Time to SELL These 3 Stocks or BUY MORE?

Hinzugefügt: 2026-05-12

[00:00:00]Today's video, in my opinion, is going to be one of the best I have put out, as it's going to answer a lot of questions you likely have right now on certain technology stocks during this chip craze we have been seeing. But it's also going to give you some action plan steps you can take. Today's video has it all. To start, the stock market has seen a huge V-shaped recovery, especially in the technology space, pinpointed down to chip stocks. We are talking about stocks rising over a 100% in a month. A month.

[00:00:28]And now investors are all asking the same question. Is it finally time to sell or should you actually be buying more? In this video, I'm going to be breaking down the stocks of AMD, Nvidia, and yes, believe it or not, Palunteer. I don't own Palunteer, but I've had a bunch of questions on them. But they are very different from the first two. In fact, that of AMD and Nvidia have had nice runs, and once darling Palanteer is actually red on the year. And for each one of them, I'm going to give you my honest view. sell, hold, or buy more.

[00:00:57]And best of all, I'm going to show you option plays for each of these names for you to consider. And if you're interested in learning more about options and how they can take your investing to the next level, my next 4-week option program titled the full stock options investor begins this Thursday, May 14th, at 7 p.m. All enrolles will gain access to the recordings, whether you can join the live portion or not. But in this course, I will be unveiling my exact blueprint of how I generate more than $10,000 per month in income just from options alone.

[00:01:28]We will be going through 10 plus different strategies to help you not only understand options on a new level, but to determine the strategy that fits your investor profile best. Check out the link, the first link in the description below and get enrolled quickly as spots are filling up. This is the most indepth options program I teach and I can't wait to see you there. With that being said, let's jump right into our video, beginning with stock number one, which is going to be Advanced Micro Devices or AMD. This one is interesting because the market constantly compares them to Nvidia. And honestly, that comparison hurts AMD because investors look at Nvidia's dominance and assume, well, AMD is probably losing. Or they compare AMD's market cap to that of Nvidia and assume they are losing. But if you go through my video history dating back to the beginning of 2025, I have made countless videos talking about the upside of AMD, how AMD could double.

[00:02:21]But at the same time, I said they would double in 3 years. They just doubled since the start of April. And that is incredible. AMD shares are up nearly 350% the past 12 months alone and up 87% in the past 30 days. The stock currently has a market cap of $742 billion. The AI market is massive and for a while AMD continue to be overlooked. There's room for multiple winners as we are seeing chip stocks of all varieties go crazy.

[00:02:49]And AMD continues improving data center presence, its AI accelerator products, enterprise relationships, and CPU growth. Now, are they leading AI right now? No. But they also don't need to in order to fully beat Nvidia to succeed.

[00:03:04]That's the key. The market sometimes prices AMD like not number one. Well, that equates to failure. I disagree with that. For me, AMD, believe it or not, is still a buy. But let me explain. I'm talking about long-term investors.

[00:03:18]There's always profit taking after moves like this, so expect it. But if you want to be more conservative and try to see if you can get in at a lower price, well, then why not utilize an option strategy known as a cash secured put?

[00:03:30]Looking at this trade alert from my options community, you can see I recently sold the $350 put expiring on June 18th and I collected $565 per contract. This strategy allows me to get paid to wait to potentially get the opportunity to buy a stock at a lower price. And if you're interested in joining my community and see these trade alerts, then join the stock investors edge. There's a link in the description below. So after the recent run, the PE of AMD has jumped to 62 times. But again, this is a stock growing earnings over 70% both in 2026 as well as 2027 as well, giving the stock a PEG ratio that still seems pretty cheap below one. Now, with that being said, AMD a great company and a great AI play with a lot of growth ahead of it. Now, let's move to the dominant AI play in Nvidia, stock ticker NVDA. This stock has become the center of the AI trade and for good reason. The company is dominating AI compute, data center GPUs, AI infrastructure spending, and they have built themselves an entire AI ecosystem.

[00:04:34]Demand is still enormous. The issue is not the business. The issue is expectations. A few months back, when shares of Nvidia were trading in the $160 range, I called Nvidia the easiest buy on the market. Now, I never want to claim things like that because there's plenty of risk involved with those types of comments, but it was obvious. And today we have shares Nvidia now trading above $215 per share, a more than 30% run since I made those comments in that video. And the company has a market cap of 5.2 trillion, retaking Alphabet as the largest company by market cap in the US. Over the past 12 months, shares of Nvidia have climbed 88% and up 16% in the past month alone. After that run, investors are now asking themselves, should I sell my shares? No. But I also wouldn't be blindly chasing after these moves either because what has happened now is the stock has gone from criminally cheap to now trading at a much more reasonable valuation. Not overvalued by any means. In the 160s shares were trading at a market multiple around 21 times. Today they're still only around 26 times. I believe a 30x multiple is closer to fair value. So we still have plenty of upside. But that there is where most retail investors go wrong. they see a huge move in a stock and think, well, they probably have to sell because the stock is likely going to change direction very soon and it's probably overvalued now, right? But in reality, stocks that go up doesn't necessarily mean the stock is expensive.

[00:06:02]During the pandemic, investors missed out on massive gains from Nvidia because they sold a stock too early without understanding valuation. For me, this is more of a hold or buy on weakness play because fundamentally the company is still incredibly strong. So, instead of buying here, since I already have a sizable position in my portfolio, and since I like the company and would buy on weakness, how about again we utilize a cash secured put, I'm going to be looking to sell the 190 put. This will generate us around $270 in income per contract, which would obligate us to purchase shares if they were to fall below the 190 strike, which is a level I would love to buy. So, with that being said, we've gone through AMD and Nvidia.

[00:06:42]Two companies that have been phenomenal over the course of the past few years, but really over the course of the past month, those gains have been fantastic.

[00:06:51]Now, let's move on to stock number three, which is going to be Palunteer, stock ticker PLTR. And after watching my videos, for as long as some of you have, can you remember a time that I last spoke about Palunteer? It has been a long time. And I always have liked the company, even with how wonky the CEO may appear. The company has a clear lead in its space. The problem has always been the value. And when you mix value with the stock that's emotionally driven within the retail community, it can get really wild. This is probably the most emotionally driven stock on the list.

[00:07:23]And it's pretty easy. People either absolutely love Palunteer or they completely hate it. But here's my view.

[00:07:29]The business has improved materially.

[00:07:32]You're seeing stronger commercial growth. AI platform demand expanding profitability that's real. But the stock has also become extremely narrative driven. And when a stock becomes heavily narrative driven, expectations rise fast. Sentiment swings hard and valuation expands aggressively. That increases risk to the investor. Right now, shares of Palunteer traded a market cap of $330 billion. And over the past 12 months, shares are up 15%. But in 2026, shares are actually down 25%. And let me take a moment to thank today's video sponsor, which is the Mly Fool.

[00:08:07]The Mly Fool has a ton of great resources and products available for investors of all different levels. And right now, if you go to fool.com/mark, you could check out their 10 best stocks to buy right now. So, getting back to Palunteer, why are shares down so much and lagging the greater index in 2026?

[00:08:24]Well, for starters, all the stock has done the past five years is go up nearly 600%.

[00:08:30]But at the same time, they've gotten shuffled in with a software crowd that while it's off its lows, it has come under siege in 2026. So, where does Palunteer shares stand for me right now?

[00:08:41]Well, the thing I often preach inside my investing community is the fact that it's okay for some of these stocks to take a breather or even come down because that just means valuations are getting cheaper if behind the scenes the business continues to grow. Now, Palanteer is never mixed in with the cheap stocks list. But as an investor, you want to be focused on the business performance more so than the stock performance. This is how you find great deals. So, would I completely sell Palunteer here? No. Am I outright buying it? Also no. I still think it has plenty of upside, but it's also a stock I don't currently own in my portfolio as I would much rather utilize options with this name as the premiums are very juicy. So again, let's look out to the June 18th expiration date, aiming for that 120 strike to sell a cash secured put. That will warrant us around $245 in income per contract. And if the stock drops another roughly 15%, we would be buyers of this company entering our first position. So stepping back, we looked at three polarizing companies with big upside still. And I also gave you three potential option plays to consider for those that want to buy these stocks, but maybe just at lower prices. Nvidia, incredible business with an AI ecosystem. AMD still has room to grow within AI. Palunteer improving fundamentals, but sentiment hasn't been that great of late. Different setups, different risks, and that's the important lesson. Great companies and great stocks are not always the same thing at the same time. And in markets like this, the goal isn't blindly buying hype or panic selling through strength.

[00:10:18]It's understanding where expectations already are. And if you enjoyed this video and took value in any of it, show your appreciation by simply clicking that like button down below. Subscribe to the channel and don't forget to sign up for my full stack options investor beginning this Thursday at 7 p.m. We'll be going through four weeks to make you a real option investor. We'll see you there.