Several top chip stocks rocked on Wednesday amid positive data points including Broadcom (AVGO), Intel (INTC) and Nvidia (NVDA).
Broadcom shares climbed above their 200-day moving average after Longbow Research initiated coverage of the chipmaker with a buy rating. It set a price target of 295 on the stock.
Broadcom surged as much as 0.9% to 252.03 in intraday trading on the stock market today. But it ended the day down a fraction to 249.40.
Shares of the San Jose, Calif.-based company have been consolidating for the last 27 weeks with a buy point of 285.78. Broadcom hit a rough patch after its takeover bid for Qualcomm (QCOM) failed in March. President Donald Trump prevented that deal on national security grounds.
Broadcom is scheduled to report its fiscal second-quarter results after the market close on June 7.
Intel Gets Boost From HP Report
Santa Clara, Calif.-based Intel surged to an 18-year high following a better-than-expected quarterly report from PC maker HP Inc. (HPQ) late Tuesday.
Intel shares rose 0.7% to 55.68 on Wednesday. In intraday trading, the stock climbed as high as 56.20.
Intel is the top supplier of PC chips worldwide and HP is the leading maker of personal computers.
HP earned an adjusted 48 cents a share, up 20% year over year, on sales of $14 billion, up 13%, in its fiscal second quarter ended April 30. Earnings were in line with analyst expectations, but HP beat Wall Street’s sales target by $430 million.
HP’s PC unit sales rose 7% year over year, while PC revenue jumped 14% to $8.76 billion. Printers and printing supplies contributed the rest of HP’s sales.
Nvidia Introduces New AI Platform
Nvidia made several announcements at its GPU Technology Conference in Taiwan on Tuesday. The news centered around Nvidia’s efforts in computing using graphics processing units.
It introduced the first unified computing platform for both artificial intelligence and high-performance computing called the Nvidia HGX-2. The cloud server platform provides two petaflops of processing power, the company said in a news release.
Nvidia Chief Executive Jensen Huang said the HGX-2 will be a “building block” cloud server platform that will let server manufacturers create more powerful systems for high-performance computing and AI.
Four server makers — Lenovo, QCT, Super Micro Computer (SMCI) and Wiwynn — announced plans to bring HGX-2-based systems to market later this year.
Nvidia stock rose 1.8% to 252.99. Nvidia is one of the top chip stocks today and is ranked No. 24 on the IBD 50 list of top-performing growth stocks.
