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Semiconductor stocks rebound as AMD surges on higher price targets
AMD gained 4% after Rosenblatt lifted its price target to $665 and UBS raised its target to $700 ahead of the chipmaker's annual AI conference this week.
Semiconductor stocks rebounded in early trading on Monday after a late-week rout that left the PHLX Semiconductor Index down more than 9% last week. Nvidia rose more than 2%, while AMD jumped 4% on analyst price target calls, with other chip names including Broadcom and Intel also moving higher. Memory and storage leaders Micron Technology and SK Hynix gained 5%.
Rosenblatt selected AMD as a “top pick” and raised its price target to $665 from $490, while UBS lifted its price target to $700 and maintained a Buy rating ahead of AMD’s annual AI conference this week. UBS also pointed to a 20% decline in the semiconductor index over the past month, describing it as a positioning unwind following a 90% year to date rally.
Wall Street sentiment remains constructive on the AI trade, with JPMorgan strategist Mislav Matejka arguing semis will likely find a floor as earnings stay strong. He added that meaningful supply additions are not due until before 2028.
The rebound also comes as investors weigh competition from Chinese AI startups, including Moonshot’s Kimi K3, described as running at a much lower cost than US models. Deutsche Bank analysts said the market reaction reflected concerns about whether the industry’s capex trajectory is sustainable if similar performance can be delivered more cheaply.