The chip shortage that plagued most of 2022 may be coming to an end, and the chip sector is showing a lot of extra life. Led by gains from Nvidia (NASDAQ:NVDA), several stocks throughout the sector are on the rise. Nvidia’s gains, meanwhile, stemmed from one key development: a set of new bargain-priced chips about to hit the market.
The latest Nvidia chips that sparked a renaissance in the chip sector today are known as the GeForce RTX 4060 set. This includes the RTX 4060 Ti 8GB, which will be available starting at $399. The RTX 4060 Ti by itself, meanwhile, will debut at $299. That’s a $30 discount over the RTX 3060’s price when it was first released, something of a step forward for the entire line. Meanwhile, in July, the RTX 4060 Ti 16GB is expected to arrive and will sell at $499.
While Nvidia led the way in gains today, it also created a halo effect that sent other chip stocks higher. Micron (NASDAQ:MU), for example, added just over 4% in its Thursday trading. Taiwan Semiconductor (NASDAQ:TSM) and Intel (NASDAQ:INTC) added almost exactly the same amount at one point, with both up just over 2%. Lesser-known chip brand Wolfspeed (NYSE:WOLF), meanwhile, added over 1.5% thanks to some positive coverage from Jefferies, whose analyst Natalia Winkler noted that Wolfspeed had an excellent position in the “silicon carbide market.”
Interestingly, though Nvidia was the biggest gainer today, it also represents something of a risk to shareholders. While it’s considered a Strong Buy by analyst consensus, it also boasts 6.92% downside risk thanks to its average price target of $294.50. Meanwhile, little Wolfspeed, who may never land a premium valuation, may only be a Moderate Buy, but it also offers the biggest upside potential of 54.32% thanks to its average price target of $65.88.
