Nvidia shares recently traded at $217.56, down 0.2%, and AMD stood at $108, up 0.3%.
Hans Mosesmann of Rosenblatt Securities has a buy recommendation for both stocks. He loves the possibilities created by the rise of artificial intelligence, Bloomberg reports.
“The emerging transition to AI manufacturing and moderation of the silicon cadence of Moore’s Law leads to the largest semiconductor cycle,” Mosesmann wrote.
Piper Sandler’s Harsh Kumar has overweight ratings for both companies in Santa Clara, California, but he is cautious.
“We see that higher-numbered stocks are more prone to downside risk,” he wrote, according to Bloomberg.
“Broadcom” (AVGO) – Get Report is best positioned given its discounted valuation and tacky software business, while Nvidia and AMD are most at risk given their higher valuations and exposure to discretionary areas.”
Broadcom recently traded at $480.59, down 0.2%
Kumar is confident in the near-term performance of the semiconductor industry. But “it could get a little cloudy in the second half of 2022, at least relative to current trends,” he said.
Morningstar analyst Abhinav Davuluri loves Nvidia, but thinks it’s way too overrated. Last week, he estimated the fair value at $138.
“Our fair value estimate to Nvidia…includes a 50% probability that Nvidia will complete its forthcoming acquisition of Arm,” he said.
In the meantime, “[wide-moat] Nvidia reported remarkable second quarter results with revenue exceeding management guidelines,” he said.
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