What's Going On With Nvidia, AMD And Other Chip Stocks On Friday?

Chip stocks, including Nvidia Corp NVDA, Advanced Micro Devices, Inc AMD, Broadcom Inc AVGO, Micron Technology, Inc MU, Taiwan Semiconductor Manufacturing Co TSM, Intel Corp INTC, Monolithic Power Systems, Inc MPWR, Marvell Technology, Inc MRVL and ON Semiconductor Corp ON, are trading higher Friday.

The move is in sympathy with Western Digital Corp’s WDC rally following its upbeat quarterly print.

On Thursday, Western Digital reported first-quarter EPS of $1.78, which beat the analyst consensus of $1.73. Quarterly revenue of $4.09 billion trailed the consensus estimate of $4.12 billion compared to $2.75 billion a year ago.

Also Read: Nvidia and Intel Competition Threaten AMD’s Growth, Analyst Says

Western Digital expects second-quarter revenue of $4.2 billion-$4.4 billion, versus the $4.35 billion estimate, and adjusted EPS of $1.75-$2.05, versus the $1.95 estimate.

KeyBanc analyst John Vinh recently flagged mixed performance in the semiconductor supply chain, revising several estimates and price targets. Despite weak analog markets, he cited signs of recovery in automotive and robust demand in traditional servers and AI, with Nvidia’s Blackwell launch on track for the fourth quarter.

Vinh downgraded Qualcomm Inc QCOM and Synaptics Inc SYNA to Sector Weight, pointing to Qualcomm’s market share loss to MediaTek due to price competition and Synaptics’ challenges in IoT against local competitor HiSilicon.

He highlighted Nvidia and AMD positively for their robust AI and server demand, whereas Micron, Monolithic Power, Marvell, and Intel face headwinds from market share losses and intensifying competition.

Western Digital Stock Prediction For 2024

Equity research can be a valuable source of information for learning about a company’s fundamentals. Analysts create financial models based on the fundamentals and expected future earnings of a company to arrive at a price target and recommendation for the stock.

Shares of Western Digital have an average 1-year price target of $92.07, representing an expected upside of 27.01%.

Because of differences in assumptions, analysts can arrive at very different price targets and recommendations. No analysts have bearish recommendations on Western Digital, while 12 analysts have bullish ratings. The street high price target from Rosenblatt is $115.0, while the street low from Susquehanna is $75.0.

Price Actions: At last check Friday, NVDA stock was up 2.13% at $143.33. AMD stock is up 3.09%, AVGO stock is up 2.47%, MU is up 2.80%, TSM is up 2.64%, ON is up 3.17%, and INTC stock is up 3.69%.

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