After a 165% surge this year, can Nvidia, the leading AI company, continue to lead the frenzy of American chip stocks? Wall Street analysts boldly predict that not only Nvidia can rise by another 1/5, but other components of the Philadelphia Semiconductor Index are also expected to follow suit.
In a recent report, Chris Rolland, an analyst at Susquehanna Bank, raised Nvidia's target stock price from $145 to $160, with a 21% increase in price compared to last Friday's closing price and a forward P/E ratio of 51.5 times.
Rolland states:
Although this valuation is much higher than the average level of peers by about 28.5 times, we believe it is reasonable because Nvidia can seize the opportunities of the booming terminal market.
Since the beginning of the year, Nvidia has risen by approximately 172%. FactSet data shows that although Rolland is optimistic that Nvidia's stock price may rise by 21%, his target price has now become the highest target price on FactSet. Although more than three-quarters of analysts hold a bullish rating for Nvidia's stock, the average target price of the stock is actually lower than last Friday's closing price, which may be due to some analysts not updating their forecasts. In the past month, Nvidia's stock price has soared by 40%, and many analysts have not yet had time to adjust their target price.
FactSet data also shows that looking at the entire Philadelphia Semiconductor Index constituent stocks, three stocks have at least 23% upward potential from the analyst's average target price.
These three stocks are Lattice, Rambus, and Intel, all of which are the losers in the stock market this year. Lattice has fallen by 13% since the beginning of the year, Rambus has fallen by 18%, and Intel has fallen by 39%.
From the perspective of ratings, analysts are optimistic about Lattice and Rambus, and according to FactSet data, 71% of analysts give& quot; Buy& quot; Or equivalent rating. The average target price given by analysts suggests that Lattice has 26% room for growth, while Rambus has 25%.
For Intel, analysts have more divergent views. Although the average target price suggests a 23% upward potential, only 28% of analysts are optimistic about the stock. Among the 47 analysts tracked, 13 gave a buy rating, 30 gave a neutral rating, and 4 gave a sell rating.