What's Happening With Nvidia, AMD, and Other Chip Stocks on Friday

Chip stocks, including Nvidia Corp (NVDA), Advanced Micro Devices, Inc (AMD), Broadcom Inc (AVGO), Micron Technology, Inc (MU), Taiwan Semiconductor Manufacturing Co (TSM), Intel Corp (INTC), Monolithic Power Systems, Inc (MPWR), Marvell Technology, Inc (MRVL), and ON Semiconductor Corp (ON), are seeing gains today.

This rise is largely due to the positive momentum created by Western Digital Corp (WDC), which experienced a surge after reporting strong quarterly earnings.

On Thursday, Western Digital announced a first-quarter earnings per share (EPS) of $1.78, surpassing analysts' expectations of $1.73. The company's quarterly revenue increased to $4.09 billion compared to $2.75 billion a year prior, although it fell just short of the forecasted $4.12 billion.

Also Read:Nvidia and Intel Competition Threaten AMD’s Growth, Analyst Says

Looking ahead, Western Digital anticipates second-quarter revenue to fall between $4.2 billion and $4.4 billion, while adjusted EPS is expected to be within the range of $1.75 to $2.05. Analysts had projected $4.35 billion in revenue and $1.95 in EPS.

KeyBanc analyst John Vinh has remarked on the semiconductor supply chain's mixed performance, adjusting several estimates and price targets. Despite ongoing challenges in the analog markets, he noted a rebound in the automotive sector and steady demand in traditional servers and AI technologies, especially with Nvidia's upcoming Blackwell launch slated for the fourth quarter.

Vinh downgraded both Qualcomm Inc (QCOM) and Synaptics Inc (SYNA) to Sector Weight, citing Qualcomm's declines in market share to MediaTek and Synaptics’ difficulties in the IoT segment against domestic rival HiSilicon.

He praised Nvidia and AMD for their strong demand driven by AI and server markets, while identifying potential hurdles for Micron, Monolithic Power, Marvell, and Intel due to market share losses and increasing competition.

Western Digital Stock Forecast for 2024

Research from equity analysts often plays a crucial role in understanding a company's performance. They develop financial models based on both the fundamentals and anticipated future earnings to formulate price targets and stock recommendations.

The target price for Western Digital shares averages around $92.07 for the next year, suggesting a potential upside of 27.01% from the current levels. Notably, no analysts have issued bearish predictions for Western Digital, with 12 analysts providing optimistic ratings. The most optimistic target comes from Rosenblatt at $115.0, while the most conservative estimate from Susquehanna is $75.0.

Price Movements: As of the latest update on Friday, NVDA shares rose by 2.13% to $143.33. Meanwhile, AMD stock climbed by 3.09%, AVGO by 2.47%, MU by 2.80%, TSM by 2.64%, ON by 3.17%, and INTC saw a 3.69% increase.

Also Read:

• Intel Partners With AMD To Counter Arm’s Rising Dominance in Computing

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Stocks, Semiconductors, Earnings