The coming financial reports from semiconductor companies may be a bit of a mixed bag, Barclays suggests. Blayne Curtis, one of its analysts, is banking on AI to light up the season, with Nvidia (NVDA) as the poster child. Curtis is predicting another big win for Nvidia, possibly revitalizing the AI sector. He expects increased spending in AI from major cloud service providers to strengthen the AI trend, complemented by a strong performance from Nvidia. As a result, Curtis increased his price target on Nvidia from $500 to $600. Unfortunately, Curtis isn’t as hopeful about the computing market. He’s expecting a bit of a slump due to a slowdown in server and PC markets, which could have a knock-on effect on AMD (AMD) and Intel (INTC).
On the other hand, Curtis isn’t expecting much from the optical market. However, he thinks AI might be the star player here, too, given the presence of Marvell Technology (MRVL). He’s also optimistic about the wafer fab equipment market, where he sees Camtek (CAMT) and Veeco Instruments (VECO) potentially reaping benefits from AI. However, he doesn’t seem to have much faith in the analog end markets, where Analog Devices (ADI) and Texas Instruments (TXN) hold court. He’s even less enthusiastic about the radio frequency market, where he downgraded Skyworks Solutions (SWKS). In his view, Skyworks isn’t showing any positive signs, and this lack of momentum, coupled with a weak Android market, might hurt Qualcomm (QCOM) as well.
What is the Nvidia Forecast?
Overall, analysts have a Strong Buy consensus rating on NVDA stock based on 31 Buys, two Holds, and one Sell assigned in the past three months, as indicated by the graphic above. Nevertheless, the average price target of $491.67 per share implies 6.87% upside potential.
