Nvidia, AMD, Broadcom Among Biggest Beneficiaries Of AI Explosion To $400B Market: Analysts
Portfolio Pulse from Shanthi Rexaline
Mizuho Securities has increased its price targets for Nvidia, AMD, Broadcom, and Credo Technology, citing the booming AI market expected to reach $400 billion by 2027. Nvidia, AMD, Broadcom, and Intel are projected to be major beneficiaries of this growth, with significant increases in their AI revenue forecasts. The analyst highlights strong demand for AI chips, tight supplies of Nvidia's H100 AI accelerator chipset, and anticipates further acceleration in demand in 2024. Nvidia's upcoming B100 launch is also seen positively for its 2024 guidance.

February 13, 2024 | 5:25 pm
News sentiment analysis
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POSITIVE IMPACT
AMD's price target was increased from $175 to $200 by Mizuho Securities, driven by its growing AI revenue projections.
AMD's AI revenue projection increase to $18 billion by 2027 underlines its potential in the AI sector, justifying the raised price target.
CONFIDENCE 85
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
Broadcom's price target was lifted from $1,250 to $1,450 by Mizuho Securities, highlighting its AI revenue growth potential.
Broadcom's expected AI revenue growth from $8 billion in 2024 to $20 billion in 2027 signals strong future performance, supporting the higher price target.
CONFIDENCE 85
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
Credo Technology's price target was raised from $25 to $28 by Mizuho Securities, due to its competitive advantage in AI/Compute server racks.
Credo Technology's advantage in reducing Data Center power consumption for AI/Compute server racks by 50% supports the positive outlook and raised price target.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
Nvidia's price target was raised from $625 to $825 by Mizuho Securities, reflecting optimism about its position in the AI market and the upcoming B100 launch.
Nvidia's strong position in the AI market, evidenced by the demand for its H100 AI accelerator chipset and the anticipation for the B100 launch, supports a positive outlook for its stock.
CONFIDENCE 90
IMPORTANCE 95
RELEVANCE 100
NEUTRAL IMPACT
Intel's AI revenue is expected to grow significantly, although its price target was maintained at $55 by Mizuho Securities.
While Intel's AI revenue is projected to grow, the maintained price target suggests that this growth may already be factored into the current valuation.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 70
NEGATIVE IMPACT
The Philadelphia Semiconductor Index (SOXX) experienced a slight decline, reflecting broader market movements in the semiconductor sector.
The slight decline in SOXX may reflect short-term market volatility or reactions to specific news within the semiconductor industry.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50