Yahoo Finance’s Dan Howley breaks down a Wells Fargo report that named chip makers Nvidia and AMD the top tech picks for this year.
Video Transcript
[AUDIO LOGO]
DAN HOWLEY: I want to hit my pick for the day and that’s Nvidia. This stock has been absolutely hammered over the past year. The last 12 months, it’s down nearly 45%. A little more.
But today, it’s actually having a good day. Up around 6%, I believe. Basically, what’s going on here is it got a top pick from Wells Fargo, as well as Credit Suisse. Both of them in different ways.
Wells Fargo is looking at the data center business for the company, essentially saying that they expect to see that kind of get increased in 2023. While Credit Suisse is looking at the gaming side seeing increases. It’s worth pointing out that Wells Fargo also added AMD to its top pick list.
Look, Nvidia has a huge market when it comes to the data center business. It’s beating out the gaming business by a mile at this point, especially as we saw the gaming business get hurt because of those rough comparisons between 2020, 2021, and then 2022. The gaming industry just suffered massively as a result.
But we’re starting to come around on those comparisons. We should start to see it rebound in 2023. And I think that’s really what these companies are looking at.
DAVE BRIGGS: And AMD, Dan, also up about 6%, perhaps, on this same news. It was last month the UBS picked AMD, Nvidia, and Micron, top semiconductor stocks for ’23. But Citi also out with a note most recently saying they expect semi sales down 10% in the quarter. That’s up from their previous prediction of 7%. So the news has been mixed, if anything.
And we thought that CHIPS Act was going to be a real catalyst for the whole industry. Really has turned out to be anything but. But perhaps in the long run, they’ll be right here.
Add Comment