Semiconductor Stocks AMD, Marvell Called Top Picks

Several Wall Street analysts on Monday made their picks for top semiconductor stocks in 2022. The chip stocks included Advanced Micro Devices (AMD), Marvell Technology (MRVL) and Wolfspeed (WOLF).

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Goldman Sachs analyst Toshiya Hari named AMD and Marvell as two top semiconductor stocks for 2022.

In a note to clients, Hari said he likes AMD for its growing market share, gross margins and earnings. He sees “significant upside” for AMD relative to Wall Street’s consensus estimates.

In particular, many analysts underappreciate AMD’s gains in server processors for cloud and enterprise customers, he said.

AMD Stock On Conviction Buy List

“Similar to the last few years, we expect positive earnings revisions to drive the stock higher as we progress through the year,” Hari wrote.

Hari put AMD stock on his Conviction Buy List with a price target of 170.

On the stock market today, AMD stock rose 4.4% to 150.24.

Semiconductor Stocks: Marvell Called Top Pick

Hari also likes Marvell stock. He believes its long-term growth, led by cloud computing, 5G infrastructure and automotive, is “not fully priced in.”

He has a price target on Marvell stock of 98. Marvell stock advanced 2.2% to 89.43 on Monday.

“With about 80% of revenue rooted in cloud, enterprise, and communications infrastructure, we expect the stock’s valuation premium to hold and for the company to grow revenues and expand profits at a healthy clip into its multiple,” Hari said.

Wolfspeed Stock Upgraded To Buy

Meanwhile, Piper Sandler analyst Harsh Kumar named chipmaker Wolfspeed as a “top secular idea for 2022” among semiconductor stocks.

On Monday, Kumar upgraded Wolfspeed stock to overweight, or buy, from neutral. He raised his price target to 160 from 125.

Wolfspeed stock jumped 8.4% to 121.14.

In a note to clients, Kumar said Wolfspeed should benefit from the ramp of electric-vehicle production worldwide.

Among other semiconductor stocks, he likes Broadcom (AVGO), Impinj (PI), Marvell, ON Semiconductor (ON), and Qualcomm (QCOM).

Meanwhile, Citigroup on Monday reiterated its buy ratings on several semiconductor stocks. They include Marvell, Micron Technology (MU) and Nvidia (NVDA).

Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

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