HomeMarket NewsUnearthing Potential: Semiconductor Stocks Poised for Growth in April 2024

Unearthing Potential: Semiconductor Stocks Poised for Growth in April 2024

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Dive into the treasure trove of undervalued semiconductor stocks ripe for investment this April.

Advanced Micro Devices (AMD)

Peering into the landscapes of possibility, we find the chalice of opportunity waiting in the hands of Advanced Micro Devices (AMD) (NASDAQ:AMD).

Having stumbled from $230 to $170, AMD currently finds itself perched at $178.70, primed for a resurgence towards its previous highs. With aspirations reaching skyward, one could hope to see AMD soar beyond $300 a share in the longer timeline as the demand for AI chips escalates.

Marching in lockstep with Nvidia, AMD stands tall among the elite semiconductor stocks enticing investors with every downturn. Embracing the wave of AI advancements, its recent launch of the MI200X AI GPU positions it in the ring against Nvidia, while also venturing into the realm of AI-powered computers. Collaborating with tech titans like Microsoft (NASDAQ:MSFT) and Oracle (NYSE:ORCL), AMD is clearly charting a course towards success.

In a reassuring pulse, analysts at Melius Research have revised AMD’s price target to $265 from $192, accompanying it with a resounding Buy rating. The firm’s optimism shines as they proclaim, β€œWith Microsoft as an anchor β€” and other clouds now picking up β€” AMD can generate more upside in AI vs. prior estimates.”

Taiwan Semiconductor Manufacturing (TSM)

Among the shadows, Taiwan Semiconductor Manufacturing (NYSE:TSM) emerges as a hidden gem within the array of undervalued semiconductor stocks awaiting discovery this April.

Having brushed the heavens at $158.40, TSM is now paused at $140.22, its engines revving for a potential comeback to its previous peak. Adding to the symphony of encouragement, analyst Mehdi Hosseini bestows TSM with a favorable rating, polishing it with a new, loftier price target of $180 from $160.

A buffet of positive news surrounds TSM, with reports confirming that its business has bottomed out, ready to ride the cresting wave of demand for artificial intelligence. Its stature as the manufacturer of chips for industry giants like AMD and Nvidia further consolidates its standing in the realm of semiconductor giants.

Celebrated on Seeking Alpha, β€œDemand for AI-optimized chips is outstripping supply, which puts Taiwan Semiconductor Manufacturing into an admirable position and which could justify further valuation gains. The chipmaker said in January that it expects 20% top-line growth in FY 2024 due to favorable supply-demand imbalances as industries around the world are racing to adapt to the AI revolution.”

Marvell Technology (MRVL)

Marvell Technologies Makes Power Moves: MRVL Stock Analysis

Investors are eying Marvell Technology (NASDAQ:MRVL) with cautious optimism as the stock shows signs of a potential uptrend. After a descent from its $85 summit to a recent valley at $65, MRVL is now perched at $73.59, poised for a climb. The recent dividend declaration of six cents per share, scheduled for payment on May 1 to holders on record as of April 12, hints at the company’s confidence in its trajectory.

Empowering Shareholders

MRVL bolsters investor confidence with an additional allocation of $3 billion to its ongoing stock repurchase initiative, elevating the repurchase authority’s total to approximately $3.3 billion. Simultaneously, Citi (NYSE:C) has cast a spotlight on MRVL by initiating a 30-day catalyst watch, in anticipation of the company’s upcoming AI event on April 11.

Analyst Prognosis

Is Marvell Technology on the brink of a breakthrough? Could seizing MRVL shares before the AI presentation yield dividends for savvy investors? Citi certainly seems to think so, endorsing the stock with a Buy rating and setting a price target of $91. According to CNBC, Citi highlights MRVL’s AI-driven data center business as a beacon of hope amidst market dynamics.

Disclaimer: Ian Cooper holds no positions in the aforementioned securities. The viewpoints articulated in this piece are in accordance with the InvestorPlace.com Publishing Guidelines.

A stock and options expert, Ian Cooper has been unraveling market insights since 1999 for various web-based advisories.

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