Stocks to Watch Today: AMD and UBER

AMD and Uber are in the spotlight today, with AMD’s acquisition plans and Uber facing regulatory challenges in Hong Kong.

Points

• AMD’s stock rises on acquisition news.
• Uber’s stock declines amid regulatory challenges in Hong Kong.
• AMD’s acquisition of Silo AI enhances its AI capabilities.
• Uber’s operations in Hong Kong face new regulations and penalties.

AMD: Boosting AI Capabilities with Strategic Acquisition

Advanced Micro Devices （AMD） saw a stock surge of 3.53%, reaching $183.35, following news of its planned acquisition of Silo AI, Europe’s largest private AI lab, for $665 million in cash. This strategic move, expected to close in the second half of 2024, aligns with AMD’s broader strategy to invest in AI companies. Over the past year, AMD has invested more than $125 million across a dozen AI firms.

Silo AI is known for its enterprise-focused AI solutions and open-source multilingual large language models. This acquisition is set to enhance AMD’s AI software capabilities significantly.

AMD now boasts a market cap of $286.25 billion, with a trailing P/E ratio of 256.67 and a forward P/E of 51.81. The company’s stock performance has been impressive, showing a year-to-date return of 24.37% and a five-year return of 453.03%.

UBER: Facing Regulatory Challenges in Hong Kong

In contrast, Uber Technologies Inc. saw a stock decline of 3.06%, down to $69.14, following news that Hong Kong plans to regulate ride-hailing services after a decade of unregulated operation. The new regulations will require licensing for platforms like Uber and introduce tougher penalties for non-compliance.

This development could significantly impact Uber’s operations in Hong Kong, where it currently has over 10,000 drivers but only 1,500 hire-car permits available.

Despite the regulatory challenges, Uber’s financial metrics remain robust, with a market cap of $144.37 billion and a year-to-date return of 12.22%. The company’s five-year return stands at 56.32%, and analysts maintain a strong buy recommendation with an average price target of $86.12.