Chip Gear Makers Get Price-Target Hikes; AMD Lifted By Intel Deal – Investor's Business Daily

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Chip gear makers Applied Materials (AMAT) and Lam Research (LRCX) received stock price-target increases on Tuesday, while chip designer Advanced Micro Devices (AMD) saw its shares rise on a report of a tech licensing deal with chipmaker Intel (INTC).

Applied Materials, Lam Research Hiked

UBS analyst Stephen Chin reiterated buy ratings on Applied Materials and Lam Research on Tuesday. He raised his price target on Applied to 51 from 44 and on Lam to 180 from 158.

Susquehanna Financial Group analyst Mehdi Hosseini maintained his neutral rating on Applied on Tuesday, but upped his price target to 40 from 35.

Applied ended the day up 1.7% to close at 45.07 on the stock market today, a record high.

Lam closed up 0.9% to 152.56 on Tuesday, another record high.

Chin has increased confidence in prospects for Applied and Lam in China after seeing evidence that two of China’s five announced indigenous memory chip fabs are well into the construction phase.


IBD’S TAKE: The IBD 50 list of top-performing growth stocks includes eight chip-industry companies including Applied Materials and Lam Research.


AMD Gets Boost From Intel Deal

AMD stock jumped 11.7% to close at 12.75 Tuesday after tech site Fudzilla reported that Intel has agreed to license AMD’s graphics chip technology after its deal with Nvidia (NVDA) expired.

Nvidia stock ignored the news, rising to a record of 137.44 intraday Tuesday. It was up 1.9% to end the regular trading session at 136.81.

Rosenblatt Securities analyst Hans Mosesmann said Intel licensing AMD’s graphics chip technology would not be a good sign for Intel.

“We believe Intel is in organizational turmoil trying to adjust to Nvidia’s AI momentum in the data center, AMD’s sudden relevance in x86 CPUs, and the digestion of various questionable acquisitions,” Mosesmann said. “Intel does not need more chaos and the Nvidia IP they have should suffice for now. If they do end up licensing AMD graphics IP then things may be worse at Intel than even we have believed.”

Mosesmann rates Intel stock as sell as AMD and Nvidia shares as buy.

Intel stock finished the trading day up 0.5% to 35.82.

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