Latest news with #JamesSchneider
Yahoo
5 days ago
- Business
- Yahoo
Goldman Sachs Starts Amkor (AMKR) at Neutral Amid Stable Semi Cycle and China Tailwinds
Amkor Technology Inc. (NASDAQ:AMKR) is one of the most oversold semiconductor stocks so far in 2025. On July 10, Goldman Sachs analyst James Schneider began coverage of Amkor Technology with a Neutral rating and a $20 price target, as part of a broader initiation on U.S. semiconductor capital equipment, storage, and foundry names. The analyst categorizes the current industry environment as being in the mid-cycle, which for Amkor specifically translates into a relatively stable revenue outlook over the next 18–24 months. Schneider sees limited upside catalysts in the near term but does not foresee major downside risks either, suggesting a 'wait and watch' approach is warranted for now. Close-up of Silicon Die are being Extracted from Semiconductor Wafer and Attached to Substrate by Pick and Place Machine. Computer Chip Manufacturing at Fab. Semiconductor Packaging Process. From a geographic standpoint, he thinks that China appears more of an opportunity rather than a threat for companies in the semiconductor supply chain, including outsourced assembly and test providers like Amkor. While geopolitical uncertainties remain a factor, China could drive demand in areas such as consumer electronics and mobility, and thus could offer some tailwinds. One area where Goldman does see upside for the industry is in storage, particularly with a potential NAND recovery into 2026. Although Amkor is not a pure-play on this segment, strength in memory and storage markets could indirectly benefit the company through increased packaging demand tied to those end-markets. Amkor Technology Inc. (NASDAQ:AMKR) provides outsourced semiconductor packaging and test services. While we acknowledge the potential of AMKR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 11 Best Debt-Free Stocks to Invest in Right Now and 10 Most Oversold S&P 500 Stocks So Far in 2025. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
17-07-2025
- Business
- Yahoo
Looking for AI Chip Stocks Beyond Nvidia? Goldman Sachs Says These 2 Names Deserve a Look
The AI boom has been generating hype and headlines for several years now, and deservedly so. It's transforming the way businesses operate, reshaping everything from data crunching and decision-making to customer service and content generation. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. AI might exist in a data cloud, but it requires hardware. The AI companies need data centers, high-performance computers, and advanced networking – and all of that requires silicon semiconductors, many of them custom-designed. Chip giant Nvidia, with its $4 trillion market cap, is the 800-pound gorilla in this room, but there are other names that investors can look to for profits. Covering the fields of tech, AI, and semiconductors, Goldman Sachs analyst James Schneider points out the contours of the field and its opportunities, writing: 'We believe the AI investment cycle is in a state of transition, with over $350bn in CapEx spent on AI infrastructure. Although monetization has been elusive, we see early signs of incremental revenue and much clearer evidence of cost takeout to justify these investments – and we believe AI CapEx can sustain growth from current levels.' Schneider follows on from these comments by tagging two chip names that deserve a closer look. It doesn't hurt that both stocks also carry Strong Buy ratings from the broader Street, according to the TipRanks database. Let's take a closer look. Cadence Design Systems (CDNS) The first stock on our radar here is Cadence Design, a high-tech firm from San Jose, California, in the heart of Silicon Valley. Cadence provides the technology and support necessary for some of our world's most important industries to thrive. The company uses its Intelligent Design System to develop its products and software, and its services are in high demand everywhere from the chip industry to the pharmaceutical sector. Cadence's solutions include 3D-IC design, 5G systems, Artificial Intelligence and generative AI, an extensive cloud portfolio, data center design, multiphysics systems analysis – it's a long list, as Cadence has connections across the tech world. Its products and tech are used in a wide range of essential secondary products, including silicon chips, integrated circuit boards – items that are used everywhere from the aerospace sector to the life sciences, and including plenty of AI applications. It's not just that Cadence's own work is applicable to AI, but also that the company uses AI, and AI-powered applications, to support its work and develop its product lines. The company uses agentic AI to help engineers meet the challenges presented by the latest chip designs, and its generative AI platform has the potential to transform semiconductor chip design. Finally, Cadence's AI IP platform provides comprehensive solutions in the worlds of IP and software. When we look ahead, we see that Cadence's contribution to chip design gives the company a strong foundation from which to grow. Hyperscale AI and cloud providers – think Amazon, Google, and Microsoft – have a definite need for custom chips that are designed to handle high volumes at lower cost, and Cadence is well-placed to fill that niche. Turning to Cadence's financial performance, we find that in 1Q25, at the bottom line, the non-GAAP EPS of $1.57 was up 40 cents per share from 1Q24 and was 7 cents higher than the forecast. Revenue, at $1.24 billion, was up 23% year-over-year and met Street expectations. Cadence finished Q1 with a work backlog of $6.4 billion. For Goldman's Schneider, the key points here are the quality of Cadence's business and the high potential of the company to continue growing. He says of this AI-adjacent tech firm, 'We see Cadence as one of the most high-quality compounding businesses in our coverage, with exposure to multiple drivers of growth throughout the industry. We see long-term growth driven by the diffusion of custom chip design across a broader range of customers with an outsized need for IP…' Based on this stance, Schneider rates CDNS as a Buy, which he complements with a $380 price target that suggests a one-year upside potential to the stock of 19.5%. (To watch Schneider's track record, click here) Cadence has a Strong Buy consensus rating from the Street's analysts, based on 15 recent reviews which break down 14 to 1 in favor of Buy over Hold. The shares are priced at $318.04 and their $338.64 average price target implies a 6.5% gain for the next 12 months. (See CDNS stock forecast) Broadcom, Inc. (AVGO) Next up is a company more directly tied to the field of AI chips. Broadcom is a giant of the chip industry; with its market cap of $1.30 trillion, it's the second-largest chip maker on the global scene – and the eighth-largest publicly traded company on Wall Street. While Broadcom's business has been built on a wide variety of products and product lines, from cable modems to fiber optics to wireless connectivity, the company's current strengths include AI-capable chips and application-specific integrated circuits, or ASICs. These are a key technology in the AI field and also underlie the functioning of cloud-based systems. ASICs are custom-made to the buyer's/user's specifications, which makes them more efficient in terms of power consumption and processing speed. In AI, cloud, and data center applications, these are vital advantages. Broadcom is known as a solid provider of silicon chips and other technology in the data center world, able to provide, at any scale, the hardware needed to build out high-performance server stacks and to develop and maintain high-speed connectivity. The company is also working on the next generation of AI-capable technologies, from connectivity solutions to custom accelerators, that will revolutionize the AI industry in ways that are still just in the outline stage. Broadcom's development work is part of a coherent strategy that will keep the company relevant as a technology supplier as the AI sector evolves. The company's current success, and its sheer scale, give it a sound foundation for continued leadership in the field. Broadcom's leading position in data center switching, and its reputation for high-quality, high-speed networking, are both attractive to the AI industry's hyperscalers, and the company can leverage its own scale to meet the needs of its largest customers. In the recently reported fiscal 2Q25, Broadcom generated $15 billion in total revenue. This figure was up 20% from fiscal 2Q24, and it beat the forecast by $30 million. The company's earnings came to $1.58 per share by non-GAAP measures, a penny better than had been estimated. Management attributed $4.4 billion of the quarterly revenue to AI, a subtotal that was up 46% year-over-year. The gain in AI revenue was supported by strong demand for AI networking. Scale and profitability are valuable assets for any company, especially one targeting an industry experiencing the powerful growth that currently characterizes AI. This caught the attention of Goldman Sachs, and when we check in again with analyst Schneider, we find him upbeat on AVGO, writing, 'We believe the company will leverage its leadership in enterprise networking silicon to drive outsized share in custom silicon for hyperscalers, with AI likely comprising over 40% of revenue by 2026. Broadcom also continues to generate steady, growing profitability in its infrastructure software business. We see the stock's premium valuation as justified by the visibility provided by sole-sourcing at silicon accounts and the mission-critical nature of its software portfolio.' Schneider puts a Buy rating on AVGO, and his price target of $315 implies that the stock will gain 12% by this time next year. Broadcom has picked up 30 recent analyst reviews, and these have a lopsided split of 28 Buys to 2 Holds to support the Strong Buy consensus rating. Shares in AVGO are currently trading for $280.94, and their $300.96 average price target points toward a one-year gain of 7%. (See AVGO stock forecast) To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment. Disclaimer & DisclosureReport an Issue Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16-07-2025
- Business
- Yahoo
Goldman Highlights Two Chip Stocks To Watch Beyond Nvidia
Goldman Sachs (NYSE:GS) thinks the AI frenzy has room for more than just Nvidia (NASDAQ:NVDA) and spots two chip plays that could keep the momentum going. Analyst James Schneider says we've already seen over $350 billion poured into AI infrastructure and we're finally getting some payoffs. Warning! GuruFocus has detected 10 Warning Signs with GS. Instead of crowding back into Nvidia's stretched valuation, Schneider points to Cadence Design Systems (NASDAQ:CDNS) and Broadcom (NASDAQ:AVGO) as stocks with real upside. Cadence delivered Q1 non?GAAP EPS of $1.57, beating estimates by 7 cents, and revenue rose 23% to $1.24 billion. Its $6.4 billion backlog shows customers are lining up for its AI?powered design tools. Schneider calls Cadence a high?quality compounding business thanks to its suite of AI and IP platforms. Broadcom isn't hanging back. In fiscal Q2 it posted $15 billion in revenue, up 20%, and EPS of $1.58 beat forecasts by a penny. AI accounted for $4.4 billion of that, a 46% jump. Schneider believes Broadcom's scale in data?center switches and custom ASICs will push AI revenue past 40% by 2026, justifying its premium multiple. This article first appeared on GuruFocus.
Yahoo
14-07-2025
- Business
- Yahoo
Goldman Sachs Backs Nvidia and Broadcom as Top AI Stocks to Own
Goldman Sachs just awarded Nvidia (NVDA, Financials) and Broadcom (AVGO, Financials) a major thumbs-up. Both stocks are now on the investment bank's list of top AI ideas, and analyst James Schneider gave both equities new Buy story isn't new, but it's still strong. Schneider thinks the firm is the center of the AI revolution, not just because of its GPUs, but also because of its burgeoning software ecosystem, dedicated customers, and constant stream of new ideas. Goldman thinks there's still potential for the stock to go up, even though it has already gone up more than 20% this year. They set a price objective of $ likes what it sees from Broadcom, which is taking a new approach to AI. The company is making a lot of progress in custom AI chips and infrastructure software, which are two areas that are predicted to bring in more than 40% of its income by 2026. Schneider points out that Broadcom has strong connections with hyperscale cloud providers and that its stable profitability and sticky software make it worth more. What does he want? $ here's the larger picture: Goldman thinks we're not at the conclusion of the AI tale; we're just starting the next act. The first wave was all about constructing infrastructure; now, it's about finding ways to make it work. That means greater chances for businesses like Nvidia and Broadcom that are already doing a lot of message is clear and to the point. If you really want to get into AI, you should put these two stocks on your watchlist and maybe even buy them. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-07-2025
- Business
- Yahoo
Goldman Sachs Backs Nvidia and Broadcom as Top AI Stocks to Own
Goldman Sachs just awarded Nvidia (NVDA, Financials) and Broadcom (AVGO, Financials) a major thumbs-up. Both stocks are now on the investment bank's list of top AI ideas, and analyst James Schneider gave both equities new Buy story isn't new, but it's still strong. Schneider thinks the firm is the center of the AI revolution, not just because of its GPUs, but also because of its burgeoning software ecosystem, dedicated customers, and constant stream of new ideas. Goldman thinks there's still potential for the stock to go up, even though it has already gone up more than 20% this year. They set a price objective of $ likes what it sees from Broadcom, which is taking a new approach to AI. The company is making a lot of progress in custom AI chips and infrastructure software, which are two areas that are predicted to bring in more than 40% of its income by 2026. Schneider points out that Broadcom has strong connections with hyperscale cloud providers and that its stable profitability and sticky software make it worth more. What does he want? $ here's the larger picture: Goldman thinks we're not at the conclusion of the AI tale; we're just starting the next act. The first wave was all about constructing infrastructure; now, it's about finding ways to make it work. That means greater chances for businesses like Nvidia and Broadcom that are already doing a lot of message is clear and to the point. If you really want to get into AI, you should put these two stocks on your watchlist and maybe even buy them. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
