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On Tuesday, the stock price of major chipmaker Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD) rose 3.1% and 8.3%, respectively, both hitting 52-week highs. Also, Micron (NASDAQ:MU) stock rose 2.7%. The rally came after KeyBank analyst John Bin reiterated his “buy” rating on these stocks due to his bullish outlook for artificial intelligence (AI)-powered chips.
Additionally, analysts raised their price targets for all three stocks. Nvidia rose from $650 to $740, AMD rose from $170 to $195, and Micron rose from $100 to $115.
Analyst opinion
For NVDA, Vin believes the company’s AI capabilities remain robust and that data center revenue could exceed $100 billion in 2024. Additionally, NVDA is expected to launch its next-generation AI chip, the B100, in the third quarter. Analysts expect this advanced processor to deliver a 50% performance improvement over the previous generation.
For AMD, Vinh sees strong demand for its AI chip MI300X. He expects the company to generate about $8 billion in revenue this year. The expected sales are significantly higher than his previous forecast of $3 billion to $4 billion. Analysts also see strong momentum for AMD’s high-performance microprocessor, Genoa, which they predict will capture 30% to 35% market share in the server market by 2024.
As for MU, analysts expect the company to benefit from the expected launch of Micron’s HBM3E memory chips later this year. These chips are used to power advanced AI servers.
Which semiconductor stocks are best?
Wall Street analysts are currently bullish on all three stocks: NVDA, AMD, and MU. In terms of future price performance, the analyst expects upside potential for NVDA and MU to be 17.9% and 13.5%, respectively, while for AMD he expects downside potential to be 7.4%. Therefore, NVIDIA stock appears to be the best of the three semiconductor stocks.
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