NVIDIA Easing; AMD and Others Expect Growth Ahead

Market trends suggest NVIDIA's stock is cooling, while AMD shows promising EPS growth forecasts, possibly signaling an opportunity for investors. Attention may shift to Advanced Micro Devices, Axcelis, and Kulicke & Soffa amidst semiconductor market adjustments.

Date: 22-01-2025

AI Rating: 7

Earnings Per Share (EPS) values and their growth rates play a pivotal role in assessing the stocks mentioned in the report. NVIDIA's EPS forecasts indicate an anticipated growth of 27.5%, reaching up to $6.22 in EPS for 2026. However, the growth rate is outpaced by Advanced Micro Devices (AMD), projected to deliver $4.16 in EPS with a more attractive expected growth rate of 41.5%.

The report indicates that NVIDIA’s stock has seen a fluctuation between negative 4% and positive 8% over the past quarter, implying a relatively flat performance. Conversely, AMD’s stock is trading at only 53% of its 52-week high, compared to NVIDIA trading at 90% of its 52-week high. This discrepancy in price action suggests a potential for AMD to close the gap as it shows stronger growth fundamentals.

Other semiconductor-related stocks discussed include Axcelis Technologies and Kulicke and Soffa Industries. Axcelis trades at 46% of its 52-week high, signifying a better risk-reward ratio for investors, while the consensus price target suggests a potential upside of up to 115.5%.

Kulicke and Soffa also have impressive EPS growth forecasts, expecting $2.82 in EPS for 2026 with a growth rate of 59.3%. This strong growth outlook, alongside institutional buying activity, indicates confidence in the stock’s future performance. Overall, while NVIDIA may be cooling down, AMD, Axcelis, and Kulicke & Soffa appear to be positioned for potential growth in a reevaluating market.

Stocks: NVDA AMD ACLS KLIC