Nvidia and Intel Show Resilience in Semiconductor Industry, Analyst Reports

KeyBanc Capital Markets analyst John Vinh has provided an update on the semiconductor industry, stating that while the overall market remains weak, there are a few companies that are outperforming. Vinh raised his revenue estimates for Nvidia and Intel, highlighting improving product demand for both companies.

Nvidia, a leader in the field of generative AI, is benefiting from the growing interest in this technology. Vinh notes that demand for AI servers incorporating Nvidia’s chips is “extremely robust.” He believes that Nvidia is uniquely positioned to dominate the fast-growing workloads in cloud and enterprise, particularly in the field of AI/ML (machine learning). Vinh reiterated his Overweight rating for Nvidia shares and raised his price target to $750.

While not on the same level as Nvidia, Intel also has pockets of strength. Vinh points out that Intel’s latest server chip, Sapphire Rapids, is starting to ramp up in volume, and PC demand remains stable. These positive signs contribute to Vinh’s increased revenue estimate for Intel this year.

Overall, Vinh’s analysis suggests that despite the challenging market conditions, both Nvidia and Intel are showing resilience and are well-positioned to benefit from the evolving demands of the industry.

Source: Barron’s