Nvidia, Micron price targets raised at KeyBanc

KeyBanc raised its price target on Nvidia (NVDA) to $180 from $130 and on Micron (MU) to $165 from $160. The moves were part of a broader note on the state of the chip sector, with analyst John Vinh writing that “traditional server demand is actually improving” and “AI demand continues unabated.”

Yahoo Finance’s Brad Smith and Seana Smith discuss the note in the video above.

For more expert insight and the latest market action, click here to watch this full episode of Morning Brief.

This post was written by Stephanie Mikulich.

Video Transcript

We’re also watching semis this morning semiconductors analysts over at Key Bank, they boosted their price target on chip maker NVIDIA from 100 $30 to $180 over robust demand for its A I chips.

The firm also upped its price target on Mikron from $160 to $165 here.

It was really kind of a sweeping analysis of the broader chip segment here.

But you know, kind of coming back to what they were uh using as their me pathology talking about this cloud instance tracker and how they use.

This is essentially data analytics tracking the proliferation of semiconductor architectures by region based on instances available to purchase in the public cloud.

All that said they looked across A MD, NVIDIA, Google Amazon and others as well here trying to get some clues uh with correlation to how much these companies are spending and when within their various architectures, it will actually pay fruits for their business too.

Yeah, exactly.

I think this all just comes down to demand and, and they lay it out pretty just point blank in this reporting that the A I demand continues unabated that traditional server demand is actually improving.

You mentioned some of those uh larger cap tech names there.

The fact that the server supply chain feedback indicates that demand for traditional server demand continues to improve.

Most of that demand is from those us cloud providers that Brad was just mentioning.

But they also go on to say that they are also seeing sustained demand from China also moderating improving demand here within enterprise.

So all set up here for a bullish couple of quarters ahead of what potentially could be here for video.

When you take a look at the stock.

Yes, we have seen maybe some a bit of a reset, maybe in Wall Street expectations or exactly what current valuations are after that 10 for one stock split.

But again, the start just says it all year to date, we’re still looking at gains of nearly 160%.

And when you take a look at this momentum, it’s pretty much consensus on the street that a lot of this is not going to slow down any time soon after.

Story continues

Right.

Right.

And so the thesis largely remaining intact.

A slight ding because of some of the insider selling that took place.

But more largely the trend remains.

And especially with what Keybank is talking about here within the demand profile here, not seeing any signs of a demand pause as demand for H 100 remains robust.

They say