According to Scott Nations, president of Nations Indexes, investors should consider taking a bullish stance on Advanced Micro Devices (AMD) following a series of positive headlines surrounding the stock. Appearing on CNBC’s “Power Lunch” on Wednesday, Nations also discussed two of the day’s biggest stock stories and shared whether investors should consider buying or selling those names.
Advanced Micro Devices
Shares of the AI chipmaker jumped more than 4% on Wednesday after the company announced that its board had approved a $6 billion share repurchase program.
Nations rated AMD a “buy,” pointing out that former President Donald Trump is reportedly planning to roll back restrictions on U.S. chip exports—something he said would be “positive for the entire sector.” He also called AMD the “second-best name” in the space, citing the company’s recent deal with Saudi firm Humain to help build out AI infrastructure, alongside Nvidia.
“If you’re looking to invest in AI, this is a chance to buy at a 35% discount from its 52-week high,” Nations said. While AMD has rallied nearly 25% over the past month, it’s still down more than 2% year-to-date.
AbbVie
Biotech giant AbbVie saw its stock fall over 5% during Wednesday’s session.
Citi downgraded the stock from Buy to Neutral and lowered its price target by $5 to $205 per share, still implying over 15% upside. Analyst Geoff Meacham noted that despite AbbVie’s track record of “consistent beats and raised guidance,” the company’s late-stage pipeline appears weak relative to peers.
“Fundamentals are solid right now,” Meacham wrote in a note to clients, “but as investors increasingly focus on pipeline strength, the impact of quarterly surprises could begin to fade.”
Nations disagreed strongly with that take, calling the downgrade “truly foolish” and reiterating his “buy” rating on AbbVie. “Pipeline matters for every pharma company, but AbbVie keeps beating earnings expectations, raising dividends, and offers a solid 3.5% yield. It’s in a good space,” he said. The stock is down 8% over the past three months.
Tesla
Tesla shares climbed 4% on Wednesday after Reuters, citing sources familiar with the matter, reported that the EV maker will begin shipping components for its Cybercab and Semi truck from China to the U.S. later this month. The report came after the U.S. and China agreed earlier this week to temporarily suspend certain tariffs for 90 days.
The development comes as Tesla grapples with declining sales in China and intensifying competition from local automakers. “I see Tesla as a hold right now,” Nations said. “It’s good that they’re resuming imports from China, but don’t forget: there are still some hefty tariffs on Chinese goods. In about 85 days, those could jump again—maybe even triple.”
Tesla shares surged nearly 26% last week but remain down about 14% during that same period, leaving the stock still in negative territory for the year.
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