Analysts at Roth MKM initiated coverage of chip stocks Marvell Technology (NASDAQ:MRVL), AMD (NASDAQ:AMD) and onsemi (ON) at Buy in separate notes on Tuesday.
Starting with MRVL, analysts assigned the stock a $60 price target, stating they believe the company's "broad data-infrastructure-centric portfolio is well-positioned to benefit from high-performance data center infrastructure upgrades."
Analysts also said that large custom cloud programs serve as a potential catalyst for the stock. "We believe that MRVL is highly differentiated in its ability to develop custom SOC for its cloud customers that leverage its broad networking, storage, and compute capabilities," they added.
AMD, given a price target of $125 per share, has a "differentiated portfolio of high-performance compute/networking processors and accelerators," which represents a "strong investment opportunity," according to Roth MKM.
Analysts also said the company has strong leverage to AI infrastructure growth, and they expect the company's new MI300X to gain traction in the fast-growing market opportunity in generative AI acceleration.
Roth MKM believes ON, which was given a $75 per share price target, "represents a differentiated investment in automotive and industrial power semiconductors."
Analysts also noted that the company is levered to secular growth in automotive electrification and renewable energy.