NVIDIA (NVDA) and AMD (AMD) Likely to Benefit from Low Inventories and Extended Cycle - BofA Securities

November 26, 2021 8:31 AM EST
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Price: $179.26 +5.60%

Rating Summary:
    34 Buy, 17 Hold, 4 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 14 | Down: 23 | New: 12
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BofA Securities analyst Vivek Arya reiterated Buy ratings on NVIDIA (NASDAQ: NVDA) and Advanced Micro Devices, Inc. (NASDAQ: AMD) after updating the analyst's tracker for PC gaming, low-end PC, game consoles, and cryptocurrency mining. Despite supply improvements, retail inventories are still at or near record low levels with additional stock sold through within hours of arrival, implying overall inventory is lower than last quarter.

The analyst believes this implies that the cycle could be extended, stating "We expect supply could remain constrained through the 1H 2022 as demand continues to be robust and supply continues to be unable to keep up. This in our view could drive stronger for longer sales growth, and we now expect 2022 dGPU market can grow 9% YoY (vs. 5% prior) including 17% growth in PC gaming (vs. 13% prior). We maintain our Buys and top compute picks on NVDA (gaming leader with unique accelerated computing franchise that can address a broad range of growth opptys) and AMD (solid roadmap/potential for CPU share gains)."

For an analyst ratings summary and ratings history on NVIDIA click here. For more ratings news on NVIDIA click here.

Shares of NVIDIA closed at $326.74 yesterday.

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