AMD and Nvidia Stock reverse course after solid rally
Actions of Advanced micro-systems (AMD) and Nvidia (NVDA) withdrew on Thursday after skyrocketing a day earlier clinging to positive research from Wall Street analysts. AMD stock is back in the buy range.
AMD and NVDA surged on Wednesday as KeyBanc Capital Markets analyst John Vinh told clients in a note that demand for cloud computing services was strong, a positive for both companies. In addition, Deutsche Bank analyst Ross Seymore on Wednesday raised his target for AMD stock price to 120 from 113, but maintained a maintenance rating.
Seymore said that 2021 “saw one of the strongest years of semiconductor industry revenue growth in recent memory as demand increased in virtually all end markets with supply being the primary driver. triggering even greater growth “.
Nvidia and AMD shares jumped from their 50-day lines on Wednesday, climbing 8% and 7.5% respectively. But Thursday turned out to be a tough day for tech stocks overall.
On Thursday, AMD stock fell 5.3% to 138.50 during the afternoon trading on the stock exchange today. This places AMD in a new area of purchasing range. The buy range on AMD shares is 134.20 to 147.62.
Nvidia stock fell 6.5% to 284.90.
AMD competes with Intelligence (INTC) in the manufacture of central processing units, or CPUs, for personal computers and servers. It also competes with Nvidia in the graphics processing unit, or GPU, market for PCs, game consoles, and data centers. Nvidia chips are also being used to power a future of self-driving cars and cloud gaming.
Nvidia and AMD are both stocks of the IBD rankings.
Please follow Brian Deagon on Twitter at @IBD_BDeagon to learn more about tech stocks, analysis and financial markets.
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