tiprankstipranks
These Are the Top 2 Stocks from Five-Star Analyst Matt Ramsay
Stock Analysis & Ideas

These Are the Top 2 Stocks from Five-Star Analyst Matt Ramsay

Story Highlights

The unnerving market scenario is unsettling the investor’s appetite. At such times, following the advice of experts can provide comfort to jittery investors. Here are two top well-researched picks from five-star analyst Matt Ramsay.

Semiconductor stocks are currently witnessing a slump in demand owing to the slowdown in demand for end-use products. Plus, the peak demand during the pandemic and supply chain constraints forced many companies to overstock the chips in the expectation of robust future demand. This has resulted in companies giving a dull outlook for the near term. Nevertheless, a few of TipRanks’ Top Experts believe that the chip market is going to witness a huge surge in demand in the coming years, which well positions the players for an exponential upward trajectory.

Today in our “Expert Spotlight,” we will look at the well-researched top two picks of five-star analyst Matthew Ramsay, aka Matt Ramsay.

Ramsay is the Managing Director and Senior Research Analyst at the renowned research firm, Cowen & Co.

Ramsay initially worked as a senior design engineer at leading semiconductor manufacturers, including Advanced Micro Devices (AMD), Sun Microsystems, and Spansion. No wonder the five-star analyst is an expert in tracking the semiconductor sector for both the U.S. and the U.K. markets.

Ramsay’s Rank on TipRanks’ Experts List

According to the TipRanks Star Ranking system, Ramsay ranks #11 out of the 7,907 analysts in its universe. Furthermore, out of the 20,502 experts tracked overall, Ramsay holds the #22 position.

Remarkably, Ramsay has had a success rate of 66% with an average return of 28.7% over the past year. Moreover, his calls have generated an alpha of 17.1% and 9.6% over the S&P 500 (SPX) and the technology sector, respectively, during the same period.

As seen from the majority of his calls, Ramsay is highly optimistic about the technology sector, with 78% of his recommendations having Buy ratings and 22% with Hold ratings.

Nvidia Corporation (NVDA)

Nvidia is undoubtedly one of the biggest players in the semiconductor market, with a focus on graphics processor units (GPUs), chipsets, and related multimedia software. NVDA stock has already halved in value so far this year owing to the slowing demand for computers, smartphones, and gaming consoles.

To date, Ramsay’s most profitable Buy call was on Nvidia between the periods of January 12, 2016, and January 12, 2017, which generated a humongous 246% return.

Ramsay is particularly encouraged by Nvidia’s foothold in the hardware and artificial intelligence (AI) space. The analyst has a Buy rating on the NVDA stock with a price target of $265, which implies 77.1% upside potential to current levels.

The rest of the Street resonates with a highly optimistic view on NVDA stock, with a Strong Buy consensus rating based on 26 Buys and four Holds. The average Nvidia price target of $262.41 implies 75.4% upside potential to current levels.

Despite the ongoing macroeconomic headwinds, Nvidia has been able to consistently outperform Wall Street expectations. The company is scheduled to report its third quarter fiscal 2023 earnings on August 24. The consensus for earnings per share (EPS) is pegged at $1.25.

Since 2016, Ramsay has maintained a consistent Buy rating on NVDA stock with a success rate of 83% and generated a massive average return per rating of 101.2%.

Lattice Semiconductor (LSCC)

Oregon-based Lattice Semiconductor specializes in the design and manufacturing of low-power, field-programmable gate arrays (FPGAs). LSCC stock has lost 42% so far this year, amid the broader tech sell-off, despite consistent earnings outperformance.

Its second quarter fiscal 2022 earnings are scheduled for August 2, with a consensus for earnings per share (EPS) of $0.40.

LSCC currently has a market capitalization of $6.27 billion and remains Ramsay’s top small-mid cap pick for 2022. Ramsay believes that LSCC’s low-power and increasingly mid-market FPGAs are in the nascent stage of demand, which strongly positions the company to succeed with growing opportunities.

Moreover, the analyst believes that LSCC is well shielded against the macro headwinds due to its secular growth and competitive dynamics. Ramsay has a Buy rating on the stock with a price target of $75, which implies 64.7% upside potential.

The rest of the Street is cautiously optimistic about LSCC stock with a Moderate Buy consensus rating based on five Buys and two Holds. The average Lattice Semiconductor price target of $71.14 implies 56.3% upside potential to current levels.

Ramsay has consistently recommended a Buy rating on LSCC stock since 2019 and has generated a whopping 60.9% average profit per stock with a success rate of 85%.

Ending Thoughts

The semiconductor sector is set to witness outstanding growth following the current dampening of demand. Five-star analyst Ramsay also has tremendous belief in the sector’s outperformance. With a fabulous track record of generating huge returns, investors could follow Ramsay’s convictions to make informed investment choices.

Disclosure

Trending

Name
Price
Price Change
S&P 500
Dow Jones
Nasdaq 100
Bitcoin

Popular Articles