U.S. markets closed
  • S&P 500

    3,790.93
    +112.50 (+3.06%)
     
  • Dow 30

    30,316.32
    +825.43 (+2.80%)
     
  • Nasdaq

    11,176.41
    +360.97 (+3.34%)
     
  • Russell 2000

    1,768.81
    +59.94 (+3.51%)
     
  • Crude Oil

    86.24
    +2.61 (+3.12%)
     
  • Gold

    1,733.00
    +31.00 (+1.82%)
     
  • Silver

    21.06
    +0.47 (+2.29%)
     
  • EUR/USD

    0.9989
    +0.0162 (+1.65%)
     
  • 10-Yr Bond

    3.6170
    -0.0340 (-0.93%)
     
  • GBP/USD

    1.1471
    +0.0151 (+1.34%)
     
  • USD/JPY

    143.9930
    -0.6270 (-0.43%)
     
  • BTC-USD

    20,191.40
    +650.21 (+3.33%)
     
  • CMC Crypto 200

    458.05
    +12.61 (+2.83%)
     
  • FTSE 100

    7,086.46
    +177.70 (+2.57%)
     
  • Nikkei 225

    26,992.21
    +776.42 (+2.96%)
     

Nvidia Analyst Reverses Course A Week After China Ban Workaround Speculation

·2 min read
  • Mizuho analyst Vijay Rakesh lowered the price target on Nvidia Corp (NASDAQ: NVDA) to $205 from $225 and kept a Buy rating.

  • U.S. hyperscale "remains strong" into the end of 2022, with modest "pushbacks," but the first half of 2022 could see a potential slowdown.

  • He believes some hyperscalers could start to see a slowdown into the end of 2022 due to macro concerns.

  • His checks show hyperscale orders are seeing "pushbacks," but no cancels, with Q3 trending flat quarter-over-quarter and Q4 "potentially soft."

  • Rakesh said a Europe-China slowdown, Memory (DDR5), and PCIe Gen5 are key Server concerns as broad-based chip supply has improved considerably.

  • Rakesh maintained Advanced Micro Devices Inc (NASDAQ: AMD) with a Buy and cut the price target from $140 to $125.

  • Rakesh lowered estimates for AMD "with macro headwinds clouding the near-term outlook."

  • He sees the strength in Data Centers slowing and adverse effects from the ban on sales into China affecting both companies near term.

  • Longer-term, he still sees AMD and NVDA as well-positioned with the push for more excellent Cloud, HPC, and AI workloads.

  • Just a week ago U.S. restricted sales of Nvidia's high-performance AI chips for servers, the A100 and H100, to China and Russia, citing national security concerns.

  • The U.S. also urged AMD to stop exporting its MI250 chips to China. The chipmakers' share prices and the iShares Semiconductor ETF SOXX came under significant pressure on September 7 following the embargo.

  • However, Rakesh saw that the restriction could provide access, focusing on a workaround as a priority over the next few months.

  • Price Actions: NVDA shares traded lower by 1.68% at $129.08 on the last check Thursday. AMD shares traded lower by 1.20% at $76.52.

Latest Ratings for AMD

View More Analyst Ratings for AMD

View the Latest Analyst Ratings

See more from Benzinga

Don't miss real-time alerts on your stocks - join Benzinga Pro for free! Try the tool that will help you invest smarter, faster, and better.

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.