Categories: Business

Nvidia, AMD, Intel Price Targets Are Cut. This Analyst Sees Chip Demand Slowing.

[ad_1]

Text size


Dreamstime

Semiconductor stocks have soared over the last few quarters, driven higher by robust demand for chips amid a global supply shortage.

But the tide may be turning for semiconductor manufacturers, warned Truist analyst William Stein.

“On Wednesday afternoon we learned of a sudden negative shift in demand signals from a wide swath of computer, consumer, and communications OEMs [original equipment manufacturer] to at least some of their semi suppliers,” he wrote in a research note.

Stein noted the cuts related mostly to production in the second quarter, but demand throughout the second half of the year remained strong. While a single-quarter adjustment or a temporary headwind was possible, he was concerned that “a combination of just enough demand destruction and just enough additional supply is leading to a traditional cyclical downturn.”

As a result, Stein adjusted his price targets for several key semiconductor stocks, including




Advanced Micro Devices

(ticker:




AMD

),




Intel

(




INTC

), and




Nvidia

(




NVDA

). His new price target for AMD is $111, down from $144, while Intel’s target was cut to $49 from $53. He retained a Hold rating on both the stocks.

Nvidia remained a Buy for Stein, even though he lowered his price target to $298 from $347. While he is constructive on the stock and continues to rate it a Buy, he said near-term price effects could become more volatile.

His favored stocks were




NXP Semiconductors

(




NXPI

),




Analog Devices

(




ADI

), and




ON Semiconductor

(




ON

), which he said were less exposed to demand from the computer, communications, and consumer segment and were more reliant on industrial and auto demand.

Semiconductor stocks had been on a tear over the last seven quarters, but have since begun to normalize, with semi stocks off 20% from their peak last December, Stein said.

AMD stock was down 1.5% to $102.23 on Friday. The stock has lost almost 30% this year. Intel was down 1% to $47.10, while Nvidia was down 2.4% to $236.38.

Write to Sabrina Escobar at sabrina.escobar@barrons.com

[ad_2]
Source link
Admin

Recent Posts

Practical Tips for Carpet Cleaning on a Budget

Have you ever looked down at your carpet and wondered if there’s a budget-friendly way…

2 weeks ago

The Best CSGO Case to Open in 2025: Top Picks for CS2 Skins

Counter-Strike 2 (CS2) has elevated the thrill of case openings, captivating both seasoned CS:GO veterans…

2 weeks ago

The Most Common Deal Breakers That Make Buyers Walk Away When I Sell My Car Online in Little Rock, AR

Trying to sell a car online should be simple, but sometimes buyers lose interest fast.…

3 weeks ago

Why Free Spider Solitaire is the Perfect Game for Quiet Evenings

In the hustle and bustle of modern life, finding moments of quiet solace can feel…

1 month ago

Syracuse Guide To Socializating Your Dog

You have probably heard on the importance of socializing dog after getting a puppy. It…

1 month ago

2025 Vision: How Automation is Reshaping the Mortgage Landscape

The mortgage industry is undergoing a significant transformation, driven by the rise of automation and…

1 month ago