US semiconductor boom: What’s next for Intel, Nvidia, AMD, Micron share prices?
The four largest US chip makers by market capitalisation are experiencing major stock price boosts. How will their chips align going into 2020?
Four major US semiconductor companies – namely Intel Corporation, Nvidia Corporation, Micron Technology Inc, and Advanced Micro Devices (AMD) Inc – remain as bullish as ever, as all four continue to see share prices rally.
Nvidia on Monday saw share price move up to a 13-month peak of US$227.71, in what has been six consecutive months of bullishness.
Micron Technology, too, saw share price hit a 15-month high of US$54.16 per share on the same day, the highest level since 08 June 2018.
Intel was able to enjoy a two-week high of US$57.92 per share on the week’s opening day, while AMD neared its all-time high when it hit US$49.23 on Tuesday, 17 December.
Where next for share prices?
According to Gov Capital, a stock forecast blog that uses a custom algorithm based on Deep Learning, Nvidia’s share price will continue to inch upward toward the US$240 mark as early as January 2020.
Separately, US independent investment bank Jefferies Group reaffirmed its ‘buy’ rating on Nvidia stock, also raising its share price target from US$250 to US$255.
For AMD, the future is also looking bright, as the company had recently released the critically-acclaimed Ryzen desktop processor update. Ryzen has enabled the company to overtake market leader Intel in sales in certain territories.
AMD share price has shot up US$14 to over US$42.50 per share in just two months, an increase of almost 50%. In October, the company was trading at US$28.23 per share.
Meanwhile, Intel on Monday announced it has acquired Habana Labs, an Israel-based developer of programmable deep learning accelerators for the data center, for approximately US$2 billion.
The acquisition bodes well for the world’s largest computer chip maker by market capitalisation in the long run, but as of Tuesday, 17 December, share price has declined over two percent from Monday’s high point, thanks to a drop in liquidity as a result of the deal.
Later today (18 December), Micron Technology is set to announce its quarterly results for Q1 for its 2020 fiscal year. Analysts polled by Bloomberg say the company should deliver adjusted earnings of US$0.47 per share on a revenue of US$5 billion, which would mark a growth over previous quarters.
Ahead of the report, Needham analyst Rajvindra Gill increased his price target on Micron shares by US$10 to US$70, while WedBush broker Matt Bryson revised his rating from ‘neutral’ to ‘outperform’
More boost from US-China trade compromise?
US President Donald Trump had signed an interim trade agreement to lower tariffs on Chinese goods by 50% on Friday, 13 December.
Following that, domestic market sentiment has improved exponentially, also evident by the upward share price movement of the wider technology sector.
The NASDAQ index, on which Intel, Nvidia, Micron, and AMD are all listed, grew 0.91% during Monday’s trade. On top of that, the Computer and Technology sector has grown 2.68% in the last one month alone, according to Zacks Equity Research.
Top market analysts say industries will continue to benefit from the trade compromise. Vincent Reinhart, chief economist at Bank of New York Mellon Corp, said last week that the interim trade deal ‘reverses some things that were bad’, namely the tariff increases, which is ‘good for the outlook’.
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