Advanced Micro Devices designs a variety of digital semiconductors for markets such as PCs, gaming consoles, data centers, industrial, and automotive applications. AMD’s traditional strength was in central processing units and graphics processing units used in PCs and data centers. Additionally, the firm supplies the chips found in prominent game consoles such as the Sony PlayStation and Microsoft Xbox. In 2022, the firm acquired field-programmable gate array leader Xilinx to diversify its business and augment its opportunities in key end markets such as data center and automotive.

The U.S. presidential election is tomorrow. Last week, in Part 1 of this series, we made a case that the state of the economy is a bigger driver for Wall Street than who wins and takes over the White House. This week, we add some color to the presidential cycle over a typical four-year term and examine how that cycle affects the market. Historical data suggests that Year 1 is a honeymoon year, with a feeling of optimism that usually is good for stocks. In Year 1, the S&P 500 has been up 14% on average for more than 50 years, going back to 1980. Year 2 is still an up year for stocks, but only by about 5% as some of the challenges of the office surface and midterm elections cause distraction and uncertainty. Year 3 has proven to be the strongest, with stocks up about 15%. As sitting presidents put their candidate hat back on, there is increased spending and often tax breaks. Year 4 dips again, with stocks rising a smaller 4% due to uncertainty about the pending election. This week, in Part 2 of our review of the election and sectors, we look at Energy and Healthcare to see how they might perform under either candidate. While our analysis does look at specific policies, it essentially boils down to the broad approach of the candidates.

Meta is the largest social media company in the world, boasting close to 4 billion monthly active users worldwide. The firm’s “Family of Apps,” its core business, consists of Facebook, Instagram, Messenger, and WhatsApp. End users can leverage these applications for a variety of different purposes, from keeping in touch with friends to following celebrities and running digital businesses for free. Meta packages customer data, gleaned from its application ecosystem and sells ads to digital advertisers. While the firm has been investing heavily in its Reality Labs business, it remains a very small part of Meta’s overall sales.

Tesla is a vertically integrated battery electric vehicle automaker and developer of autonomous driving software. The company has multiple vehicles in its fleet, which include luxury and midsize sedans, crossover SUVs, a light truck, and a semi truck. Tesla also plans to begin selling more affordable vehicles, a sports car, and a robotaxi. Global deliveries in 2023 were a little over 1.8 million vehicles. The company sells batteries for stationary storage for residential and commercial properties including utilities and solar panels and solar roofs for energy generation. Tesla also owns a fast-charging network.