The chip sector saw a brief recovery last week after a large sell-off, with Nvidia (NVDA) once again leading the charge. Looking forward, chip stocks look to regain momentum after August volatility, but can they capture their previous heights?
KeyBanc Capital Markets Equity Research Analyst John Vinh joins Morning Brief to give insight into the chip sector and how semiconductor stocks may perform as Big Tech leans harder into AI.
"I think if you look at the sell-off over the last several weeks related to the chip sector, maybe more specifically to Nvidia, I think one, you had some concerns about maybe hyper scaler CapEx [capital expenditures] getting to kind of peak levels, but I think those were largely addressed later when you had comments coming out from Microsoft (MSFT) that it's still seeing phenomenal demand on the AI front, and it's actually supply-constrained," Vinh says. "The second factor is there's some concerns out there that its next-generation Blackwell product could be delayed. I wouldn't find that too surprising."
In terms of how the stock may perform, Vinh believes Nvidia will "beat and raise, we don't think near-term demand is going to be an issue at all."
Nvidia is scheduled to report second quarter earnings on Wednesday, August 28.
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9 сен 2024
