To The Moon

When it comes to chip stocks, there’s no shortage of possibilities out there. Recently, Citi took a look at the field and discovered that certain stocks called a lot more interest than others, noting that Nvidia (NASDAQ:NVDA), AMD (NASDAQ:AMD), and Microchip Technology (NASDAQ:MCHP) are helping to give the entire sector a boost.

Citigroup analystChristopher Danelyrevealed that there was a lot going on under the hood in this sector. While investor sentiment for the chip market is doing a little better than even, individual names are certainly calling a lot more attention than others. In fact, it looks like a few big names are doing a lot of the heavy lifting in keeping this sector afloat. Danely himself noted that “…there is a lot of FOMO (fear of missing out) out there…” However, he believes that there is at least some excess optimism in the field too.

This has a certain point to it; after all, Danely noted, several chipmakers—like Texas Instruments (NASDAQ:TXN) and ON Semiconductor (NASDAQ:ON)—were connected to industrial markets and recently saw losses. The sheer diversity of the chip market, as chipmakers sell into everything from home appliances to cars to data centers, might fuel some of that optimism.

Meanwhile, the popularity of such stocks only goes so far in their outcome. Currently, Texas Instruments has 5.66% upside potential thanks to its average price target of $184.94.Microchip, meanwhile,offers 20.35% upside potential thanks to its average price target of $98.30. Both, however,are considered Moderate Buys by analyst consensus.

source:tipranks