Mizuho analyst Vijay Rakesh included Gigabyte, a distributor of GPUs and a motherboard OEM, and Zhen Ding, a leading PCB supplier in coverage post-Asia tech series checks.
He believes Gigabyte could see 2Q softness in motherboards, with 2H upside from NVDA 40XX series and Hopper Launch. Near-term, he believes the GPU channel focuses on 3060/80 inventory clearing ahead of new launches, with inventories at normal levels (though GPU pricing is down >40% YTD).
The 2H handsets may be up low single digits y/y and could a see a modest rebound with new model launches and re-openings.
Rakesh believes Advanced Micro Devices, Inc (NASDAQ:AMD) is well positioned with a significant opportunity to gain share. With AMD gaining server share target and upcoming game console launches, Rakesh saw a PT of $145, ~8.7x its F22E P/Sales.
While Nvidia Corp's (NASDAQ:NVDA) valuations were steep, Rakesh believes improving PCs, AI deep learning and inferencing markets, gaming trends, automotive and datacenter position it for upside to estimates.
Rakesh believes Nvidia is well-positioned for the growing machine learning, deep learning, and AI markets driving 10-11x performance versus CPUs.
The $290 PT reflects ~53x F23E P/E, within its forward P/E valuations range ~19x-68x, in line with F23E EPS growing 24% y/y and critical high-margin Data Center growth remaining strong.
Rakesh believes Qualcomm Inc (NASDAQ:QCOM) is well-positioned in the smartphone market as a technology leader with a long-term focus on 5G as it maintains a lead. Rakesh rated QCOM a Buy with a $185 PT, ~15.8x of its F22E EPS.
Price Action: AMD shares traded lower by 6.62% at $88.54 on the last check Monday. NVDA shares traded lower by 7.26% at $157.39, and QCOM shares traded lower by 4.61% at $127.04.
