Nvidia vs. Intel: Analyst Recommends Investing in One and Divesting from the Other

Key Points

• Harlan Sur at J.P. Morgan recommends buying Nvidia and selling Intel; his forecasts imply a 32% upside for Nvidia and a 52% downside for Intel.

• Nvidia is driving the AI boom with superior GPUs and data center systems, while Intel has not yet established a strong position in this area.

• Intel recently reported a revenue increase of 7%, hitting $13.6 billion, while Nvidia’s revenue surged 73% to $68 billion, reflecting their differing market positions.

Nvidia (NASDAQ: NVDA) is a leader in data center GPUs essential for AI workloads, with a target price of $265 per share from J.P. Morgan, suggesting a potential upside of 32% from its current trading price of $200. Meanwhile, Intel (NASDAQ: INTC) has a target of $45 per share, indicating a 52% downside from its current share price of $94, despite recently beating estimates in its latest earnings report with revenue growth driven primarily by strong data center sales.

While Intel’s earnings soared 123% to $0.29 per share, analysts remain cautious of its market share loss to competitors. On the other hand, Nvidia’s robust fourth-quarter results, alongside expected future growth, highlight its dominance in the sector.