To The Moon

In the midst of $NVIDIA Corp(NVDA)$ and $Advanced Micro Devices(AMD)$ continually setting new stock price highs, Wall Street remains optimistic about their upward trajectory.

On Tuesday, Wall Street analysts raised the target prices for these chip giants, signaling sustained optimism regarding the demand for AI chips.

Key Highlights:

1. Ongoing Surge: Despite both $NVIDIA Corp(NVDA)$ and $Advanced Micro Devices(AMD)$ experiencing a consistent surge in stock prices over the past year, Wall Street continues to bet on their upward trajectory.

2. AMD Targets: Barclays increased $Advanced Micro Devices(AMD)$ 's target price from $120 to $200, anticipating a potential 26% upside. KeyBanc raised AMD's target from $170 to $195.

3. NVIDIA Targets: KeyBanc also increased $NVIDIA Corp(NVDA)$ 's target from $650 to $740. NVIDIA's stock hit a historic high of $563.82 on Tuesday.

4. 2023 Performance: Fueled by the AI boom, both NVIDIA and AMD saw remarkable gains in 2023, with 239.24% and 127.59% increases, respectively.

5. 2024 Performance: Despite a pause in the broader market's upward trend in the first half of January, both NVIDIA and AMD maintained robust stock prices, showing gains of 13.85% and 7.69%, respectively.

6. Analyst Predictions: The median target price for NVIDIA is currently $625, slightly lower than a month ago. For AMD, the median target is $145, higher than the previous $130. Analysts collectively recommend a "Buy" for both stocks.

7. AI Chip Market Opening: Barclays analysts foresee AMD gaining market share in the advanced AI chip market as it delivers more in-house chips to enterprise clients. They predict 2024 to be the year the AI market begins to open up with contributions from various chip manufacturers.

8. AMD's MI300 Series: With AMD's recent release of the MI300 series AI chips challenging NVIDIA's dominance, analysts anticipate AMD gaining traction. The MI300 series, outperforming NVIDIA's H100, has secured orders from major players like Microsoft, Oracle, Meta, and OpenAI.

9. Market Outlook: As supply constraints lead customers to utilize entire NVIDIA platforms for priority delivery, analysts anticipate a more open AI market in 2024 as other chip manufacturers, including AMD, gain market share.

In summary, Wall Street's heightened target prices reflect continued confidence in the AI chip demand, with both NVIDIA and AMD poised for potential growth in 2024.