Rising Stocks: Nvidia and AMD Shares Surge on AI Chip Demand Optimism – Jan. 17, 2024

2024-01-17 05:02:44

International news 11:50 a.m. 2024-01-17

Nvidia shares, which is the world’s largest chip maker from the United States. and Advanced Micro Devices (AMD), a U.S. multinational semiconductor chip company. rose on Tuesday (Jan. 16) due to optimism among investors about the possibility that demand for chips used to power artificial intelligence (AI) will increase. This has encouraged Wall Street analysts to increase their stock price targets for major semiconductor chip companies listed on US stock exchanges.

Tom O’Malley and other Barclays analysts noted that Nvidia currently holds a large share of the advanced AI chip market, but AMD is likely to take over this year as AMD increases its Delivering chips to enterprise customers

“Due to the shortage of supply Customers are therefore likely to purchase all Nvidia products in order to get their hands on AI chips early,” Barclays analysts wrote. He added that 2024 is the year that AI will begin to open up more. This is because other chip makers such as AMD will gain more market share.

Nvidia shares rose 3% to $563.65 per share on Tuesday. That’s the highest level on record. AMD shares closed up 8.31% to US$158.74 per share. That’s the highest level in more than two years, with Nvidia’s stock value increasing more than threefold in the past year. Making it the world’s largest chipmaker with market capitalization, AMD shares have more than doubled in the past year.

Barclays raised its price target on AMD shares to US$200 per share from US$120 per share. Analysts at KeyBanc increased their price target on AMD shares from US$170 per share to US$195 per share. and raised the Nvidia stock price target from 650 USD to 740 USD.

Nvidia and AMD stocks are currently among the biggest gainers on the PHLX semiconductor chip index, with the index up 1.15% in yesterday’s trading.

By InfoQuest News Agency (17 Jan. ’24)

Tags: Nvidia, United States, India, Advance Micro Devices
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