S&P 500   4,225.05 (+1.08%)
DOW   33,115.52 (+0.63%)
QQQ   352.29 (+1.24%)
AAPL   179.68 (+1.37%)
MSFT   332.01 (+1.10%)
META   273.30 (+3.24%)
GOOGL   123.39 (+0.42%)
AMZN   122.90 (+1.92%)
TSLA   208.44 (+2.21%)
NVDA   399.11 (+5.49%)
NIO   7.59 (+0.80%)
BABA   83.75 (+5.28%)
AMD   120.34 (+1.80%)
T   15.81 (+0.51%)
F   12.11 (+0.92%)
MU   69.14 (+1.38%)
CGC   0.83 (-0.60%)
GE   104.92 (+3.34%)
DIS   88.59 (+0.72%)
AMC   4.61 (+2.44%)
PFE   38.00 (-0.05%)
PYPL   63.12 (+1.82%)
NFLX   404.85 (+2.43%)
S&P 500   4,225.05 (+1.08%)
DOW   33,115.52 (+0.63%)
QQQ   352.29 (+1.24%)
AAPL   179.68 (+1.37%)
MSFT   332.01 (+1.10%)
META   273.30 (+3.24%)
GOOGL   123.39 (+0.42%)
AMZN   122.90 (+1.92%)
TSLA   208.44 (+2.21%)
NVDA   399.11 (+5.49%)
NIO   7.59 (+0.80%)
BABA   83.75 (+5.28%)
AMD   120.34 (+1.80%)
T   15.81 (+0.51%)
F   12.11 (+0.92%)
MU   69.14 (+1.38%)
CGC   0.83 (-0.60%)
GE   104.92 (+3.34%)
DIS   88.59 (+0.72%)
AMC   4.61 (+2.44%)
PFE   38.00 (-0.05%)
PYPL   63.12 (+1.82%)
NFLX   404.85 (+2.43%)
S&P 500   4,225.05 (+1.08%)
DOW   33,115.52 (+0.63%)
QQQ   352.29 (+1.24%)
AAPL   179.68 (+1.37%)
MSFT   332.01 (+1.10%)
META   273.30 (+3.24%)
GOOGL   123.39 (+0.42%)
AMZN   122.90 (+1.92%)
TSLA   208.44 (+2.21%)
NVDA   399.11 (+5.49%)
NIO   7.59 (+0.80%)
BABA   83.75 (+5.28%)
AMD   120.34 (+1.80%)
T   15.81 (+0.51%)
F   12.11 (+0.92%)
MU   69.14 (+1.38%)
CGC   0.83 (-0.60%)
GE   104.92 (+3.34%)
DIS   88.59 (+0.72%)
AMC   4.61 (+2.44%)
PFE   38.00 (-0.05%)
PYPL   63.12 (+1.82%)
NFLX   404.85 (+2.43%)
S&P 500   4,225.05 (+1.08%)
DOW   33,115.52 (+0.63%)
QQQ   352.29 (+1.24%)
AAPL   179.68 (+1.37%)
MSFT   332.01 (+1.10%)
META   273.30 (+3.24%)
GOOGL   123.39 (+0.42%)
AMZN   122.90 (+1.92%)
TSLA   208.44 (+2.21%)
NVDA   399.11 (+5.49%)
NIO   7.59 (+0.80%)
BABA   83.75 (+5.28%)
AMD   120.34 (+1.80%)
T   15.81 (+0.51%)
F   12.11 (+0.92%)
MU   69.14 (+1.38%)
CGC   0.83 (-0.60%)
GE   104.92 (+3.34%)
DIS   88.59 (+0.72%)
AMC   4.61 (+2.44%)
PFE   38.00 (-0.05%)
PYPL   63.12 (+1.82%)
NFLX   404.85 (+2.43%)

Will Advanced Micro Devices Follow NVIDIA Higher? 

Key Points

  • NVIDIA is moving up after reversing on better-than-expected results and analyst upgrades. 
  • AMD is not far behind and is supported by analysts. 
  • A break out could get AMD shares up double-digits by early summer. 
  • 5 stocks we like better than Advanced Micro Devices

 Advanced Micro Devices stock price

The entire chip sector shows a bottom and is on the cusp of reversal, with NVIDIA NASDAQ: NVDA  in the lead. The company’s Q4 results were better than expected due to unexpected strengths that led to solid guidance. The stock is up about 150% from its latest bottom and on track to hit higher highs this year. The move is partly driven by the analysts lending support to the market. In the case of NVIDIA, its stock has received 2 dozen analyst updates that have it breaking out of a Head & Shoulders Reversal and ready to tackle the next resistance point near $275. 

The 36 analysts rating NVIDIA have it pegged at a Moderate Buy with a price target trending higher than last quarter and last month. The caveat is that the consensus has the stock trading at fair value at its current levels, but the trend points to higher levels. The latest update comes from Robert W. Baird, who upped its target to $300. That is a full 21% above the current consensus and has the stock trading above its next resistance point. Citigroup and Morgan Stanley both see another few hundred basis points of upside on top of that. 

NVIDIA Up On AI, Next-Gen: Gains Will Be Capped 

The risk for NVIDIA shareholders is the outlook. The outlook is good, undoubtedly less bad than it could have been, but the company is still expecting a 20% decline in revenue for the current quarter. The strength in Q4 was driven by a shift to next-gen technologies and not so much by end-user demand, so there is a chance the weakness could persist through the end of the fiscal year. 


AMD’s NASDAQ: AMD results weren’t better than NVIDIA’s and may fall into the “worse” column. The takeaway is that the analysts had secretly feared even worse than the company reported, which has put a bottom in the share prices. The results were driven by AMD’s diversification which is expected to continue supporting business this year. The Data Center and Embedded segments will offset weakness in Client and Gaming, resulting in a 10% YOY decline in revenue for the current quarter. 

The analyst reaction was favorable, so there is a chance the market could follow NVDA up to retest resistance at higher levels. The 30 analysts produced 11 updates that confirmed the consensus price target. The stock is pegged at a Moderate Buy with a price target that assumes fair value at current levels. The caveat is the same as with NVIDIA; the latest updates have the stock trading closer to $115 or about 25% above the current price action. Raymond James analyst Srini Pajjuri views the chip market as mixed with strengths and weaknesses depending on the end market. 

NVIDIA Broke Out: Will AMD Follow Suit 

The price action in NVIDIA has been textbook over the last 3 months. The stock moved down to a low, confirmed a bottom, traced out a Head & Shoulders pattern, and then broke out of it. This has the stock on track to reach new highs, and AMD is right behind. So far, this market has formed the Head & Shoulders bottom but has yet to confirm the reversal A move above the neckline near $100 would confirm the reversal and bring targets near $140 into play. 

Should you invest $1,000 in Advanced Micro Devices right now?

Before you consider Advanced Micro Devices, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Advanced Micro Devices wasn't on the list.

While Advanced Micro Devices currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.

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Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
NVIDIA (NVDA)
2.7406 of 5 stars
$398.55+5.3%0.04%207.58Moderate Buy$381.08
Advanced Micro Devices (AMD)
2.2522 of 5 stars
$120.16+1.6%N/A522.43Moderate Buy$97.17
Advanced Micro Devices (AMD)
2.2522 of 5 stars
$120.16+1.6%N/A522.43Moderate Buy$97.17
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Thomas Hughes

About Thomas Hughes

Contributing Author: Technical and Fundamental Analysis

Thomas got his start with the markets while working as a Chef. In 2005 a chance invitation to attend the seminar “How To Buy And Sell Your Own Stocks” altered his worldview. Soon trading and stocks consumed his every waking moment to the point of excluding all else. Thomas now enjoys a much different lifestyle engaged in his true passion, uncovering great investments.
Contact Thomas Hughes via email at tmhughes.writeon@gmail.com.
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