Stocks of notable chipmakers Nvidia and Advanced Micro Devices (AMD) have plunged in recent weeks after reaching their all-time highs earlier this year. According to analysts from investment bank Piper Sandler, this offers a “tremendous opportunity” for investors to add chip stocks to their portfolios.
Piper Sandler analysts remain bullish on the stocks of Nvidia and AMD thanks to their position as the biggest players in the recent artificial intelligence (frenzy). They believe both semiconductor companies are poised for big gains in the future.
Nvidia is currently working on a next-generation AI chip, Blackwell, that is expected to further fuel the demand for its products.
“Fundamentally, NVDA remains the strongest player in the AI accelerator space,” Piper Sandler’s Harsh Kumar wrote in a research note on Wednesday. “We also believe that strong tailwinds from the Blackwell architecture coming in October will continue to drive revenues well into 2025 as demand exceeds supply.”
On the other hand, Piper Sandler views AMD as the “top pick” for investors looking to get into AI. They expect the company to gain an even bigger share of the market in the future and might benefit if Nvidia ends up delaying Blackwell, as rumored.
Despite Piper Sandler’s optimistic projection, the shares of Nvidia dipped by 5.08% on Monday. The stock still remains 105.42% up year-to-date.
AMD’s stock, on the other hand, closed 1.16% down after a series of gains and losses throughout the day. It is now 7.15% down year-to-date.
