Nvidia Takes The Crown As AI-Chip Winner, Intel And AMD Still Have Potential: Analyst

In the rapidly expanding world of artificial intelligence (AI), analysts feel Nvidia Corporation NVDA is poised to reap significant benefits, reports Barron’s.

According to Mizuho Securities analyst Vijay Rakesh, the surge in A.I. applications is expected to drive up the demand for semiconductors, with Nvidia leading the pack.

Rakesh increased his projected stock price target for Nvidia to $530, up from the previous $400, and maintained a ‘Buy’ rating for the stock. This valuation would value the company at approximately 49 times its projected earnings.

Long-Term Optimism for Intel and AMD: While Nvidia is likely to be the primary beneficiary in the short term, Rakesh also expressed optimism for Intel Corporation INTC and Advanced Micro Devices, Inc. AMD in the longer term.

"We believe AMD is well-positioned as a competitor to NVDA with a lower-priced GPU [graphics-processing unit], but we see it struggling to take much incremental share near-term due to NVDA's technology advantage and first-to-market position," Rakesh wrote, reiterating a ‘Buy’ rating for AMD. He has set the target price at $140.

Additionally, Rakesh raised his target price for Intel to $33, up from the previous $30, and assigned a ‘Neutral’ rating. He pointed out that Intel is likely to benefit from increased valuations across the semiconductor sector and expects additional revenue from AI-related activities.

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AI’s Impact on Semiconductor Industry: The AI revolution is set to significantly boost the demand for semiconductors, with Nvidia, Intel, and AMD poised to capitalize on this trend. The future of these tech giants in the AI landscape will be shaped by their ability to innovate and adapt to the rapidly evolving market dynamics.

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