...if people don't understand the meaning of 'front-running', they should look at this example of AMD.
...AMD beat expectations, still making good money and semiconductors will be even more important than ever in the new age of AI.
...Yet its stock has fallen 38% from its all time high. Why?
...The stock has FRONT-RUN ahead of its delivery, which means the stock price OVERSHOT due to over-exuberance that its earnings multiples now would need to mean revert.
....and this is happening to EV and lithium stocks, its stock price languishing is less to do with what the future holds for EVs and lithium, they can continue to grow but that does not mean EV and lithium stocks could return to their all time highs again. Simply because they have overshot, just like PLS trading at in excess of 41x PE multiple, LTR at 21x its projected 2025 earnings (assuming the project is completely de-risked).
BREAKING: AMD stock, $AMD, falls as much as 6% after reporting Q1 2024 earnings results. AMD beat expectations slightly with revenue of $5.5 billion and EPS of $0.62. Data center revenue was up a massive 80% year-over-year. The stock is now down ~38% from its recent all time high. Are chip stocks losing momentum?
