<div id="readability-page-1">The S&amp;P 500 index recently set a new record high. This was driven by indications that the Federal Reserve may be more willing to cut interest rates as well as signs that geopolitical risk factors may be easing. Even with these new highs, there are still attractive stocks trading at beaten-down prices compared to previous valuation highs -- and so they could deliver huge returns for long-term investors. Read on to see why two Motley Fool contributing analysts think these stocks stand out as strong buy-and-hold plays right now. <div><img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84MjMyMzMvZ2V0dHlpbWFnZXMtMTM1MjYwNzE3MC5qcGcmdz03MDA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="365" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84MjMyMzMvZ2V0dHlpbWFnZXMtMTM1MjYwNzE3MC5qcGcmdz03MDA"/>Image source: Getty Images. </div> <h2>AMD stock: 32% off its high</h2> Keith Noonan (Advanced Micro Devices): Spurred by excitement surrounding the company's opportunities in the artificial intelligence (AI) space, Advanced Micro Devices (AMD -2.59%) stock hit a record high of over $211 per share in March 2024. While the company still has plenty of untapped potential for wins in the category, the business's performance in graphics processing units (GPUs) for data centers fell short of those peak expectations. Even though AMD recorded significant growth in the data center, expansion was slower than initially anticipated -- and the business continued to lag far behind market-leader Nvidia in the category. As a result, AMD stock is still down roughly 32% from its high, even after a recent rally. On the other hand, things appear to be looking up for the company in the AI race. Earlier this month, AMD launched its Instinct MI350 processors, its new top-of-the-line offering in the data center GPU market. OpenAI, the company behind ChatGPT, is already a buyer of the processors. Signs suggest that Amazon also may be incorporating the MI350 into its data centers. AMD will be launching its Instinct MI400 line next year, and the new processor could help it better compete with Nvidia in the data center space. Conversely, AMD doesn't necessarily need to beat Nvidia when it comes to AI processors in order to deliver wins for long-term shareholders. While AI has grown by incredible leaps and bounds in a relatively short period of time, the technology is still in its infancy. Tech giants, including Microsoft and Meta Platforms, currently account for a large share of overall artificial-intelligence hardware spending and are prioritizing top-of-the-line processors that can give them an edge in AI model training. Right now, this means that Nvidia's processors are dominating the overall market -- but some conditions will likely change with time. As the AI market continues to expand, there will likely be increased demand for processors across a wider range of specs and price points. Compared to ultra-high-end processors used to train AIs, chips used for actually running artificial intelligence applications should also come to account for a larger part of the overall market. Both of these dynamics stand to benefit AMD, and its stock should be able to bounce back and set a new high. <h2>Carnival stock: 62% off its high</h2> Jennifer Saibil (Carnival): Carnival (CCL 1.65%) was once a dependable, dividend-paying market beater, but it's a rare stock that still hasn't completely recovered from the pandemic. Its business is back and better than ever, but the company has massive debt that's getting in the way of a solid investing thesis for many investors. However, 10 years from now, the extra debt should be completely paid off. Short of another global pandemic, Carnival should be thriving. It's thriving even now, with record revenue and deposits and an excellent booked position. It had a blowout fiscal second quarter (ended May 31), with a 9% increase in revenue year over year, and earnings per share (EPS) crushed expectations, coming in at $0.35, when Wall Street was expecting $0.25. Even so, the stock is still down roughly 62% from its high. All signs point to a healthy, growing business with lots of future potential. Highlights from the second quarter include maintaining its high booking positions and historically high prices, another record high in deposits of $8.5 billion, and record operating income of $934 million. Carnival has plenty of new ships and features on the way to generate demand and keep customers coming. It's launching its new, exclusive destination, Celebration Key, in July, and has two more, RelaxAway and Isla Tropicale, on schedule for release next year. The cruise company has new ships scheduled for delivery in the next few years and is refitting some of its existing ones. It's also launching a new, onboard waterpark and rolling out a new membership program in 2026. The company's debt, however, is still sitting on the balance sheet. As of the end of the second quarter, it still had $27.3 billion in total debt. Carnival has done an efficient job of paying it off so far, including refinancing $7 billion this year at more favorable terms and prepaying another $350 million in higher-interest rate notes in the second quarter. It got several upgrades from credit agencies over the past two quarters and is a notch away from being investment grade with two of them. If Carnival continues paying off its debt at current rates, it should be well within historical norms in just a few years from now. Once it reaches that, the stock will likely rise and go back to its market-beating performance. </div>

The S&P 500 index has reached a new record high, driven by potential interest rate cuts from the Federal Reserve and easing geopolitical risks. Despite this, stocks like Advanced Micro Devices (AMD) and Carnival are down 32% and 62% from their highs, respectively. AMD is poised for growth in the AI sector with new product launches, while Carnival shows strong revenue growth and future potential despite significant debt. Analysts recommend both as strong buy-and-hold options for long-term investors.

- The S&P 500 index recently reached a new record high, influenced by potential Federal Reserve interest rate cuts and easing geopolitical risks.  
- Advanced Micro Devices (AMD) stock is down 32% from its peak despite growth in the AI sector, while Carnival's stock is 62% off its high, hindered by significant debt but showing strong revenue growth and future potential.  
- Both companies are positioned for recovery, with AMD launching new processors and Carnival improving its financial health, suggesting possible long-term gains for investors.

2 Stocks Down 32% and 62% to Buy Right Now and Hold for the Next Decade