TSP Weekly Tech Stock Update—July 20, 2024
This Week: CrowdStrike Crash fallout, M&A software chatter heats up, AMD stock tumbles, NVDA dips, 2 new DDOG bulls, Morgan Stanley likes TEAM, Broadcom's AI potential, GOOGL earnings preview & more.
Hello from Rob…
—M&A Watch—Two of our TSP Small-Cap Portfolio holdings are potentially in play: GitLab (GTLB) and Smartsheet (SMAR). Details inside this issue. Also, we just closed out our profitable HashiCorp (HCP) position in the TSP Small-Cap Portfolio, as the company is set to be acquired by IBM.
—Advanced Micro Devices (AMD, $151.58) shares have fallen seven sessions in a row. For the week, the stock tumbled 16.5%. On the price chart, AMD closed below its 200-day moving average—now at $152.53—for the first time since the start of November.
The positive narrative on AMD has shifted sharply since the company earlier this month announced the acquisition of Silo AI, the largest private AI lab in Europe, in an all-cash deal valued at ~$665 million. On the day the transaction was announced, AMD stock peaked at $187.28, with the recent downward streak starting the next session.
Based in Helsinki, Silo AI specializes in end-to-end AI-driven solutions that help customers integrate AI quickly and easily into their products, services and operations. Silo AI also creates open source multilingual LLMs, such as Poro and Viking, on AMD platforms in addition to its SiloGen model platform. Silo AI CEO and co-founder Peter Sarlin will continue to lead the team as part of AMD’s AI unit.
*Inside This Issue: Gaming Out Competitive Shifts In Cybersecurity
—Paid subscribers will receive the August 2024 PDF of Tech-Stock Prospector (TSP #270) via email on Tuesday, August 13.
—Paid subscribers have access to the TSP Market Overview and TSP Portfolio Updates sections inside this issue.