Investors in NVIDIA Corp (Symbol: NVDA) saw new options begin trading today, for the July 28th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the NVDA options chain for the new July 28th contracts and identified one put and one call contra
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U.S. stock indexes edged higher on Thursday as a dip in bond yields supported megacap stocks, although investors remained cautious ahead of key inflation data and the Federal Reserve's policy meeting next week.
Over the last several weeks, investors listened to corporate executives discuss the topic of artificial intelligence (AI) on earnings calls. While AI seems like the new buzzword, there are some legitimate reasons to be bullish.
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The Nasdaq is home to many of the best growth stocks in the world. Some of them have generated life-changing returns for investors, including Apple (NASDAQ: AAPL), Nvidia (NASDAQ: NVDA), and Idexx Laboratories (NASDAQ: IDXX). These stocks have all been 10-baggers over the past de
For Immediate ReleaseChicago, IL – June 8, 2023 – Zacks Director of Research Sheraz Mian says, "2023 Q2 earnings for the S&P 500 index are expected to decline -8.8% from the same period last year on -0.6% lower revenues, with
Below is Validea's guru fundamental report for NVIDIA CORPORATION (NVDA). Of the 22 guru strategies we follow, NVDA rates highest using our Quantitative Momentum Investor model based on the published strategy of Wesley Gray. This momentum model looks for stocks with strong and c
Apple (NASDAQ: AAPL) is the largest company in the world today with a $2.9 trillion market capitalization. Its stock went public in 1980, and it has since delivered a whopping return of 183,300% for investors.
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Advanced Micro Devices (NASDAQ: AMD) stock has delivered stunning gains of 84% so far in 2023, which may seem surprising given that the company's revenue and earnings are expected to shrink this year.
Dismal demand in certain end markets and high inflation are expected to drag down global semiconductor revenue by 10.3% in 2023, per the latest World Semiconductor Trade Statistics (WSTS) report. However, WSTS expects the industry to rebound in 2024 with an estimated growth rate of 11.8%. Growing demand for generative
artificial intelligence (AI) and the continued transition to the
cloud bodes well for the long-term growth of
chip stocks. We used
TipRanks’ Stock Comparison Tool to place Advanced Micro Devices (
NASDAQ:AMD
), Nvidia (
NASDAQ:NVDA
), and Intel (
NASDAQ:INTC
) against each other to pick the most attractive chip stock.
Advanced Micro Devices (NASDAQ:AMD)
Chip giant Advanced Micro Devices reported market-beating first-quarter
earnings last month, even as
revenue declined 9% year-over-year to $5.35 billion due to continued weakness in the PC market. First-quarter adjusted earnings per share (EPS) fell 47% to $0.60. Also, the company issued
weak Q2 guidance.
Nonetheless, CEO
Lisa Su assured investors that the company is confident about its growth in the second half of the year, as the PC and server markets strengthen. Moreover, AMD sees significant long-term opportunities to strengthen its data center and embedded segments and accelerate the adoption of its artificial intelligence (AI) offerings. Currently, rival Nvidia is stealing the spotlight when it comes to AI chips.
AMD also claimed in its Q1 earnings press release that it continues to lead the market in “confidential computing,” with major cloud service providers, including Microsoft (
MSFT
) Azure, Google (
GOOGL
) (
GOOG
) Cloud, and Oracle (
ORCL
) Cloud Infrastructure announcing new capabilities based on AMD EPYC processors.
Is AMD Stock a Good Buy?
On May 31, Bank of America Securities analyst
Vivek Arya increased the price target for AMD to $135 from $120, citing rising sector multiple. However, the
analyst reiterated a Hold rating due to total addressable market (TAM) headwinds related to x86, a chip architecture used in PCs and servers. Moreover, Arya believes that the company’s data center GPU portfolio remains in its early stages.
Overall, Wall Street’s Moderate Buy consensus rating on Advanced Micro Devices is based on 18 Buys and eight Holds. The average price target of $102.81 implies a possible downside of nearly 13% following a strong year-to-date rally of about 82%.
Nvidia (NASDAQ:NVDA)
Nvidia recently reported better-than-anticipated
earnings for the first quarter of Fiscal 2024 (April 30, 2023), despite a decline in the top line due to weakness in the gaming unit. The company’s
blowout Q2 guidance ignited an impressive spike in the stock. Nvidia expects Q2 FY24 revenue of $11 billion, plus or minus 2%, with the outlook being more than 50% higher than analysts’ consensus estimate of $7.15 billion.
Even prior to the Q2 outlook announcement, Nvidia shares advanced significantly on expectations of strong demand for its chips due to the buzz around OpenAI’s
ChatGPT and the aggressive initiatives by tech behemoths to capture the opportunities in AI.
NVDA stock has skyrocketed over 156% year-to-date.
Is NVDA Stock a Buy, Hold, or Sell?
On Wednesday, JPMorgan analyst
Harlan Sur reiterated a Buy rating on Nvidia following an investor group meeting with Simona Jankowski, the company's VP of investor relations.
The analyst said that Nvidia’s H100 shipments continue to generate higher volumes in Q2 and into the second half of 2023, even as the market for its A100 offering remains robust. Given the solid demand for its data center products and the impressive demand pull from generative AI, Nvidia has multi-quarter order visibility.
Additionally, Sur highlighted that the company's auto revenue pipeline stands at $14 billion and will unfold over the next six years. Sur thinks that Nvidia's automotive franchise should see a revenue inflection in the next two to three years, thanks to the revenue-sharing partnerships with Mercedes-Benz and Jaguar.
Nvidia scores Wall Street’s Strong Buy consensus rating based on 32 Buys and four Holds. The average price target of $449.92 implies 20% upside.
Intel (NASDAQ:INTC)
Despite a steep decline in revenue and
earnings, Intel managed to surpass analysts’ expectations for the first-quarter results for Fiscal 2023 (April 1, 2023). Q1 FY23
revenue declined 36% year-over-year to $11.7 billion and the company slipped to an adjusted loss per share of $0.04 from an adjusted EPS of $0.87 in the prior-year quarter.
Over the past few years, Intel has lost ground to players like AMD due to limited innovation, strategic missteps, and manufacturing delays. The company’s turnaround efforts could improve its prospects in the quarters ahead.
Recently, investors cheered Intel CFO
David Zinsner’s comments on the Q2 outlook at TD Cowen's 51st Annual Technology, Media & Telecom Conference held on May 31. Zinsner said that the company sees Q2 revenue at the upper end of its previous guidance range of $11.5 to $12.5 billion, tracking to reach $12 billion to $12.5 billion.
What is the Price Target for Intel Stock?
Following the recent CFO update, Deutsche Bank analyst
Ross Seymore reiterated a Hold rating on Intel and a price target of $32. The analyst said that he was pleased with this “mid-quarter update” striking a more positive tone, further showing that the company is turning the cyclical corner.
The analyst believes that the core debate for INTC will revolve around not only its ability to achieve five nodes in four years, but also its ability to drive improved revenue growth and profitability from these nodes. Seymore highlighted several concerns, including intense competition and the magnitude of investments required, which could impact Intel’s ability to improve its top and bottom line.
While Seymore was encouraged by the CFO’s favorable update on near-term trends, he maintained a Hold rating and a price target of $32, as he waits to gain more confidence in the longer-term structural questions about Intel.
Overall, Wall Street is sidelined on
INTC stock, with a Hold consensus rating based on five Buys, 17 Holds, and four Sells. The average price target of $30.84 implies a possible downside of 1.4%.
Shares have advanced over 18% since the start of 2023.
Conclusion
Despite a stellar year-to-date rally, Wall Street continues to see further upside in Nvidia. Analysts are more upbeat about Nvidia than AMD and remain sidelined on Intel. Robust potential for Nvidia’s GPUs due to AI-powered demand is expected to drive the stock higher. As per TipRanks’ Smart Score System, Nvidia scores a “Perfect 10,” implying that the stock could outperform the broader market over the long term.
Disclosure
Worries that have dogged U.S. stocks for months are fading, pushing some Wall Street firms to raise their outlooks for equities and beckoning investors who have remained on the sidelines.
Note: The following is an excerpt from this week’s Earnings Trends report. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>>
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