KeyBanc names NVDA as one of its top ideas for 2023 – Crypto News – Crypto News
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NVDA strongly biased to downside ahead of Q2 results NVDA strongly biased to downside ahead of Q2 results

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KeyBanc names NVDA as one of its top ideas for 2023 – Crypto News

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2 years ago

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  • KeyBanc listed Nvidia as a top pick for 2023.
  • Ssemiconductors are expected to lose 4% of non-memory revenue compared to 2022.
  • Much of the semiconductor weakness appears in the first half of 2023.
  • AMD and Qualcomm are also expected to benefit from late 2023 improvements.

Nvidia (NVDA) was named one of KeyBanc Capital Markets’ top ideas in the semiconductor industry for 2023 on Thursday. Although the investment bank has a generally negative outlook on the overall semiconductor industry for the year, a note to clients provided several reasons why specific shares could benefit and looked relatively attractive.

Nvidia stock news: KeyBanc likes leading products

When the memory segment is cut out of the 2023 OutlookKeyBanc expects that semiconductor revenue will drop about 4% from 2022 levels. That’s not a major positive for the industry of course, but KeyBanc analyst John Vinh thinks the pullback will mostly affect the first half of the year before a general amelioration in the latter half.

“Despite a significant pullback (-36%) in the SOX in 2022, we continue to see a soft landing scenario for the semis,” said Vinh. SOX refers to the Philadelphia Semiconductors Index.

Vinh argued in his note to clients that there was now better clarity concerning backlog orders and that prices for chips are expected to rise in the back half of 2023. He also said that because price-to-earnings levels for most major stocks in the Philadelphia Semiconductors Index had more than halved from their peak, much of the bad news The concerning slowing demand had been priced into major stocks like Nvidia.

One major reason for overall optimism, according to KeyBanc, is that demand from automotive, AI applications, data centers and the cloud would partially offset the weakness seen since last year in the PC and smartphone segment.

KeyBanc thinks that CEO Jensen Huang’s Nvidia will likely benefit despite overall weakness in semis due to its new fleet of RTX40 graphics cards and the AI-leading GPU Hopper architecture. Additionally, the note wrote positively about Advanced Micro Devices (AMD) and Qualcomm (QCOM) – two other leading fabless semi designers.

Nvidia stock forecast

Nvidia stock is descending on Thursday for the second session in a row. NVDA stock may have hit its range high on Tuesday and Wednesday when it met resistance around $177. A drop below the 9-day moving average near $164 would confirm that a longer-term sell-off is in motion. The mid-week high was well below the $187.90 range high from December 13, which would seem to signify that another bull run is off the table. In neither range high was the supply zone between $190 and $193 reached – a welcome sign for bears.

Now that the charts Points lower, bulls will look for better entry points. $140 is the clearest nearby support level and will serve well around the new year. Then there is the $110 to $120 demand zone. If the market tanks and the sell-off reaches into the semiconductor space, then expect NVDA to drop all the way to that support zone.

NVDA daily chart

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