Analysts See Growth for Nvidia, Challenges for HP

Published on August 19, 2024, shares in the tech sector have surged, with notable gains exceeding 67% this year. Analysts remain optimistic about Taiwan Semiconductor Manufacturing Company (TSMC), predicting a 26% revenue increase and a 29% rise in earnings per share for the year. Despite concerns over a delay related to Blackwell, analysts expect robust demand from data center AI and high-end smartphones to drive growth, with TSMC's stock valuation deemed attractive. Goldman Sachs has reaffirmed its buy rating on Nvidia, highlighting the chipmaker's strong competitive position in the AI market. Analyst Toshiya Hari maintained a $135 price target, suggesting an 8.4% upside potential for the stock, which has already seen a remarkable 150% increase this year. Hari emphasized that demand from major cloud service providers and enterprises remains strong, bolstering Nvidia's prospects ahead of its quarterly earnings report scheduled for August 28. In contrast, Morgan Stanley has downgraded HP to an equal weight rating, indicating that the company's growth catalysts are already reflected in its stock price. Analyst Erik Woodring maintained a price target of $37 for HP, suggesting an 8.5% potential upside. This shift reflects a cautious outlook on HP's future performance as the market adjusts to current valuations. Overall, the tech sector continues to attract investor interest, with analysts highlighting both opportunities and challenges as companies navigate a rapidly evolving landscape.