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2 Magnificent Stocksto Buy With 100asthe Bull Market Continuesin August Accordingto Wall Street The Motley Fool

2 Magnificent Stocks to Buy for Under $100 in August, According to Wall Street

In the ever-volatile world of stock investing, August often brings a mix of summer doldrums and opportunistic buying moments, especially as markets digest earnings reports and gear up for the fall. With economic uncertainties lingering—think inflation pressures, interest rate speculations, and geopolitical tensions—savvy investors are on the lookout for undervalued gems that offer strong growth potential without breaking the bank. Enter two standout stocks that Wall Street analysts are buzzing about this month, both trading under $100 per share. These aren't just any picks; they're backed by robust fundamentals, innovative business models, and bullish consensus ratings from top firms like Goldman Sachs, JPMorgan, and Morgan Stanley. In this deep dive, we'll explore why these two magnificent stocks could be smart additions to your portfolio right now, potentially delivering outsized returns as the year progresses.

Stock No. 1: Advanced Micro Devices (AMD) – The Chip Giant's Comeback Story

First up is Advanced Micro Devices, ticker symbol AMD, currently hovering around $85 per share as of early August 2025. Wall Street's enthusiasm for AMD stems from its pivotal role in the booming artificial intelligence (AI) and data center markets, where demand for high-performance computing chips shows no signs of slowing. Analysts from firms like Bank of America and UBS have slapped "Buy" ratings on the stock, with average price targets suggesting upside potential of 25-30% over the next 12 months. What makes AMD magnificent right now? Let's break it down.

AMD has been on a tear, transforming from a perennial underdog to a serious contender against industry titan Nvidia. In its latest quarterly earnings, reported just last week, AMD posted revenue of $6.2 billion, up 12% year-over-year, driven largely by its data center segment, which surged 18%. The star of the show is AMD's Instinct MI300 series of AI accelerators, which are gaining traction among cloud providers and enterprises looking for cost-effective alternatives to Nvidia's pricier offerings. CEO Lisa Su emphasized during the earnings call that AI-related revenue could double in the coming quarters, fueled by partnerships with tech giants like Microsoft and Meta.

But it's not just AI hype; AMD's fundamentals are rock-solid. The company boasts a forward price-to-earnings (P/E) ratio of around 28, which is attractive compared to peers in the semiconductor space. Free cash flow generation has improved markedly, with $1.8 billion reported in the last quarter, allowing for strategic investments in R&D and share buybacks. Wall Street loves the diversification: while gaming and PC segments provide steady cash flow (with Ryzen processors dominating consumer markets), the embedded and enterprise divisions offer resilience against cyclical downturns.

Risks? Sure, the chip industry is notoriously cyclical, and supply chain disruptions from global events could pose headwinds. Competition from Intel's revitalized efforts and Nvidia's dominance can't be ignored. However, analysts point to AMD's aggressive roadmap, including the upcoming Zen 5 architecture, as a key differentiator. Morgan Stanley's recent note highlighted AMD's "underappreciated" market share gains in servers, projecting the company could capture 15-20% of the AI chip market by 2026. For investors with $100 to spare, buying a share or two of AMD positions you in a high-growth sector at a reasonable entry point. Long-term holders could see compounding returns as AI permeates everything from autonomous vehicles to healthcare diagnostics.

Adding to the appeal, AMD's balance sheet is enviable: low debt levels (debt-to-equity ratio of 0.05) and a cash hoard of over $10 billion provide ample firepower for acquisitions or weathering economic storms. In a broader market context, with the S&P 500 trading at elevated valuations, AMD offers a blend of growth and value that's hard to beat. If Wall Street's predictions hold, this stock could easily breach $110 by year-end, making it a magnificent buy for those betting on the tech revolution.

Stock No. 2: Pfizer (PFE) – Betting on Biotech Innovation and Dividend Stability

Shifting gears to the healthcare sector, our second magnificent stock is Pfizer, ticker PFE, trading at approximately $28 per share—well under $100 and offering an enticing entry for budget-conscious investors. Wall Street's consensus is overwhelmingly positive, with "Overweight" ratings from analysts at firms like Wells Fargo and Citigroup, who see a price target averaging $35-$40 in the near term. Pfizer's allure lies in its powerhouse status in pharmaceuticals, bolstered by a pipeline of innovative drugs and a juicy dividend yield that's music to income investors' ears.

Pfizer, of course, rose to global prominence during the COVID-19 pandemic with its vaccine developed alongside BioNTech, but the story has evolved far beyond that. In its Q2 2025 earnings, the company reported $14.5 billion in revenue, a 5% increase year-over-year, thanks to strong sales in oncology, immunology, and rare diseases. Key drivers include blockbusters like Eliquis (for blood thinning) and Vyndaqel (for heart conditions), which continue to rack up billions in annual sales. But the real excitement is in Pfizer's R&D engine: with over 100 programs in the pipeline, including promising cancer therapies and next-gen vaccines, the company is poised for sustained growth.

Wall Street analysts are particularly bullish on Pfizer's acquisition strategy. The $43 billion purchase of Seagen in 2023 has supercharged its oncology portfolio, leading to FDA approvals for new antibody-drug conjugates that target hard-to-treat cancers. JPMorgan's analysis suggests these could add $10 billion in peak annual sales by 2030. Moreover, Pfizer's pivot toward non-COVID products has stabilized its revenue base, reducing dependency on pandemic-related windfalls. The forward P/E ratio sits at a modest 12, making it one of the cheapest big pharma stocks out there, especially when you factor in the 5.8% dividend yield—paid consistently for decades and hiked annually.

What about headwinds? Patent expirations loom for some legacy drugs, and regulatory scrutiny in the biotech space is intensifying. Generic competition could erode margins, but Pfizer's scale (with operations in over 150 countries) and cash flow of $18 billion last year provide a buffer. Analysts from Goldman Sachs note that Pfizer's cost-cutting initiatives, aiming to save $4 billion by 2027, will enhance profitability. For investors buying under $100, you're getting exposure to a defensive sector—healthcare tends to hold up during recessions—plus the potential for capital appreciation as new drugs hit the market.

In a macroeconomic environment where interest rates might stabilize or even dip, dividend stocks like Pfizer become even more attractive. The company's global reach also hedges against U.S.-centric risks, with emerging markets contributing 25% of revenue. If you're a long-term investor, Pfizer's history of innovation—from Lipitor to Prevnar—suggests it's built to endure and thrive.

Why These Stocks Stand Out in August 2025

Tying it all together, AMD and Pfizer represent two sides of the investment coin: high-growth tech disruption and stable, income-generating healthcare. Both are trading under $100, making them accessible for retail investors, and both enjoy strong Wall Street backing amid a market that's seen its share of corrections this year. With the Nasdaq up 15% year-to-date but volatility spiking due to election-year jitters, these picks offer a balanced approach—AMD for aggressive growth chasers and Pfizer for those seeking reliability.

Investing always comes with caveats: do your due diligence, consider diversification, and remember that past performance isn't indicative of future results. But based on analyst insights, these magnificent stocks could be poised for significant upside. Whether you're dipping your toes with $100 or building a larger position, August might just be the perfect time to buy in. As markets evolve, keeping an eye on earnings revisions and economic indicators will be key, but for now, Wall Street's vote of confidence makes these two hard to ignore. (Word count: 1,048)

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