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What Is Driving AMD and Nvidia's Strong Stock Price Momentum?

By Jose Najarro – Aug 5, 2021 at 10:00AM

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AMD and Nvidia have received numerous price target upgrades from analysts, but is more happening for these two semiconductor giants?

Both Advanced Micro Devices (AMD 0.27%) and Nvidia (NVDA -1.16%) have had an extremely positive week, with shares of AMD reaching all-time highs during open market hours on August 4 and Nvidia shares close to the same goal. In today's video I look at the recent news that could be driving this positive momentum for both AMD and Nvidia. Here are some highlights from the video: 

  1. On July 26 AMD reported strong earnings, which has triggered numerous analysts to increase the price targets for AMD. Nvidia has also seen increased price target hikes even though its earnings are scheduled for August 16, 2021. Analysts may be bullish for Nvidia after AMD reported a strong quarter. 
  2. On August 3 AMD announced that its new high-performance graphics cards are now available on Apple's (AAPL -2.12%) Mac Pros. On July 29 AMD also announced the release date of its budget-friendly gaming graphics card. 
  3. On August 2 Nvidia announced the availability of its Base Command Platform, a product aimed at enterprise companies that want instant access to powerful computing. The service is a subscription-based model starting at $90,000 a month with a three-month minimum contract. 

Click the video below for my full thoughts and analysis. 

*Stock prices used were the midday prices of August 4, 2021. The video was published on August 4, 2021.


 

Jose Najarro owns shares of Advanced Micro Devices and Nvidia. The Motley Fool owns shares of and recommends Advanced Micro Devices, Apple, and Nvidia. The Motley Fool recommends Xilinx and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy. Jose is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

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Stocks Mentioned

Advanced Micro Devices Stock Quote
Advanced Micro Devices
AMD
$73.39 (0.27%) $0.20
Nvidia Stock Quote
Nvidia
NVDA
$156.39 (-1.16%) $-1.84
Apple Stock Quote
Apple
AAPL
$141.17 (-2.12%) $-3.05
Xilinx Stock Quote
Xilinx
XLNX

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