AMD (AMD) Tops KeyBanc's List of Semi Stocks to Own For 2022

January 21, 2022 8:46 AM EST
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KeyBanc analyst John Vinh expects to see another very strong year in the semiconductor industry.

The analyst is calling for revenue growth of 12% fueled by “broad-based end demand and healthy pricing, while key cyclical indicators, such as inventories, remain largely healthy.” He believes the cloud will remain a key growth driver for data center, while strengthening enterprise should be additive

“As there is likely to be peaking cyclical concerns, following three consecutive years of significant appreciation in the SOXX (+242% from 2019-2021), while a fourth year would be unprecedented, we recommend investors lean into more secularly focused names, but remain constructive on the broader cyclical stocks. We see semiconductor growth this year being punctuated by cloud data center, accelerating EV adoption in auto, industrial expansion, and continued rollouts of 5G globally,” Vinh said in a client note.

The analyst names 5 key ideas to own for 2022: AMD (NASDAQ: AMD), Marvel (NASDAQ: MRVL), On Semiconductor (NASDAQ: ON), Qualcomm (NASDAQ: QCOM), and Synaptics (NASDAQ: SYNA).

Vinh argues that AMD is “one of the most levered to cloud, while share gains (FB, MSFT) and increased capacity should drive outsized growth.” The analyst has a $155.00 per share price target on the stock.

AMD stock should benefit from the cloud growth and metaverse investments, Vinh added.

AMD stock price is down 1% in pre-market Friday.

By Senad Karaahmetovic | [email protected]

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