This last week was eventful as a lot of big firms announced their Q1 results. Here's a summary of AAPL and AMD.
The big news is that Apple announced a significant move to repurchase $110 billion worth of its own shares, marking a 22% increase from the previous year's authorization and setting a record as the largest buyback in history.
This overshadowed the 4% decrease in overall sales and a 10% decline in iPhone sales compared to the previous year. The stock is currently up on this news of the huge buyback.
Good news is that CEO Tim Apple emphasized the company's enthusiasm for its forthcoming generative AI offerings, underscoring substantial investments in the technology and expressing confidence in its potential. Expect the new Siri to have some type of ChatGPT functionality likely.
Alright, so Apple reported poor sales and their stock is up... AMD reported a sales beat and... their stock is down.
Even though AMD had a sales beat, Wall Street analysts noted that the outlook for AI growth within AMD might not be as robust as some had hoped. AMD bulls might've been disappointed in the company's forecast for MI300 chips in 2024, which came in at $4 billion. While an increase from the prior guide of $3 billion, it felt short of more overly optimistic outlooks for a range of $5 billion to $6 billion. The stock is down in the 140's and I am 100% loading up on shares here. Demand for their chips is super high and they are struggling to make them fast enough. In my opinion this is a buy the dip moment.
