Mizuho says there are several 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
(AVGO) as his top ideas for 2023. He has a buy rating on all companies.
The analyst has a $95 price target and a $200 target for AMD stock
While Qualcomm’s target is $150. for the
His stock price forecast is $700.
Rakesh noted that the semiconductor sector has declined only twice in a row in the past two decades. The
The (ticker: SOXX) exchange-traded fund, which tracks the performance of the ICE Semiconductor Index, fell 35% last year.
In early trading Wednesday, AMD stock traded down 1.8% to $73.37; Nvidia shares fell 2% to $188.75; Qualcomm stock fell 1.1% to $129.32; And Broadcom fell 0.6% to $581.73.
For AMD, the analyst is optimistic about its data center server chip business and predicts that it can outperform current expectations.
He is excited about Nvidia’s market leadership in making chips used for artificial intelligence applications and expects its latest gaming graphics cards to sell well. As for Qualcomm, Rakesh sees the chip maker as a beneficiary from the economic revival in China.
Finally, Broadcom shares are attractive on the back of higher profit margins in its semiconductor and infrastructure software portfolios, analysts say.
Write to Tae Kim at [email protected]