Only a week after Robinhood’s IPO that didn’t gain much traction in the first few days, the stock skyrocketed more than 100% above the debut price of $38 per share on Wednesday. As shares of the fintech company traded at $77, investors questions if the meme trade was back again?
Interestingly enough, another stock that has recently received attention from retail investors is Advanced Micro Devices Inc (NASDAQ: AMD). Before reporting quarterly results, the stock was trading around $90 a share versus close to $120 a share at the time of writing.
Michael Lippert’s comments on CNBC’s “The Exchange”
Commenting on a sharp 30% rally in AMD stock, Michael Lippert, portfolio manager at Baron Opportunity Fund, said on CNBC’s “The Exchange”:
AMD is a very real company underneath the retail trading frenzy. There’s a big, long-term trend whether you think about what’s going on with artificial intelligence, whether you think about building out data centres, whether you think about what they’re able to do in computing versus their competitor Intel. So, there’s much more to fuel a long-term trend in AMD compared to Robinhood.
Baron Opportunity Fund is up more than 10% this year. Compared to the pandemic low in March 2020, it has gained over 100%.
AMD’s Q2 financial results
The news comes a week after AMD reported $1.93 billion of revenue and 13 cents of per-share earnings for its fiscal second quarter. According to Refinitiv, experts had forecast a lower $1.86 billion of revenue but a higher 16 cents of per-share earnings in Q2.
During the COVID-19 crisis, Advanced Micro Devices was seen trading at a low of $40 a share in March 2020. The California-based company now has a market cap of $145 billion and a price to earnings ratio of 42.71.
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Wajeeh Khan
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