AMD shares higher NVDA pops: Cowen considers “new growth markets” as catalysts
- Cowen begins coverage on AMD
- Nvidia initiating outperform rating
- Strong growth trends in the chipmakers’ key markets.
We will consider adding to our initial position in OCT14C (.87 avg) using an ABCD pattern strategy pullback for best possible intraday entry.
AMD earnings have been stellar over recent quarters, representing +233% +200% and +999% change.
Cowen started a price target for AMD shares at $18, representing 40 percent upside to Thursday’s close.
We’d like to see RS line continue higher, currently rising at 65, as the chipmaker gains momentum.
Note analysts are ratcheting expectations considerably higher (left panel), 2018 +246% higher.
Cowen analysts also initiated coverage for Nvidia shares with an outperform rating, as the company will most likely be the dominant player in the artificial intelligence markets.
Cowen comments to clients on Thursday,
“While datacenter and gaming/crypto understandably garner the majority of investor focus, we believe NVIDIA’s auto computing business is on the cusp on significant high-margin growth,”
“In our view, no silicon company has the breadth of solutions and partnerships that NVIDIA has accumulated for end-to-end autonomous driving solutions … We view NVIDIA as the premier AI-driven growth story in semis and possibly the tech industry.”
Cowen also gave a price target of $325 for Nvidia shares, representing 31 percent upside to Thursday’s close.
We’ll add common to both positions today. Use the ABCD pattern for gauging strength and potential follow through during today’s session.
Happy Friday,
Vinny
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