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☕ AMD Flexes, Wall Street Flinches: Who's Ready for the Real Show?

Feb 05, 2025

Good morning! 👋

The headlines are telling you that the S&P 500 and Nasdaq are falling because Alphabet and AMD are leading the rank and file lower.

Half right.

What’s really happening is that Wall Street’s traders are playing games with both companies and all the indices and computers must keep up… so they’re playing catch up. Or, down as the case may be.

Either way, it’s an opportunity for those in the know.

World class companies get beaten down more often than you’d think for reasons that have nothing to do whatsoever with the business case for owning ‘em. So, not surprisingly, it stands to reason that you’ve often got one heckuvan opportunity when you can identify ‘em.

Here’s my playbook.

1 – Palantir isn’t the only game in town; what else I’m buying

The venerable Charles Payne kindly asked me back to his show yesterday for a discussion about Palantir and what else I'm buying. The answer may surprise you. (Watch)

Keith’s Investing Tip: Big runners – like Palantir – are awesome but they are not the only game in town which is why having a plan in place that will deliberately make you focus on other areas can be really great for your portfolio.

2 – Alphabet biffs it

No surprise here – I’ve been telling you to avoid the dang thing for a while.

The company missed revenue and boosted AI investment. (Read)

If this were – and I can’t believe I am saying this – Meta and the company were talking AI investment, I’d be tempted to buy. 🤦‍

No thanks.

Putskies.

Make no mistake about it, Google - aka Alphabet - is fighting for its life.

3 – AMD’s getting trashed, who’s ready for the real show?

This is big traders playing games, pure and simple.

AMD beat estimates and AI spending is accelerating. (Read)

Record Revenue: $25.8 billion (+14% YoY).
Data Center Growth: Up 69% YoY, driven by strong adoption of Instinct AI accelerators and EPYC processors.
Client Segment Performance: Revenue of $2.3 billion (+58% YoY).
Gross Margin: 51%, an 8.5% YoY increase.

Plus, the company plans to launch the MI350 GPU later this year, which rivals Nvidia’s latest Blackwell chips.

Makes sense.

El Zucko made it clear recently that he thinks companies with the best data center infrastructure will have an advantage (AMD’s wheelhouse).

So why are AMD shares down?

Two reasons.

First, the EU’s antitrust probe decision on AMD’s ZT systems deal – a $4.9B undertaking – is due on March 12th. You’d think the EU would figure out how to compete but nooooooo, their decision parameter seems solely focused on holding down the best rather than fostering conditions conducive to the EU fielding a home team.

And second, Citi cut its price target from $175 to $110 – a little too convenient for me.

This is classic high finance and short-term thinking at its best.

Selling doesn’t happen in a vacuum so I can almost guarantee you who’s buying… everyone on Wall Street that the media is making you think is selling.

Keep your eye on the ball!

The global AI market is projected to grow from $150 billion in 2023 to $1.8 trillion by 2030, with chips as the backbone of AI training and deployment. Advanced GPUs and TPUs (like those from Nvidia and AMD) are essential for powering machine learning, natural language processing, and autonomous systems.

Always do what Wall Street does, not what it says. 🛒

Hopefully, you understand the difference. If not, you know where to find me. And, frankly, I’d love to help you up your game if that’s of interest. If not, good on ya.

4 – Mickey didn’t get the memo

Disney lost streaming customers during the quarter and warns more are going to head for the exits soon. (Read)

People are betting on a turnaround at the House of Mouse, but I think that’s premature.

The bigger concern to my way of thinking remains a near complete loss of trust from long-term customers who now and increasingly no longer give a rip about the company's once unassailable brand portfolio.

Streaming… a commodity.

Theme parks… overpriced as heck.

The brand… a shadow of what it once was, especially as fewer and fewer kids enter the world.

Avoid, short or simply bin it.

5 – Teledoc: Apple’s at its most dangerous when quiet

There’s news out this morning that Teladoc is buying Catapult Health for $65M. (Read)

Awesome.

But I think the real game is when Apple buys Teladoc or launches a viable competitive product set of its own.

Outlandish?

Not as much as you’d think.

The race is on to dominate preventative and virtual health care because both the government and health insurance companies have failed… and badly at that.

Apple began what I called the “pivot” into health care in 2014 when I broke that story to investors after spotting loads of insurance company cars in Cupertino, taking a swing through the company’s patents, and reading between the lines with CEO Tim Cook.

Makes sense.

Here are a few key parallels between Teladoc’s latest move & Apple’s Healthcare Strategy:

1. Preventative Care & Early Detection

Teladoc + Catapult is clearly aimed at expanding at-home wellness exams to catch health conditions early before they escalate.

Apple’s been doing the same thing for years and for years I’ve been telling about it… leveraging Apple Watch, AI-powered health insights, and non-invasive glucose monitoring to provide continuous health tracking and potentially predictive diagnostics. Oh, and the AirPods as hearing aids.

2. Shifting Toward Integrated Care

Teladoc wants to bring preventative screenings, telehealth consultations, and chronic condition monitoring under one ecosystem.

Apple’s goal is to move from fitness tracking into serious medical applications, with a closed-loop health ecosystem across iPhones, Apple Watches, and health sensors—a model that will rival traditional healthcare providers.

Doctors will love it; insurance companies will hate it.

3. AI & Data-Driven Personalization

Teladoc is using AI to enhance virtual consultations and diagnostics within its integrated care segment.

Apple is using AI to come at this from a preventative coaching and monitoring angle using data to recommend proactive health interventions.

4. Consumer-Centric Healthcare

Both companies are betting that the future of healthcare will be consumer-driven—putting diagnostics and treatment guidance directly in people’s hands rather than relying solely on traditional healthcare systems.

I already own gobs of one but may have to think about complimenting it with the other. And shorting the you know what outta traditional pharmacy companies which are all but dead money at this point while I’m at it.

Hmmm.🧐