Chip Prices Are Plunging. What It Means for Nvidia, Intel, and AMD Stock.

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Susquehanna is getting less bullish about three chip stocks.

On Wednesday, semiconductor analyst Christopher Rolland lowered his price targets for

Nvidia

(ticker:

NVDA

) stock to $220 from $260,

Advanced Micro Devices

(

AMD

) stock to $120 from $140, and

Intel

(

INTC

) stock to $42 from $50, citing weakening demand for computers and PC graphics cards.

“We remain cautious on the PC market into second-half 2022, supported by disappointing ODM [original design manufacturers] builds, soft channel checks, building PC inventories, and lowered pricing,” Rolland wrote.

The analyst reaffirmed his Positive ratings on Nvidia and AMD, and also reiterated his Neutral rating on Intel.

Earlier this week, research firm IDC said worldwide shipments for personal computers fell 15% in the June quarter from a year earlier, the result of a more-difficult macro environment and supply-chain challenges.

And the graphics-cards business may be deteriorating worse than the computer market. “Aftermarket retail GPU pricing continues to collapse,” Rolland said.

The analyst noted how pricing for graphics cards fell by about 20% in the June quarter from the March quarter due to rising inventories, lower cryptocurrency prices, and concerns about Ethereum’s upcoming migration from a “proof-of-work” model to “proof-of-stake,” which will negate the need for graphics cards for mining.

Intel, AMD, and Nvidia declined to comment on the analyst report.

On Wednesday, Intel shares fell 0.6% to $37, while Nvidia shares rose 0.7% to $151.84 and AMD stock traded up 2.8% to $78.49.

Write to Tae Kim at [email protected]