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Cowen has a $70 price target for Marvell Technology
Remusrigo/Dreamstime
It has been a rough year for chip stocks, but investors should look beyond short-term weakness.
Five semiconductor stocks now offer solid buying opportunities, according to
Cowen
analyst Matthew Ramsay.
“Macro-driven headwinds are well-documented but are being acutely felt in the PC/gaming market,” he wrote on Sunday. Long-term “secular growth vectors … remain intact with current entry points attractive for quality franchises.”
The analyst recommends
Nvidia
(ticker:
NVDA
),
AMD
),
MPWR
),
Marvell
Technology (
MRVL
), and
LSCC
) as each “represent compelling value after significant pullbacks.” He has an Outperform rating on all them.
Cowen has a $180 price target for Nvidia and a $100 target for AMD. For Monolithic, Marvell, and Lattice the targets are $600, $70, and $78, respectively.
In early trading Monday, shares of Nvidia fell 4% to $115.76; Advanced Micro Devices traded down 1.5% to $57.55; Monolithic fell 5% to $344.60, Marvell sank 5% to $40.20; and Lattice tumbled 3.7% to $49.44.
Ramsay said chip stocks are near all-time low valuations after their big drops this year. While macro concerns abound—including a slowdown for computer and smartphones sales, rising inflation and hawkish central banks—he is bullish long term on chip demand on the back of the growing end markets in data centers, high-end smartphones, and 5G infrastructure.
Last week, AMD said it would fall short of its financial forecasts for the September quarter, citing deteriorating demand for PCs. The news spooked the entire sector on Friday.
The
iShares Semiconductor
(SOXX) exchange-traded fund, which tracks the performance of the ICE Semiconductor Index, is down 42% this year after dropping 3.5% on Monday.
Write to Tae Kim at [email protected]
Source: https://www.barrons.com/articles/nvidia-amd-marvell-chip-stocks-buy-the-dip-51665423825?siteid=yhoof2&yptr=yahoo