The semiconductor industry had a remarkable run in 2023, dominating the stock market and benefiting from the increasing demand for artificial intelligence (AI) and its diverse applications. While Nvidia has been considered the market leader in this space, there are analysts who believe that other semiconductor stocks present better investment opportunities, particularly Micron and AMD.
In terms of recent performance, Micron stands out. Its shares surged by approximately 75% in 2023, recovering from the previous year’s slump. Wells Fargo has named Micron as a top pick in the semiconductor sector, citing the continued growth of generative AI and a shift toward more cyclically-oriented companies in 2024. Analysts at Wells Fargo anticipate significant year-over-year upticks in the memory segment of the semiconductor industry for 2024 and 2025, which positions Micron for further success.
Another semiconductor stock to watch is AMD. Although its shares have experienced a slight decline since reaching a year-high at the end of 2023, this provides an attractive entry opportunity for investors. UBS has also identified AMD as a top chip pick for 2024, emphasizing that the entire industry is entering a “sweet spot” with a favorable inventory cycle and achievable revenue targets. Additionally, the expected decline in interest rates this year is predicted to drive an uptick in downstream demand, benefiting AMD’s results.
KeyCorp recently reiterated its bullish stance on AMD, reaffirming an Overweight rating and setting a fresh price target of $170. If achieved, this would mark a further upside of at least 25% and send AMD stock back to all-time highs.
While Nvidia has certainly delivered substantial gains in recent years, the changing near-term picture highlights the potential of alternative semiconductor stocks like Micron and AMD. As the industry continues to ride the wave of AI and other emerging technology trends, investors should closely monitor the prospects of these companies for 2024 and beyond.
The source of the article is from the blog lokale-komercyjne.pl