[ad_1]
Top semiconductor stocks are rising again in intraday trading on Thursday. broadcom (NASDAQ:AVGO), intel (NASDAQ:INTC)and micron technology (NASDAQ:MU) As of 3 p.m. ET, they were up 3.6%, 3.7% and 4%, respectively, according to data from S&P Global Market Intelligence.
Before the market opened today, Mizuho issued the following note: Nvidia The company raised its one-year price target to $1,000 per share from $850. Positive analyst coverage has pushed the artificial intelligence (AI) leader’s stock up about 3.5% in daily trading at the time of writing, and the bullish news has had a ripple effect on other top chip stocks. . But Broadcom, Micron and Intel are also currently enjoying tailwinds from their own company-specific valuations.
Intel racks up victories against the US military
Intel is on track for even bigger wins in the public sector, according to a report published today by Bloomberg. The US government is willing to invest $3.5 billion in the company to help produce chips used for military and intelligence purposes, according to the report.
Concerns that China could soon move to tighten its grip on Taiwan have led other world powers to seek new sources of high-performance semiconductors. the current, taiwan semiconductor manufacturing accounts for about 60% of the global contract chip market and 90% of the market for advanced chips used in AI and other high-speed computing processes.
If China tightens its grip on Taiwan, it could cause major disruptions to supply chains, pose urgent security concerns, and have a dramatic negative impact on the global economy. These risks have prompted the United States and other Western allies to ramp up production capacity for alternative chips.
Intel has emerged as a major beneficiary of this trend, and expects chip manufacturing for third-party customers to be a new growth driver. Even in an optimistic scenario, it would take years to match Taiwan’s semiconductor production capacity. Still, it’s becoming increasingly clear that Intel will have major public sector support to support its efforts in the fab space.
Stifel raises Micron stock rating
In a note released before the market opened today, Stifel upgraded his rating on Micron Technology stock from a “hold” rating to a “buy” rating. The company also raised its one-year price target to $120 per share from $80.
Stifel said favorable demand trends for DRAM pave the way for Micron’s near-term performance and strong stock price. In particular, the company believes that the current interim targets for the company’s performance in 2025 will ultimately prove too low. Between improving business results and paving the way for a doubling of the stock’s valuation, the company believes the stock has plenty of room to play. If the stock reaches the new price target, it would represent an additional approximately 20% upside from current price levels.
Mizuho raised its target price on Broadcom from $1,450 to $1,550 and maintained its rating on the stock at “buy.” Analysts are taking a long-term view of the state of AI and custom he silicon. The company cited tailwinds from AI custom silicon and Ethernet for raising its targets. Further multifaceted expansion with numerous catalysts is expected in the future.
Mizuho is also increasing its bullish stance on Broadcom.
In addition to issuing bullish comments on NVIDIA stock today, Mizuho defended Broadcom. The company maintained its buy rating on the stock and raised its one-year price target from $1,450 per share to $1,550 per share. The stock, currently trading at around $1,397 per share, suggests an additional gain of around 11% over the next year.
Like Nvidia, Mizuho cited rising demand for custom AI chip designs and new Ethernet tailwinds as reasons for raising its price target. The company expects that in addition to expectations for improved performance in the short term, investors will be willing to assign higher valuation multiples to the stock due to improved long-term prospects.
While the market will no doubt experience unexpected twists and turns, there is much to like about the long-term outlook for the semiconductor industry at this point. In addition to positive catalysts from the emergence of new AI technologies, it is almost certain that chips will continue to play an increasingly important role in global economic activity and daily life. Taking a broad approach to the semiconductor industry’s top companies could be a smart move for long-term investors.
Should you invest $1,000 in Broadcom right now?
Before buying Broadcom stock, consider the following:
of Motley Fool Stock Advisor Our analyst team has identified what they believe Best 10 stocks What investors can buy right now…and Broadcom wasn’t among them. These 10 stocks have the potential to generate impressive returns over the next few years.
stock advisor provides investors with an easy-to-understand blueprint for success, including guidance on portfolio construction, regular updates from analysts, and two new stocks each month.of stock advisor Since 2002, the service has more than tripled S&P 500 returns*.
See 10 stocks
*Stock Advisor will return as of February 26, 2024
Keith Noonan has no position in any stocks mentioned. The Motley Fool has positions in and recommends Nvidia and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Broadcom and Intel and recommends the following options: A long January 2023 $57.50 call on Intel, a long January 2025 $45 call on Intel, and a short May 2024 $47 call on Intel. The Motley Fool has a disclosure policy.
“Why Broadcom, Micron, and Intel Stocks Are Soaring Today” was originally published by The Motley Fool.
[ad_2]
Source link
