Following the 50 bps rate cut on September 18th, the Nasdaq Composite (IXIC) is up 1.47%. Let's explore how this impacts the stocks of Amazon, AMD, and Tesla.
Amazon's Growth After Rate Cuts
Amazon (NASDAQ: AMZN) is up 8.21% over the month, with a market cap of $2.013 trillion. In Q2 2024, the company reported $148 billion in net sales, a 10% increase YoY. Generative AI applications and AWS are likely to foster further growth. AWS sales rose by 19% to $26.3 billion, and advertising services increased by 20% to $12.7 billion YoY. The average AMZN price target is $223.25, which is a 16% increase from the current $192.45 per share.
Advanced Micro Devices' Prospects
AMD (NASDAQ: AMD) stock is up 1.2% last month. Despite low sales of the latest Ryzen 9000 series, the more competitively priced X3D series saw increased demand. AMD reached a record market share of 23.9% in Q1. AMD is also competing with Nvidia in the AI market. Data center revenues are expected to grow to $400 billion by 2027. The average AMD price target is $190.25, giving a potential upside of 20% from the current $158.62.
Tesla's Recovery and Future Growth
Tesla (NASDAQ: TSLA) is up 1.73% year-to-date, with a 15% increase over the last 30 days. The current TSLA price is $253. The Robotaxi Event on October 10th could be a transformative milestone for the company. The average TSLA price target is $210.56, but the impacts of the event are unpredictable.
Tech companies like Amazon, AMD, and Tesla may continue to grow following the rate cuts. Each of them has unique factors supporting their development.
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