Nvidia and Advanced Micro Devices (AMD) are two of the top semiconductor companies in the world, and they’re both strong buys for investors looking to capitalize on artificial intelligence (AI) trends, according to Raymond James.
The firm upgraded Nvidia from “market perform” to “outperform” with a price target of $650 per share. AMD was also upgraded from “underperform” to “market perform” with a price target of $90 per share.
Raymond James analyst Chris Caso said that AI is driving demand for GPUs, which should benefit both companies. He noted that Nvidia has been gaining market share in data centers while AMD has been making gains in gaming consoles and PCs.
Caso believes that Nvidia will continue to be the leader in data center GPU sales due to its superior technology and software stack, but he sees potential upside for AMD as well given its competitive pricing strategy and focus on gaming products.
He added that there could be further upside if AMD can gain traction in cloud computing or autonomous vehicles — two areas where it lags behind Nvidia significantly at present.
Raymond James expects both stocks to outperform over the next 12 months based on their respective strengths within AI-related markets such as machine learning, deep learning, robotics, computer vision and natural language processing (NLP). The firm also believes these sectors will remain attractive even after any short-term volatility subsides due to their long-term growth prospects.
In addition to upgrading both stocks today, Raymond James reiterated its bullish stance on them by saying they are well positioned for continued success over the long term thanks largely due to their exposure within AI markets which have seen significant growth recently driven by increased investment into research & development efforts across multiple industries including healthcare & finance among others . Furthermore , this trend is expected continue going forward as more businesses look towards leveraging advanced technologies like machine learning , deep learning , robotics , computer vision & NLP .
As such , investing into either company would provide investors with an opportunity not only capitalize off current trends but also benefit from future developments related AI . Moreover , since each company offers different advantages when it comes product offerings – NVIDIA being stronger data centers while AMD having better pricing strategies & focusing more gaming products – investors may want consider diversifying portfolio between them order maximize returns .
Overall , NVIDIA & Advanced Micro Devices offer great opportunities those looking invest Artificial Intelligence related markets . With Raymond James giving positive outlooks regarding performance of each stock over next twelve months along clear indications future growth potentials associated industry – now might perfect time take advantage what these companies have offer before prices start rise again .