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Top Stock Picks for Week of November 22, 2021

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Advanced Micro Devices (AMD - Free Report) has strengthened its position in the semiconductor market on the back of its evolution as an enterprise-focus company from a pure-bred consumer-PC chip provider.Advanced Micro Devices is riding on robust performance from the Computing and Graphics, and Enterprise Embedded and Semi-Custom segments as reflected by the third-quarter 2021 results. It is benefiting from strong sales of its Ryzen and EPYC server processors, owing to increasing proliferation of AI and Machine Learning (ML) in industries like cloud, gaming and supercomputing domain. Growing clout of 7 nanometer products in the data center vertical, driven by work-from-home and online learning trends, is a key catalyst. AMD raised its 2021 guidance for revenues on the back of strong growth across all businesses. Further, the Xilinx acquisition is likely to boost data center business. Shares have outperformed the industry year to date. 

NVIDIA Corporation (NVDA - Free Report) is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit, or GPU. NVIDIA is benefiting from the coronavirus-induced work-from-home and learn-at-home wave. It is also benefiting from strong growth in GeForce desktop and notebook GPUs, which is boosting gaming revenues. Moreover, a surge in Hyperscale demand remains a tailwind for the company’s Data Center business. Expansion of NVIDIA GeForce NOW is expected to drive user base. Further, solid uptake of artificial intelligence-based smart cockpit infotainment solutions is a boon. Additionally, collaboration with Daimler-owned Mercedes-Benz is expected to further strengthen NVIDIA’s presence in the autonomous vehicles and other automotive electronics space. The stock has outperformed industry over the past year. NVIDIA boasts a sturdy cash-flow generating ability. The company’s accelerated revenue growth along with improving operating efficiency is bringing in higher cash flows. The higher cash flow generating ability lends NVIDIA flexibility to invest in the long-term growth prospects and return money to its shareholders.   


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