Two key events scheduled for Wednesday could be much-needed catalysts for the semiconductor sector, which has been struggling of late. Nvidia is set to hold its annual shareholder meeting, and Micron Technology is set to report third-quarter earnings after the close. “There are two positive catalysts on Wednesday to move these stocks in the opposite direction,” said Paul Meeks, portfolio manager and co-chief investment officer at Harvest Portfolio Management. MU YTD Mountain Micron Stock Nvidia’s seemingly limitless rally stalled in recent sessions as investors took a break from semiconductor stocks. The semiconductor giant was up about 6% on Tuesday and is up 14% this month, but is down more than 7% in the past week and is down about 10% from its all-time high. Broadcom and Qualcomm are down about 12% and 11%, respectively, in the past week. It’s not certain that CEO Jensen Huang will attend the Nvidia meeting, but any remarks he makes could be a catalyst for the stock to rise. Meeks noted that Huang’s recent comments about artificial intelligence chips during a visit to Asia helped spur the stock’s rise. He added that the comments could boost sentiment and convince investors that the chip giant has yet to reach peak revenue. Many investors, including Meeks, see Micron’s earnings as a potential spurt of momentum in the sector, with many hoping for upward guidance revisions from the memory chip maker. JPMorgan analyst Harlan Sahr called rising demand from AI “the fastest-growing new memory driver in memory market history” and recommended that investors consider using the stock’s decline as a buying opportunity. He expects earnings per share forecasts to be revised as the industry continues its early recovery. NVDA 5D Mountain Stocks Over the Last 5 Days Citi analyst Christopher Danely raised his price target to $175 per share from $150, citing the better-than-expected guidance and expectations for Micron’s increased exposure to AI memory. The new price target suggests an upside of about 26% from Monday’s closing price. Meeks said the sell-off in chip stocks is overdone and sees the AI theme’s long-term runway at reasonable valuations. He also sees the pullback as an opportunity for investors to get in on the stock, but suggests waiting until after the event to buy up shares. “I’m sitting on a lot of cash and I’m not going to catch a falling knife,” Meeks said. “I might buy more shares of Nvidia and Micron once the news breaks on Thursday morning.”
Wednesday could be a big turning point for AI chip stocks, as they came to a halt in their rapid rally.
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