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Carlsquare/Vontobel weekly trading note: A strong market awaits next week´s Fed decision
Prenumeration
This week's case is Advanced Micro Devices, which is a way to get exposure to AI development other than Nvidia. However, AMD is trading at high multiples after its recent run-up. This week's macro focus is on last week's US employment report and US inflation figures. Next week's focus will be on the Fed and its interest rate policy.
So far in 2024, Advanced Micro Devices' (AMD) share price has risen significantly, driven by enthusiasm surrounding the launch of the company's MI300A APUs and MI300X GPUs for AI, and boosted by positive early sales data. In terms of valuation, AMD's current market capitalisation of around $290bn is hard to justify given its trading multiples of almost 50x forward earnings and 11x forward sales. With a forward P/E of 32x, Nvidia looks comparatively more attractive than AMD.
After a strong US employment report on Friday the 8th and yesterday's slightly above consensus US CPI figure for February, the market is now looking forward to the US PPI figure on Thursday the 14th and the Fed's interest rate decision next week.
Please find out more in our weekly letter on certificates Vontobel.com: Read the weekly newsletter here
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