In fact, the shares touched a 12-year peak of $34.14 just last week, thanks to a bullish analyst note.Ī short squeeze could keep the wind at AMD's back. Overall, the red-hot chip stock has more than tripled in 2018 alone, and is on pace for a seven-week winning streak. The new price target represents territory the stock hasn't reached since 2006. In response, AMD stock is up 1.6% to trade at $32.94. The brokerage firm upped its price targets on AMD and NVDA stocks to $36 and $295, respectively, while complimenting the former's competitive advantage over blue-chip rival Intel (INTC). (NASDAQ:AMD) and Nvidia Corporation (NASDAQ:NVDA). The stock has lost 25% this year.This morning, Mizuho weighed in on chip stocks Advanced Micro Devices, Inc.

Nvidia stock gained 3.3% to $222.03 on Wednesday. Baird analyst Tristan Gerra downgraded the stock to Neutral from Outperform on Monday, citing concerns over slowing consumer demand and falling prices for graphic cards. Most analysts echo Ferragu’s take on the stock, with 82% of analysts polled by FactSet rating it a Buy, though some analysts have taken a more cautious approach. “A weakness driven by crypto would be limited, short-lived, and only an opportunity to add to positions.” The upshot: “We no longer see crypto as a reason not to own the stock,” Ferragu said. And that’s before seeing any upside from the company’s datacenter momentum, which “benefits from excellent demand driver and a product cycle,” he added. Since November 2021, the relative multiple has already contracted by 25%, the analyst estimated. It’s a legitimate fear given that Ethereum mining alone likely boosted Nvidia’s gaming revenue by about $2 billion in 2021, Ferragu calculated.įerragu doesn’t foresee such a drastic impact this time around in part because the market may already be pricing in a crypto correction. ) graphic chips could hurt the company’s revenue. It was something that Ferragu, in 2021, warned investors could happen again as a slowdown in cryptocurrency activity and oversupply of Nvidia (ticker: That was an issue in 2018, whenĪnd other cryptos crashed and Nvidia’s relative multiple contracted by about 30%, Ferragu noted, while sales took a hit for four straight quarters. One of the big concerns for investors is the impact of cryptomining on Nvidia’s revenue. “The secular outlook for gaming, visualization, and datacenter is still very strong, and on the datacenter front, near-term visibility is very strong as well, with supply constraints being the limiting factor,” he wrote in a research note.

Nvda target price 2018