Why Are Nvidia And AMD Stocks Trading Higher Thursday?
Portfolio Pulse from Anusuya Lahiri
Nvidia (NVDA) and AMD (AMD) stocks are trading higher after Taiwan Semiconductor Manufacturing Company (TSM) reported strong Q4 results, with revenue and EPS beating consensus estimates. TSMC's positive FY24 revenue growth forecast and capital budget also contributed to the optimism. Analysts highlighted Nvidia's value in the AI sector and both Nvidia and AMD's strong positioning due to their AI moat. Meetings at CES with Nvidia executives were optimistic, and the focus on AI and gaming technology at the event aligns with the companies' strategies. Nvidia plans to launch a China-specific chip by 2Q24, and India's Yotta intends to deploy Nvidia's H100s and H200s by 2025. Over the last 12 months, Nvidia's stock has surged over 228%, while AMD's has gained 134%. Wall Street analysts generally view AMD as a Buy, with Barclays' Tom O'Malley being the most optimistic.
January 18, 2024 | 4:12 pm
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POSITIVE IMPACT
AMD's stock is also trading higher following TSMC's earnings beat. Analysts are positive about AMD's AI moat and the stock has been rated as a Buy by Wall Street, with significant gains in the past year.
AMD is expected to benefit in the short term from TSMC's positive earnings report and the overall bullish sentiment from analysts regarding its AI technology and market position.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 85
POSITIVE IMPACT
Intel's focus on AI moving from the cloud to consumer objects and PCs was highlighted, indicating opportunities for the semiconductor industry, which may positively impact investor sentiment.
Intel's mention of AI's expansion into consumer technology suggests a growing market that could benefit the company, potentially leading to a positive short-term impact on its stock.
CONFIDENCE 70
IMPORTANCE 65
RELEVANCE 60
POSITIVE IMPACT
Nvidia's stock is trading higher due to TSMC's positive earnings, which bodes well for Nvidia's supply chain. Analysts are optimistic about Nvidia's position in the AI market and its upcoming China-specific chip. The stock has seen significant growth over the past year.
Nvidia's stock is likely to experience a positive short-term impact due to the strong performance of its supplier TSMC and the optimistic outlook from analysts on Nvidia's AI capabilities and market strategy.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
TSMC reported higher than expected Q4 revenue and EPS, with a positive revenue growth forecast for FY24. This has positively influenced the stock prices of its clients, Nvidia and AMD.
TSMC's strong financial performance is a key driver for the positive movement in the stock prices of its clients, suggesting a positive short-term impact on TSMC's own stock as well.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100