Low-Beta ETFs Gain Attention as JPMorgan Highlights Overcrowded AI Investments
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 18 2025
0mins
Source: Benzinga
Market Volatility and ETF Relevance: As the U.S. stock market experiences turbulence, low volatility ETFs are gaining attention as a strategy to mitigate risk, particularly in light of extreme crowding in speculative stocks.
JPMorgan's Stock Recommendations: JPMorgan has identified several stocks, including Broadcom and AMD, that may face significant reversals, suggesting a shift towards low-volatility, cash-producing stocks for investors.
Characteristics of Low-Volatility ETFs: Funds like the Invesco S&P 500 Low Volatility ETF and iShares MSCI USA Min Vol Factor ETF focus on stocks with lower historical price variability, favoring sectors such as healthcare and consumer staples.
Investor Selectivity in AI Stocks: The trend towards low-volatility ETFs does not indicate a complete withdrawal from AI investments but reflects a more selective approach among investors regarding which AI stocks to support.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy AMD?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on AMD
Wall Street analysts forecast AMD stock price to fall
33 Analyst Rating
25 Buy
8 Hold
0 Sell
Strong Buy
Current: 552.050
Low
210.00
Averages
289.13
High
377.00
Current: 552.050
Low
210.00
Averages
289.13
High
377.00
About AMD
Advanced Micro Devices, Inc. is a global semiconductor company. The Company is focused on high-performance computing and artificial intelligence (AI). Its segments include Data Center, Client and Gaming, and Embedded. Data Center segment includes AI accelerators, microprocessors (CPUs) for servers, graphics processing units (GPUs), accelerated processing units (APUs), data processing units (DPUs), Field Programmable Gate Arrays (FPGAs), and Adaptive system-on-Chip (SoC) products for data centers. Client and Gaming segment includes CPUs, APUs, chipsets for desktops and notebooks, discrete GPUs, and semi-custom SoC products and development services. Embedded segment includes embedded CPUs, APUs, FPGAs, system on modules (SOMs), and Adaptive SoC products. It markets and sells its products under the AMD trademark. Its products include AMD EPYC, AMD Ryzen, AMD Ryzen PRO, Virtex UltraScale+, among others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Logic Chips and Storage Demand in the AI Revolution
- Significant Revenue Growth: Nvidia's revenue surpassed $215 billion last year, showcasing its dominance in the AI logic chip market and attracting numerous enterprise clients, which propelled its stock price up over 350% in the past three years.
- Surge in Storage Demand: Sandisk, Micron, and Western Digital achieved revenue growth of 640%, 650%, and 45% respectively in the first half of 2023, indicating a rapid rise in demand for memory and storage solutions driven by AI applications, making them new market favorites.
- Impact of Inference Computing: Western Digital's CEO highlighted that inference is expected to account for two-thirds of AI compute, increasing data generation needs that will further drive demand for storage solutions, ensuring ongoing growth potential for related companies.
- Long-term Investment Value: While storage companies have recently outperformed, GPU designers like Nvidia will still play a crucial role in the future of AI, making reasonably valued companies great long-term investment choices.
See More
Emerging Winners in AI Chip Market
- Significant Revenue Growth: Nvidia's revenue surpassed $215 billion in the past year, highlighting its dominant position in the AI chip market as numerous AI companies rushed to acquire its GPUs, which significantly boosted the company's stock performance.
- Surge in Storage Demand: Sandisk, Micron, and Western Digital achieved revenue growth of 640%, 650%, and 45% respectively in the first half of 2023, indicating a rapid increase in demand for memory and storage driven by AI applications, which may continue to enhance their market performance.
- Rise of Inference Computing: Western Digital's CEO noted that inference is expected to account for two-thirds of all AI compute, a trend that will further increase data storage needs and drive ongoing demand for products from related companies.
- Long-Term Investment Potential: While memory and storage companies have shown strong short-term performance, GPU designers will still play a crucial role in the future phases of AI development, making reasonably valued companies attractive long-term investment options.
See More
Semiconductor Stocks Retreat as Investors Book Profits
- Market Pullback: Following a red-hot rally in the semiconductor sector, investors are booking profits, with Intel's stock dropping 9.7% on Tuesday, marking the largest decline in the S&P 500 index, indicating a shift in market sentiment.
- Strong Samsung Results but Stock Decline: Despite Samsung Electronics reporting a staggering 19-fold increase in expected second-quarter operating profit to 89.4 trillion won ($58.44 billion) and a 129% revenue increase to 171 trillion won, its shares fell nearly 7% in Seoul, impacting SK Hynix and the broader Kospi index.
- Broad Chip Stock Decline: In the U.S., Intel and AMD saw their stocks drop 9.7% and 6.5%, respectively, while Western Digital and SanDisk each fell over 7%, reflecting investor concerns over the AI trade losing momentum and potential broader downturns in the market.
- Analyst Insights: Despite the pullback, Daniel Newman, CEO of Futurum Group, asserts that the AI trade remains intact with demand significantly outpacing supply, suggesting that profit-taking after parabolic moves is a healthy market behavior.
See More
Semiconductor Stocks Retreat as Investors Take Profits
- Intel Stock Plunge: Intel's stock dropped 9.7% on Tuesday, marking its steepest decline in a month and making it the biggest loser in the S&P 500, indicating that investors are booking profits after a strong rally in the semiconductor sector, which may impact the company's short-term stock performance.
- Samsung's Strong Earnings but Stock Decline: Despite Samsung Electronics reporting a staggering 19-fold increase in expected second-quarter operating profit to 89.4 trillion won ($58.44 billion) and a 129% revenue increase to 171 trillion won, its shares fell nearly 7%, reflecting market concerns over elevated valuations.
- Broad Chip Stock Retreat: In the U.S. market, AMD shares fell 6.5%, while Western Digital and SanDisk dropped over 7% each, and Micron declined 4.7%, suggesting that investor confidence in the AI trade is waning, potentially signaling a broader market pullback.
- Divergent Market Sentiment: While retail investors remain bullish on the iShares Semiconductor ETF (SOXX), sentiment towards Intel and SanDisk is neutral, and bearish for AMD and Western Digital, highlighting differing views on future semiconductor demand.
See More
Samsung and SK Hynix Shares Rebound After Selloff
- Share Rebound: After early losses, Samsung Electronics' shares rose to 290,000 won, up 1.4%, while SK Hynix climbed 5.8%, indicating investors are buying the dip amid concerns over the sustainability of the AI chip boom.
- Market Expectations: Despite a broad decline in U.S. semiconductor stocks, analysts maintain strong earnings expectations for chipmakers, with memory chip supply anticipated to remain tight through Q3, supporting investor sentiment for bargain buying.
- Target Price Adjustment: Kiwoom Securities analyst cut Samsung's target price by about 9% to 390,000 won, citing rising component prices leading to increased PC and smartphone costs, making customers more cautious about additional memory purchases.
- Price Trend Analysis: JPMorgan noted that memory pricing will remain a key earnings driver in the second half, despite growing customer resistance to higher costs, with NAND conventional chip pricing potentially outperforming expectations due to strong demand from U.S. hyperscalers.
See More
AMD Stock Drops Amid AI Competitor News
- Stock Volatility: AMD's stock fell nearly 7% on Tuesday due to investor reactions to reports that Chinese AI firm DeepSeek plans to develop its own specialized processors, leading to a significant market cap decline.
- Challenge from DeepSeek: DeepSeek is designing an AI chip for inference, and if successful, it would reduce reliance on AMD and Nvidia, potentially threatening their market shares in the AI hardware sector.
- Overblown Market Reaction: Although the development of DeepSeek's chip is complex and lengthy, the market's reaction to AMD's stock seems exaggerated, as even a successful product would face challenges like export controls.
- Industry Outlook: As AI technology evolves, the demand for inference-capable hardware will increase, and DeepSeek's efforts may encourage other developers to pursue proprietary routes, thereby diminishing the market position of third-party suppliers.
See More
Logic Chips and Storage Demand in the AI Revolution
- Significant Revenue Growth: Nvidia's revenue surpassed $215 billion last year, showcasing its dominance in the AI logic chip market and attracting numerous enterprise clients, which propelled its stock price up over 350% in the past three years.
- Surge in Storage Demand: Sandisk, Micron, and Western Digital achieved revenue growth of 640%, 650%, and 45% respectively in the first half of 2023, indicating a rapid rise in demand for memory and storage solutions driven by AI applications, making them new market favorites.
- Impact of Inference Computing: Western Digital's CEO highlighted that inference is expected to account for two-thirds of AI compute, increasing data generation needs that will further drive demand for storage solutions, ensuring ongoing growth potential for related companies.
- Long-term Investment Value: While storage companies have recently outperformed, GPU designers like Nvidia will still play a crucial role in the future of AI, making reasonably valued companies great long-term investment choices.
See More
Emerging Winners in AI Chip Market
- Significant Revenue Growth: Nvidia's revenue surpassed $215 billion in the past year, highlighting its dominant position in the AI chip market as numerous AI companies rushed to acquire its GPUs, which significantly boosted the company's stock performance.
- Surge in Storage Demand: Sandisk, Micron, and Western Digital achieved revenue growth of 640%, 650%, and 45% respectively in the first half of 2023, indicating a rapid increase in demand for memory and storage driven by AI applications, which may continue to enhance their market performance.
- Rise of Inference Computing: Western Digital's CEO noted that inference is expected to account for two-thirds of all AI compute, a trend that will further increase data storage needs and drive ongoing demand for products from related companies.
- Long-Term Investment Potential: While memory and storage companies have shown strong short-term performance, GPU designers will still play a crucial role in the future phases of AI development, making reasonably valued companies attractive long-term investment options.
See More
Semiconductor Stocks Retreat as Investors Book Profits
- Market Pullback: Following a red-hot rally in the semiconductor sector, investors are booking profits, with Intel's stock dropping 9.7% on Tuesday, marking the largest decline in the S&P 500 index, indicating a shift in market sentiment.
- Strong Samsung Results but Stock Decline: Despite Samsung Electronics reporting a staggering 19-fold increase in expected second-quarter operating profit to 89.4 trillion won ($58.44 billion) and a 129% revenue increase to 171 trillion won, its shares fell nearly 7% in Seoul, impacting SK Hynix and the broader Kospi index.
- Broad Chip Stock Decline: In the U.S., Intel and AMD saw their stocks drop 9.7% and 6.5%, respectively, while Western Digital and SanDisk each fell over 7%, reflecting investor concerns over the AI trade losing momentum and potential broader downturns in the market.
- Analyst Insights: Despite the pullback, Daniel Newman, CEO of Futurum Group, asserts that the AI trade remains intact with demand significantly outpacing supply, suggesting that profit-taking after parabolic moves is a healthy market behavior.
See More
Semiconductor Stocks Retreat as Investors Take Profits
- Intel Stock Plunge: Intel's stock dropped 9.7% on Tuesday, marking its steepest decline in a month and making it the biggest loser in the S&P 500, indicating that investors are booking profits after a strong rally in the semiconductor sector, which may impact the company's short-term stock performance.
- Samsung's Strong Earnings but Stock Decline: Despite Samsung Electronics reporting a staggering 19-fold increase in expected second-quarter operating profit to 89.4 trillion won ($58.44 billion) and a 129% revenue increase to 171 trillion won, its shares fell nearly 7%, reflecting market concerns over elevated valuations.
- Broad Chip Stock Retreat: In the U.S. market, AMD shares fell 6.5%, while Western Digital and SanDisk dropped over 7% each, and Micron declined 4.7%, suggesting that investor confidence in the AI trade is waning, potentially signaling a broader market pullback.
- Divergent Market Sentiment: While retail investors remain bullish on the iShares Semiconductor ETF (SOXX), sentiment towards Intel and SanDisk is neutral, and bearish for AMD and Western Digital, highlighting differing views on future semiconductor demand.
See More
Samsung and SK Hynix Shares Rebound After Selloff
- Share Rebound: After early losses, Samsung Electronics' shares rose to 290,000 won, up 1.4%, while SK Hynix climbed 5.8%, indicating investors are buying the dip amid concerns over the sustainability of the AI chip boom.
- Market Expectations: Despite a broad decline in U.S. semiconductor stocks, analysts maintain strong earnings expectations for chipmakers, with memory chip supply anticipated to remain tight through Q3, supporting investor sentiment for bargain buying.
- Target Price Adjustment: Kiwoom Securities analyst cut Samsung's target price by about 9% to 390,000 won, citing rising component prices leading to increased PC and smartphone costs, making customers more cautious about additional memory purchases.
- Price Trend Analysis: JPMorgan noted that memory pricing will remain a key earnings driver in the second half, despite growing customer resistance to higher costs, with NAND conventional chip pricing potentially outperforming expectations due to strong demand from U.S. hyperscalers.
See More
AMD Stock Drops Amid AI Competitor News
- Stock Volatility: AMD's stock fell nearly 7% on Tuesday due to investor reactions to reports that Chinese AI firm DeepSeek plans to develop its own specialized processors, leading to a significant market cap decline.
- Challenge from DeepSeek: DeepSeek is designing an AI chip for inference, and if successful, it would reduce reliance on AMD and Nvidia, potentially threatening their market shares in the AI hardware sector.
- Overblown Market Reaction: Although the development of DeepSeek's chip is complex and lengthy, the market's reaction to AMD's stock seems exaggerated, as even a successful product would face challenges like export controls.
- Industry Outlook: As AI technology evolves, the demand for inference-capable hardware will increase, and DeepSeek's efforts may encourage other developers to pursue proprietary routes, thereby diminishing the market position of third-party suppliers.
See More
