Tech Success: NVIDIA and AMD Stocks Soar to Record Highs in Semiconductor Boom!
NVIDIA and Advanced Micro Devices (AMD) saw their stock prices go up on Tuesday because investors are feeling positive about the demand for chips that use Artificial Intelligence (AI). This optimism of Nvidia and AMD stock led Wall Street analysts to increase their price targets for these big semiconductor companies.
NVIDIA (nvidia stock) is known for having a strong position in the market for advanced AI chips. However, AMD (amd stock) is expected to do well this year as they work on delivering more of their own chips to business customers. This information comes from analysts at Barclays, led by Tom O’Malley.
According to Barclays analysts, customers are using the entire NVIDIA platform more because of supply issues, getting priority shipments. They believe that 2024 is the year when AI will become more widespread, especially with other chip manufacturers like AMD gaining popularity.
NVIDIA’s stock went up by 3% to $563.65, hitting a new record high. AMD’s shares increased by 7.5% to $157.57, surpassing their previous high for the year. NVIDIA has become the most valuable chip manufacturer globally, with its value more than tripling in the past year. AMD’s value has also more than doubled.
Barclays raised their price target for AMD shares from $120 to $200, and KeyBanc analysts increased their target from $170 to $195. NVIDIA got a new price target of $740, up from $650, from KeyBanc. Both companies’ stocks are trading between the highs of the PHLX Semiconductor Index, which went up by 1.15% for the session.
On average, the price target for NVIDIA, according to 53 analysts, is $625, slightly below their current price of $627.50 a month ago, with a recommendation to ‘buy.’ For AMD, the average price target from 47 analysts is $145, higher than $130 a month ago, and they all suggest buying AMD stocks.
NVIDIA plans to start making a big AI chip at the end of this year to follow strict U.S. export rules for their Chinese customers, as reported earlier this month by Reuters. In December, AMD announced two new AI data center chips, aiming to compete with NVIDIA’s top microprocessors.
