🎈 Up Big Today: Find today's biggest gainers (some over 50%!) with our free screenerTry Stock Screener

Can Nvidia really be the only AI winner? Mizuho discusses

Published 04/06/2024, 15:38
Updated 04/06/2024, 15:41
© Reuters
NVDA
-
MU
-
AMD
-
TSM
-

Following the latest updates from Computex, Nvidia (NASDAQ:NVDA)'s stock surged 5% to close at a new all-time high. However, the broader semiconductor sector saw declines despite the positive news, prompting Mizuho analysts to question, “Can NVDA really be the only winner?”

Outside of TSMC and Micron (NASDAQ:MU), both of which are direct beneficiaries of Nvidia’s new GPU products set to be released in 2025 and 2026, nearly “the entire semi sector closed down on the day,” Mizuho highlighted. 

AMD (NASDAQ:AMD) shares, despite initially gaining 2-3% following the release of a detailed GPU product roadmap for its MI platform over the next two to three years, also ended the day down 2%. Arm Holdings ADR (NASDAQ:ARM) stock climbed 550 basis points, driven by bullish comments by its CEO at the Computex event. 

Still, the semiconductor sector is “starting to feel more and more narrow,” Mizuho noted.

“MRVL was not a good sign post their print, guide and stock down low teens in past 2 days,” they wrote. “Nothing terrible or really worrisome, but feeling toppy with some investor exhaustion for any stock not named NVDA and that actually feels a lot more driven by passive, quant and retail investors vs active managers chasing into a stock split to come.”

Mizuho analysts hiked their target price on Nvidia to $1,275 from $1,180 and lifted the revenue and earnings per share (EPS) estimates for the next few years. 

NVDA’s latest upswing to a new record high came after CEO Jensen Huang announced plans for the Blackwell Ultra chip in 2025 and the next-generation Rubin platform for 2026 over the weekend.

The company is set to complete its planned 10-for-1 stock split on Friday this week.



Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.