The shares of Nvidia Corp. have experienced a remarkable increase of 165% year-to-date. However, according to Susquehanna analyst Chris Rolland, there is still significant potential for further growth.
The individual raised his price target for Nvidia’s stock, NVDA, to $160 from $145. The new target suggests a potential increase of 21% from the stock’s closing price on Friday. The basis of his target is a multiple of approximately 51.5 times his projected adjusted earnings per share for the year 2025.
“Although this multiple exceeds the group median of approximately 28.5x, we consider it justified due to the company’s strong position in lucrative end markets,” stated Rolland.
A majority of analysts surveyed by FactSet have optimistic ratings on Nvidia’s stock, with more than three-quarters expressing a bullish outlook. However, the mean price target is currently lower than the closing price on Friday. This is likely due to certain analysts not yet revising their projections to account for recent stock performance, including the significant 40% increase observed in the past month.
Rolland acknowledges the possibility of Nvidia’s stock increasing by 21%, but his current target is the highest among all the targets listed on FactSet. Within the PHLX Semiconductor Index, there are three stocks whose average price targets suggest a minimum of 23% potential gain. The mentioned companies are Lattice Semiconductor Corp. (LSCC), Rambus Inc. (RMBS), and Intel Corp. (INTC). Below is the complete list of stocks in the index, arranged in order of their 12-month upside potential as indicated by the consensus price targets. The table also displays the potential positive outcome based on the most optimistic price target provided by analysts covering each stock.
| Company | Ticker | June 14 price | Consensus price target | Highest price target | Implied 12-month upside potential to cons. target | Implied 12-month upside potential to highest target |
| Lattice Semiconductor Corp. | LSCC | $60.22 | $80.98 | $88.00 | 26% | 46% |
| Rambus Inc. | RMBS | $56.95 | $76.43 | $85.00 | 25% | 49% |
| Intel Corp. | INTC | $30.45 | $39.73 | $100.00 | 23% | 228% |
| Marvell Technology Inc. | MRVL | $73.27 | $89.79 | $105.00 | 18% | 43% |
| STMicroelectronics N.V. ADR | STM | $42.46 | $50.60 | $62.91 | 16% | 48% |
| Advanced Micro Devices Inc. | AMD | $159.63 | $190.02 | $250.00 | 16% | 57% |
| Wolfspeed Inc. | WOLF | $27.15 | $32.11 | $52.00 | 15% | 92% |
| ON Semiconductor Corp. | ON | $71.97 | $83.89 | $104.00 | 14% | 45% |
| Microchip Technology Inc. | MCHP | $91.35 | $102.67 | $115.00 | 11% | 26% |
| Entegris Inc. | ENTG | $133.90 | $148.84 | $164.00 | 10% | 22% |
| Analog Devices Inc. | ADI | $231.19 | $256.55 | $295.00 | 10% | 28% |
| MKS Instruments Inc. | MKSI | $133.77 | $148.00 | $160.00 | 10% | 20% |
| ASML Holding N.V. ADR | ASML | $1,027.90 | $1,114.18 | $1,406.00 | 8% | 37% |
| Micron Technology Inc. | MU | $141.36 | $150.78 | $240.78 | 6% | 70% |
| Broadcom Inc. | AVGO | $1,735.04 | $1,827.92 | $2,100.00 | 5% | 21% |
| Axcelis Technologies Inc. | ACLS | $138.73 | $146.00 | $170.00 | 5% | 23% |
| NXP Semiconductors N.V. | NXPI | $268.85 | $279.46 | $370.00 | 4% | 38% |
| Applied Materials Inc. | AMAT | $237.03 | $239.00 | $280.00 | 1% | 18% |
| Monolithic Power Systems Inc. | MPWR | $806.57 | $801.56 | $900.00 | -1% | 12% |
| Lam Research Corp. | LRCX | $1,035.98 | $1,016.45 | $1,200.00 | -2% | 16% |
| Qorvo Inc. | QRVO | $112.38 | $109.46 | $128.00 | -3% | 14% |
| Taiwan Semiconductor Manufacturing Co. ADR | TSM | $172.51 | $166.27 | $183.00 | -4% | 6% |
| Skyworks Solutions Inc. | SWKS | $104.37 | $100.33 | $125.00 | -4% | 20% |
| KLA Corp. | KLAC | $824.84 | $784.98 | $950.00 | -5% | 15% |
| Nvidia Corp. | NVDA | $131.88 | $123.63 | $160.00 | -7% | 21% |
| Qualcomm Inc. | QCOM | $215.33 | $201.57 | $255.00 | -7% | 18% |
| Texas Instruments Inc. | TXN | $193.90 | $180.48 | $225.00 | -7% | 16% |
| Teradyne Inc. | TER | $145.06 | $129.95 | $161.00 | -12% | 11% |
| United Microelectronics Corp. ADR | UMC | $8.73 | $5.10 | $5.10 | -71% | -42% |
| ASE Technology Holding Co. ADR | ASX | $11.29 | N/A | N/A | N/A | N/A |
| Source: FactSet | ||||||
The three companies leading the list have faced significant challenges this year. Lattice’s shares have declined by 13% so far in 2024, Rambus has experienced an 18% decrease in share value, and Intel’s shares have dropped by 39%.
Based on their ratings, analysts are generally positive about the shares of Lattice and Rambus. According to FactSet, 71% of the analysts who were monitored hold buy-equivalent ratings for both companies. Lattice’s average price target indicates a potential increase of 26%, while Rambus’s suggests a potential increase of 25%.
The assessment of Intel’s situation is more varied. While the average price target suggests a potential increase of 23%, only 28% of the analysts surveyed by FactSet have a positive outlook on the company. Out of the 47 options that are listed, 13 have ratings that are equivalent to a recommendation to buy, 30 have ratings that are neutral, and four have ratings that suggest selling.
Conversely, the PHLX Semiconductor Index includes 11 stocks that have average price targets indicating a potential for negative returns. However, it is possible that the lack of recent model updates could explain many of these ratings, as analysts have predominantly given positive ratings to seven of these stocks.
Meanwhile, a significant portion of the stocks in the PHLX Semiconductor Index have price targets set by Wall Street that suggest a higher potential for growth compared to Nvidia’s. Intel is the frontrunner in this group, with a target indicating potential for a more than 200% increase. Following closely are Wolfspeed Inc. (92%) and Micron Technology Inc. (70%).
