Sometimes, one stock doing particularly well in the market bodes well for others just like it. As Micron (NASDAQ:MU) shoots up, so are several other chip stocks. Intel (NASDAQ:INTC), Nvidia (NASDAQ:NVDA), and AMD (NASDAQ:AMD) are all gaining ground as Micron runs up.
Micron’s run-up came despite an earnings report that lost on just about every front. However, analysts came out in force to get behind it, noting that it was solidly positioned to take advantage of a turnaround. While macroeconomic forces are certainly working against it and other chipmakers, there’s a lot of room for improvement. The return of data centers and the rise of AI are giving chipmakers no shortage of opportunities. It’s impossible to run an AI, after all, without hardware.
There are certainly concerning signs but also optimistic signs. Just two weeks ago, Susquehanna analyst Christopher Rolland called for a “bottom” in the semiconductor market that should have prompted an overall chip stock spike. Rolland upgraded several chip stocks—Intel included—and noted that other chip markets should start turning around directly while some already did.
The recovery isn’t treating all chip stocks equally, however. Micron proves a big winner here, with 8.27% in upside potential thanks to a $68.61 price target. Analyst consensus calls it a Moderate Buy. However, Intel—merely a Hold by analyst consensus—boasts 11.46% downside risk, thanks to its $27.66 average price target.
