TECH - Nvidia and AMD Rule The Charts - Here Are Other Semiconductor Plays That Analysts Root For | Benzinga
Analysts discussed their favorite semiconductor plays on Monday. Citi analyst Christopher Danely expressed his positive stance on semiconductors given the stabilization in the PC, wireless, and server end markets (combined 56% of the semiconductor Total Addressable Market).
With semiconductor units down 20% year-on-year in 2023, he noted that the worst unit correction in 22 years is almost through the inventory correction.
While Danely expects more estimate cuts to the analog companies due to the auto and industrial correction (combined 30% of semi-TAM), the analyst noted these cuts are getting smaller, and should trough in the first half of fiscal 2024.
Danely is most positive on DRAM and reiterated Micron Technology, Inc (NASDAQ:MU) as his top pick, given his expected 50% year-on-year increase in DRAM pricing in 2024.
Danely’s other Buy-rated names include Advanced Micro Devices, Inc (NASDAQ:AMD), Microchip Technology Inc (NASDAQ:MCHP), AVGO, Analog Devices, Inc (NASDAQ:ADI), ON Semiconductor Corp (NASDAQ:ON), Qualcomm Inc (NASDAQ:QCOM), and GlobalFoundries Inc (NASDAQ:GFS).
Micron’s price target of $95 reflects DRAM upturn. AMD’s price target of $136 builds on PC recovery, server share gains and AI success.
Broadcom’s price target of $1,100 took into account the company being an AI beneficiary, EPS accretion from VMWare.
Microchip’s $100 price target builds upon bottoming of consensus EPS estimates. Qualcomm’s $160 price target attracted attention courtesy of wireless inventory replenishment and share gains at Samsung.
Analog Devices’ price target of $210 gained attention as one of the most defensive name with bottoming consensus EPS estimates. On Semiconductor’s $85 price target reflected silicon carbide offsetting some of the downturn. GlobalFoundries’ $70 price target got a callout for restructuring initiatives offsetting semiconductor downturn.
Mizuho analyst Vijay Rakesh hosted an expert in the data center and AI supply chain for updates on the ramps of new AI products and the outlook on server computing ...