TSP Weekly Tech Stock Update—Jan 20, 2024
This Week: AMD hits new record high, NOW Q4 earnings preview, AAPL rebounds, a new NTNX bull, DDOG/ESTC/CRWD/GOOGL new 52-week highs, Microsoft expands 365 Copilot access, GTLB ups AI pricing & more.
Hello from Rob…
—Powered by AI optimism, shares of Advanced Micro Devices (AMD, $174.23) had a terrific week, jumping 18.9% and reaching a new record high of $174.25. The chipmaker now sports a market cap of $281 billion.
Barclays this week raised its AMD price target to $200 from $120, saying it sees the company achieving a $4-billion AI run rate exiting 2024, with expectations for over $7 billion in 2025. KeyBanc upped its AMD target to $195 from $170, noting a significant increase in demand for MI300X GPUs and saying the company’s AI exposure in 2024 could end up being double what buy-side investors are expecting. TD Cowen lifted it AMD target to $185 from $130, citing potential AI upside as the company is increasingly viewed as a capable alternative to NVIDIA (NVDA).
Hat tip to Cantor Fitzgerald’s bullish call on AMD from last September, when the stock was trading around $103.
AMD will report Q4 results on January 30.
—Following up on Arista Networks (ANET, $263.51) from last week’s issue, the stock this week rose 4.5% and hit a new all-time high of $265. KeyBanc raised its Arista price target to $287 from $232 because it sees higher demand this year from the company’s large cloud customers and looks for operating margin expansion to help drive 2024 EPS to $7.15 (the consensus estimate is $7.29). Arista will report Q4 result on February 14.
***Inside This Issue: A Promising AI Semiconductor Stock To Watch
—Paid subscribers will receive the February 2024 PDF of Tech-Stock Prospector (TSP #264) via email on Tuesday, February 13.
—Paid subscribers have access to the TSP Market Overview and TSP Portfolio Updates sections inside this issue.