Technology Stocks: Potential Buying Opportunity Emerges
Recent price declines in numerous technology companies, including semiconductor giants NVIDIA and Advanced Micro Devices (AMD), have raised concerns. However, analysts suggest this could present a favorable buying opportunity for investors.
Technology Stock Losses
Chip company stocks have been under pressure recently, experiencing a global sale this week. This decline affected prominent AI stocks like NVIDIA and AMD, with shares dropping by 24.71% and 27.35%, respectively, over the past month. While NVIDIA shares have gained 99.73% year-to-date, AMD shares have lost 12.71% during the same period.
Piper Sandler’s Positive Outlook
Analysts at Piper Sandler believe this price drop offers a “great opportunity” to buy these shares at a cheaper price. They anticipate continued strong performance from chip makers, fueled by the hype surrounding artificial intelligence.
Analysts Remain Bullish on NVIDIA and AMD
Despite recent losses, Wall Street analysts remain optimistic about both NVIDIA and AMD. For NVIDIA, 37 out of 41 analysts recommend buying the stock, with a price target 45.76% above the current price. Similarly, 25 out of 31 analysts suggest buying AMD stock, with a potential upside of 48.15%.
Market Reaction
Following their recent declines, both NVIDIA and AMD shares experienced a slight rebound on Thursday. NVIDIA shares rose 3.02%, while AMD shares climbed 3.98%.