being used already to find opportunities for companies to improve their operations.
Advanced Micro Devices (AMD) is working on chips that play to a future heavily influenced by AI programming. That puts the semiconductor company in a place to benefit from this growth trend in the years ahead.
Shares have been cut in half in the past year, even as revenue grew by nearly 30 percent. And shares look fairly priced at 17 times forward earnings.
Action to take: Investors may want to accumulate shares at today’s or lower prices with a multi-year outlook in mind. AMD has been at the forefront of the chip space for several years, and its AI Push could increase that lead.
For traders, a long-dated rebound play, like the September $95 calls, last going for about $3.45, look reasonable here. Traders can likely grab high-double-digit returns or higher in the months ahead.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.