Matt Frankel

If you have like a 10 bagger in your portfolio that you're going to sell to buy some of these IPOs, beware of the tax bill you're going to get.

My preferred approach in situations like this, when there's an IPO that I really like and would like to own, for me, a recent example is Klarna, would be to invest a very little bit in the beginning of new money, not selling, and gradually build a position over time.

Again, not personal advice, just what I do.

So think of some of the recent IPOs.

I mentioned Klarna.

Figma's another one.

Some of the other hyped IPOs from last year, StubHub was another one that I remember.

investors who like those companies would have been better off instead of rushing in during the IPO hype, waiting a little while, maybe buying a little bit at first and then incrementally adding over time.

And when the hype dies down, the market figures out what it actually wants to value these businesses at.

Investors in a lot of cases would have been better off.

And I don't have a crystal ball, but I believe there's a strong chance of that happening again, especially given the hype surrounding some of these IPOs.

Yeah, and it's not just the 20% gain yesterday.

AMD has tripled over the past year.

And yes, it has to do with AI spend.

That's really the lazy explanation for it, though.

So I'm going to go a little bit into depth with that.

So revenue, of course, grew significantly faster than analysts thought.

And the big driver was, as you say, the 57% growth in that data center segment, which is AI spend.

But the guidance was a big part of the reaction to the stock.

Second quarter revenue guidance came in much higher than expected and implied a surprising acceleration in growth.