Investors are jumping on the bandwagon with these 2 Nasdaq stocks
The stock market has been looking for signs of stability lately, and on Tuesday major market benchmarks once again demonstrated their resilience. Taking a more positive view of the ability of the world’s largest companies to overcome the challenges they face, market participants have driven stock prices higher. At 1:45 p.m. ET, the Nasdaq Compound (^IXIC 2.17%) increased by more than 2%.
The main votes of confidence allowed to increase the actions of some exceptional actions. Both World Paramount (PARA 13.92%) and Advanced micro-systems (AMD 8.61%) rose on Tuesday, and below we will examine the factors that caused these upward movements.
Paramount gets Buffett’s seal of approval
Paramount Global stock soared nearly 14% on Tuesday afternoon. The media giant was among the stocks that Warren Buffett Berkshire Hathaway (BRK.A 1.45%) (BRK.B 1.54%) added to its portfolio during the first quarter.
Paramount was also among the largest purchases made by Berkshire Hathaway during the quarter. The latest disclosure report filed with the U.S. Securities and Exchange Commission found that the conglomerate purchased nearly 69 million Paramount shares, establishing a position equal to about 11% of outstanding shares.
Like many of Buffett’s favorite investments, Paramount stocks currently enjoy extremely attractive valuations. Even though analysts expect Paramount’s earnings to be lower in 2022 than they were in 2021, the stock is trading at about 12 times its trailing net earnings. Additionally, some expect that despite growing competition in streaming services, Paramount’s ability to continue to generate compelling new content should give it an edge over some other streaming companies.
Supreme shareholders have long been stuck in a lull. Now, however, there’s more reason to believe that the worst of times for the media company may finally be behind it.
AMD looks chippy
Meanwhile, AMD shares rose nearly 8.5% on Tuesday afternoon. The semiconductor maker has received favorable comments from prominent stock analysts, boosting shareholder sentiment about the company’s prospects.
Piper Sandler analysts raised their rating on AMD stock from neutral to overweight, and boosted their target price sharply from $98 per share to $140 per share. Piper Sandler previously expected a softer PC market as the effects of the pandemic began to slow would weigh on AMD, but analysts admitted the chipmaker’s long-term outlook still looked strong. . Additionally, with the acquisition of Xilinx now complete, AMD has even more room for growth.
Indeed, this decision corresponds to the good news from AMD recently. The chipmaker’s first-quarter financial results released in early May included substantial organic sales gains that received an additional boost from the acquisition of Xilinx. In particular, demand for cloud computing has helped boost enterprise sales, and the company has raised its outlook for the rest of the year.
Many investors thought semiconductor strength might have been artificially inflated at the start of the pandemic. However, demand remained strong, helping to keep AMD’s business in good shape.