In a dynamic shift for semiconductor giants, Nvidia Corp
In his latest report, analyst John Vinh from KeyBanc Capital Markets has made significant adjustments to price targets and estimates for Nvidia and AMD's stock based on recent insights from Asia's semiconductor landscape.
Nvidia Gets a Boost
Vinh has raised Nvidia stock's price target from $130 to $180, citing robust demand in AI and data centers.
Despite upcoming product launches, such as Blackwell in the second half of 2024, demand for NVDA's H100 remains strong, with no signs of a slowdown. Vinh anticipates that the upcoming GB200 will play a crucial role, particularly NVL72, driving data center revenues to potentially exceed $200 billion by 2025.
AMD Faces Mixed Signals
Conversely, Vinh adjusted AMD's price target downwards from $230 to $220.
While acknowledging positive signs like strong demand for 500K MI300X GPUs and improving traditional server demand, challenges persist in the embedded sector. AMD continues to navigate inventory destocking headwinds, impacting its overall outlook despite sector-wide improvements.
Asia Semiconductor Insights - Key Takeaways
Vinh's quarterly supply chain findings reveal a nuanced picture: traditional server demand is on the rise, buoyed by major U.S. cloud providers and moderate improvements in enterprise and Chinese cloud service providers.
However, challenges persist in the automotive market, hindering broader recovery efforts seen earlier in the year.
As semiconductor stocks navigate these mixed signals, active traders and investors alike will be closely monitoring earnings reports and market reactions.
Nvidia and AMD's divergent trajectories underscore the volatility and strategic shifts within the semiconductor industry, influenced heavily by global supply chain dynamics and technological advancements.
