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Why 'AI Laggard' Stocks Intel and AMD Could Get a Boost in the Second Half

Why 'AI Laggard' Stocks Intel and AMD Could Get a Boost in the Second Half
Mellius Research analysts said that the first half's "AI laggards" could rise in the final six months of the year, highlighting Intel and AMD, among others.

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Intel and Advanced Micro Devices (AMD) are expected to see a boost in the second half of 2024, according to Melius Research. The companies, which were considered "AI Laggards" in the first six months of the year, could benefit from a "catch-up" trade, similar to a pattern observed in 2023. The analysts noted that "underdogs" underperformed in the first half of 2023 and then gained in the second half, while some "AI winners" experienced the opposite effect. Intel and AMD could benefit from Microsoft's Copilot+ PCs, while Apple and IBM are also expected to see gains from various factors. Intel shares were up more than 5% in Monday afternoon trading, narrowing their more than 30% year-to-date loss, while AMD shares were up 3%, with the stock gaining 20% since the start of 2024. The second half of 2024 could bring a similar pattern, according to Melius analysts.

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