TECH - Why Are Nvidia And AMD Stocks Are Trading Higher Thursday? | Benzinga
Nvidia Corp (NASDAQ:NVDA) is trading higher Thursday along with peers, including Advanced Micro Devices, Inc (NASDAQ:AMD), after their crucial supplier, Taiwan Semiconductor Manufacturing Company Ltd (NYSE:TSM), impressed the Street with its fourth-quarter results.
The Taiwan contract chipmaker clocked a fourth-quarter revenue of $19.62 billion, down by 1.5% year-on-year, beating the consensus of $19.45 billion. EPS of $1.44 beat the consensus of $1.37.
TSMC expects FY24 revenue to grow in the low to mid-20% range.
The contract chipmaker expects a FY24 capital budget of $28 billion – $32 billion vs $30.45 billion reported in 2023.
Bernstein analyst Stacy Rasgon hailed Nvidia as the cheapest stock to gain exposure to an artificial intelligence frenzy.
KeyBanc analyst John Vinh noted over 30% upside from Nvidia and AMD due to their AI moat.
At CES, Truist analyst William Stein met with executives representing Nvidia and its peers. Despite recent negative updates from other tech companies, the tone of the meetings was more optimistic than expected.
Stein maintained a positive outlook on the semiconductor industry, with Nvidia and AMD among his top picks.
A key focus at this ...