3 Chip Stocks Boosted By Analyst Attention

Advanced Micro Devices shares have been on fire since slipping into single digits in early May

Jul 10, 2017 at 10:03 AM
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Analysts are weighing in on chip stocks Advanced Micro Devices, Inc. (NASDAQ:AMD), NVIDIA Corporation (NASDAQ:NVDA), and Xilinx, Inc. (NASDAQ:XLNX). Here's a quick roundup of today's bullish brokerage notes on shares of AMD, NVDA, and XLNX.

AMD Stock Higher on Bullish Mizuho Outlook

Advanced Micro Devices shares are trading up 1.3% at $13.53, with the tech stock extending last week's rally. Boosting the shares is an upwardly revised price target to $15 from $14 at Mizuho, territory last charted by AMD shares on March 1. Nevertheless, the security is up more than 37% since slipping into single digits in early May.

A bigger surge could have more analysts changing their tepid tune on AMD, too. Of the 19 brokerages covering the shares, 10 maintain a "hold" or "strong sell" rating, while the average 12-month price target heading into today's trading stands at $12.85.

Needham Sets Highest Price Target for NVDA Stock

Jefferies raised its price target on NVIDIA to $180 from $140, saying the shift toward a parallel computing method will leave the company with a "multi-year" competitive advantage against its peers. What's more, Needham boosted its price target on the stock to $200 from $130 -- the highest on Wall Street -- on big revenue expectations from the company's partnership with Toyota.

Against this backdrop, NVDA shares have surged 1.7% to trade at $149.31. After hitting an all-time peak of $168.50 on June 9, the semiconductor stock pulled back to the $140-$145 region, home to its previous highs and 40-day moving average. NVDA options traders have been bracing for a bigger retreat, though. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 10-day put/call volume ratio of 0.92 ranks 4 percentage points from a 52-week peak -- meaning puts have been bought to open over calls at a near-annual-high clip.

XLNX Stock Surge Could Spark a Short Squeeze

Jefferies' Mark Lipacis upgraded Xilinx stock to "buy" from "hold," raising its price target to $77 from $68 -- in uncharted territory. Mizuho also raised XLNX's price target to $68 from $64. These upgrades have lifted the semiconductor stock 2.5% to $65.35, back above its 50-day moving average. XLNX stock has been stair-stepping higher for the past year, touching a record high of $68.55 on June 9.

A short squeeze could add fuel to Xilinx stock's fire, too. Short interest skyrocketed more than 50% during the most recent reporting period, and now represents nearly 11% of the equity's total available float. At XLNX's average pace of trading, it would take about eight days to buy back these bearish bets.

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