BofA analyst Vivek Arya sees Q2 for U.S. semiconductor companies in line and modestly below Q3 on lukewarm macro, but CY24 EPS recovery could sustain longer-term stock momentum.

CAMT is a semiconductor manufacturing equipment supplier highly exposed to some of the fastest-growing end markets in the space, including advanced packaging (~60% of sales) and compound semiconductors (~15% of sales). 

Given increased exposure to the above growth markets, the analyst sees potential for multiple re-rating toward larger front-end peers.

Excluding product cycle themes in cloud/AI and cars/EV (electric vehicles), the analyst remained lukewarm on second-half semiconductor demand heading into earnings. 

The analyst sees in line Q2 and in line/modestly below expectations Q3 outlook in consumer (phones/PC), enterprise, telco, and industrial due to the lack of China stimulus and inflation/rates-induced deceleration in the U.S./Europe.

The analyst raised estimates and price targets for NVDA to $550 from $500, with CY24 EPS at $11.05 (vs. $10.01 prior) and CY27E EPS power of $22 (vs. $20 earlier).

The analyst also raised his price targets for MRVL to $80 from $75 and th leading EV vendor ON to $120 from $110 and complexity stocks (semicap/test/design automation).

The analyst reduced Advanced Micro Devices, Inc's (NASDAQ:AMD) price target to $130 from $135 as NVDA's full-stack AI platform will pressure AMD data center GPU market share upside (alongside side risks in CPU market cannibalization).

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