Technology title in focus: Opportunities and challenges for AMD and Adobe

Meta could position itself as a balanced combination of growth and value orientation by 2025 and possibly surpass both Alphabet and Amazon in value. In the semiconductor segment, Advanced Micro Devices (AMD) experienced remarkable growth of 128% in 2023, making it one of the best-performing securities in the S&P 500. However, 2024 was marked by a correction and a decline of over 15% to date, despite an impressive rise of over 23% in the technology sector during the same period. Particularly noteworthy is the upswing observed in Nvidia and Broadcom. AMD's weaker performance can be attributed to delayed returns from investments in the field of artificial intelligence. Although significant funds are being directed toward research and development, the company's revenue has remained constant. New graphics processors, expected to hit the market by 2025 and potentially rival Nvidia, offer hope. Despite current weaknesses in the stock market and a high valuation, AMD could shine through robust growth in the future, provided the AI investment climate does not deteriorate. Similar to AMD, Adobe also started 2023 strongly but had to face a decline of over 25% in 2024. Adobe consistently presents solid margins and stable growth but lacks a clear plan for monetizing new AI tools, which raises uncertainties regarding future business development. Pressure on Adobe could persist unless convincing progress is made in its AI strategy. However, the prospects are not bad, with an attractive future price-to-earnings ratio of 21.9. For investors not deterred by volatile markets, both AMD and Adobe could present interesting opportunities.