Wall Street analysts on Wednesday gave price-target increases to chipmakers Nvidia (NVDA) and Integrated Device Technology (IDTI), while upgrading Cypress Semiconductor (CY) to the equivalent of a buy rating.
Nvidia Stock Has Tailwinds
Mizuho Securities analyst Vijay Rakesh reiterated his buy rating on graphics-chip maker Nvidia and raised his price target to 170 from 145. Nvidia is in the IBD 50.
X Nvidia was up 0.3%, near 147, in morning trading on the stock market today. Nvidia broke out of a 13-week consolidation period with a buy point of 121.02 on May 10. It hit a record high of 168.50 on June 9.
"While Nvidia stock has had a nice rebound year-to-date, we believe there are incremental tailwinds into second-half 2017," Rakesh said in a note to clients.
The Santa Clara, Calif.-based company is starting to see traction for its DGX-1 supercomputer, launched in May, with leading players in artificial intelligence adopting the system, he said.
Nvidia also is getting a boost from cryptocurrency mining trends that are driving graphics processor unit sales. Plus, Nvidia is winning new business from automakers and auto-parts suppliers for self-driving car technology.
IDT Receives Price-Target Hike
Susquehanna Financial Group analyst Christopher Rolland maintained his positive rating on IDT stock, but increased his price target to 33 from 30.
IDT was up 2.9%, near 25, in early trading Wednesday.
The San Jose, Calif.-based company is likely to benefit from the ramp of Intel's (INTC) new Purley server chip platform, Rolland said.
"The transition to the Purley platform presents one of the most significant product-driven opportunities in the company's history, and one that is grossly underestimated by the market," Rolland said in a note to clients. IDT is likely to see 25%-plus content growth in Intel Purley-based servers, coupled with higher average selling prices for its chips.
"Furthermore, we understand that planned architectural changes for Intel's 2019-2020 server platform have the ability to drive content increases even larger than those in Purley," he said. "Indeed, this is a multiyear content story for IDT."
Cypress Upgraded On Apple Contract Wins
Barclays analyst Blayne Curtis upgraded Cypress Semiconductor to overweight from equal weight and raised his price target to 18 from 14.
Cypress stock was up 5%, near 13.85, in morning trading Wednesday.
Cypress has won chip business from Apple (AAPL) related to Apple's adoption of USB-C connectors for its charges in upcoming iPhones and iPads to enable fast charging, he said.
"This likely Apple win adds to a core business that remains strong, led by its (Internet of Things) products driving further operating leverage at one of the cheapest valuations in semis," Curtis said in a note to clients.
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