AMD, Nvidia, and 2 More Chip Stocks to Buy for 2023, According to an Analyst

Text size

Mizuho says there are number of semiconductor stocks that offer buying opportunities for solid gains this year.

In a note to clients on Wednesday, analyst Vijay Rakesh recommended

Advanced Micro Devices

(ticker:

AMD

),

Nvidia

(NVDA),

Qualcomm

(

QCOM

) and

Broadcom

(AVGO) as his top ideas for 2023. He has a Buy rating on all the companies.

The analyst has a $95 price target for AMD stock and a target of $200 for

Nvidia
,
while Qualcomm’s target is $150. For

Broadcom
,
his stock price forecast is $700.

Rakesh noted over last two decades the semiconductor sector has declined in consecutive years only twice. The

iShares Semiconductor

(ticker: SOXX) exchange-traded fund, which tracks the performance of the ICE Semiconductor Index, dived 35% last year.

In early trading Wednesday, AMD stock traded down 1.8% to $73.37; Nvidia shares fell by 2% to $188.75; Qualcomm stock declined 1.1% to $129.32; and Broadcom dropped 0.6% to $581.73.

---

Newsletter Sign-up

Review & Preview

Every weekday evening we highlight the consequential market news of the day and explain what’s likely to matter tomorrow.

---

For AMD, the analyst is optimistic about its data center server chip business and predicts it can outperform current expectations.

He is bullish on Nvidia’s market leadership in making chips that are used for artificial intelligence applications and expects its latest gaming graphics cards will sell well. Regarding Qualcomm, Rakesh sees the chip maker as a beneficiary from the eventual economic rebound in China.

Finally, Broadcom shares are attractive on the back of its high profit margins across its semiconductor and infrastructure software portfolio, says the analyst.

Write to Tae Kim at [email protected]