On Tuesday, shares of Nvidia and Advanced Micro Devices (AMD) witnessed a notable surge, propelled by heightened investor confidence in the burgeoning demand for artificial intelligence (AI)-powered chips. Wall Street analysts responded to this positive trend by raising their price targets for these semiconductor giants, as reported by Reuters.
Nvidia, currently holding a dominant position in the advanced AI chip market, faces competition from AMD, which is expected to make significant strides this year. Analysts at Barclays, led by Tom O’Malley, anticipate increased deliveries of AMD’s own chips to enterprise clients. The analysts noted in an investor note that due to supply constraints, customers often opt for the entire Nvidia platform to secure priority shipments of accelerators. Looking ahead to 2024, Barclays envisions AI expanding further, with other chipmakers such as AMD gaining market share.
Nvidia’s stock experienced a 3% uptick, reaching $563.65 and establishing a new record high. Concurrently, AMD shares surged by 7.5% to $157.57, marking their highest level in over two years. Notably, Nvidia’s shares have more than tripled in value over the past year, solidifying its position as the world’s most valuable chipmaker, while AMD’s shares have more than doubled.
In response to the positive outlook, Barclays raised its price target for AMD shares from $120 to $200. KeyBanc analysts also adjusted their price target for AMD, increasing it to $195 from $170. These upward revisions reflect the optimistic sentiments surrounding AMD’s prospects in the semiconductor market, driven by the anticipated growth in demand for AI-powered chips.
Post Your Comments