Strong Earnings From Advanced Micro Devices Should Lift SNPG

Advanced Micro Devices (NASDAQ: AMD) saw its stock rise on Wednesday after posting strong quarterly earnings the day before. The chipmaker beat analyst expectations for sales and profit while forecasting a 10% decline in year-over-year sales for the current quarter.

This is after chief rival Intel Corp. posted earnings that showed major declines in the company’s sales, profit, gross margin, and outlook for the quarter and the full year. Intel also said in a presentation that it expects to deal with “persistent economic headwinds” for at least the first half of the year.

Rosenblatt Securities’ Hans Mosesmann, one of 21 analysts to cut their price targets on Intel stock, is quoted in Reuters as saying: “No words can portray or explain the historic collapse of Intel.” Meanwhile, at least 11 analysts have lifted their ratings on AMD’s stock.

AMD’s data center business revenue grew 42% in the quarter, versus the 33% decline recorded at Intel’s data center and artificial intelligence unit for the same period. While the data center market has slowed in recent months due to lower spending from businesses concerned about a possible recession, AMD has managed to outpace Intel due to its faster and smaller chips.

“AMD can continue to beat Intel in the data center space due to its leading design,” Lucas Keh, semiconductors analyst at Third Bridge, told Reuters.

Investors looking to get exposure to AMD while also making their portfolios adhere to environmental, social, and governance standards may want to give the Xtrackers S&P 500 Growth ESG ETF (SNPG) a look.

SNPG seeks investment results that correspond generally to the performances, before fees and expenses, of the S&P 500 Growth ESG Index, a broad-based, market capitalization-weighted index that provides exposure to companies with high ESG performance relative to their sector peers, while maintaining a similar overall industry group weight as the index.

AMD had a weighting of 1.68% in the fund as of February 1.

SNPG is one of three ETFs DWS launched in November that provide exposure to U.S. equity investment styles with ESG-screened U.S. dividend-, growth-, and value-oriented equities. The other two funds are the Xtrackers S&P ESG Dividend Aristocrats ETF (SNPD) and the Xtrackers S&P ESG Value ETF (SNPV).

“DWS has continued to build out an ESG presence offering a sustainable alternative to popular S&P Dow Jones Index-based products,” said Todd Rosenbluth, head of research at VettaFi. “We have seen strong demand for SNPE, but now advisors can tilt toward growth, value, or dividends too.”

The fund uses ESG filtering in addition to its investment style focus and has an expense ratio of 0.15%.

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