From Barron’s: 2024-05-06 10:43:00

Nvidia stock rose 1.6% on Monday, driven by confidence in potential interest-rate cuts from the Fed. Analysts suggest AMD may be a better play for AI chips. Both Intel and AMD shares were up 1.5% and 0.6%, respectively.

AMD shares dropped after earnings, but analysts see potential in the second half of the year. Target prices for Nvidia and AMD stocks show potential gains of 26% and 37%, respectively. Analysts are optimistic about AMD’s future growth potential.

On a price-to-earnings basis, AMD and Nvidia stocks are comparable. Nvidia shares have risen 79% this year, while AMD shares are up 2.2%. Both outperformed the S&P 500 and Nasdaq Composite indexes, with the S&P 500 rising 7.5% and the Nasdaq rising 7.6%.



Read more at Barron’s: Nvidia Stock Rises. Why AMD Might Be a More Tempting AI Chip Bet.