E Analysts Clash On Nvidia, AMD

In recent weeks, analysts have had mixed views on chip makers Nvidia (NVDA) and AMD (AMD ). Yesterday research firm Jefferies wrote that Steven Spielberg’s film, “Ready PlayerOne,” slated to be released later this month, could be a catalyst for the stocks, The Fly reported.

According to the firm,the film will cause sales of virtual reality headsets to rise. Both Nvidia and AMD make chips used in such devices. On February 23, Bank of America/Merrill Lynch also recommended Nvidia stock and AMD stock, citing positive trends in PC games and cryptocurrency, according to The Fly. The firm kept Buy ratings on both stocks. 

However, not all analysts have been upbeat on Nvidia stock and AMD stock in recent weeks. On February 9, Wells Fargo kept an Underperform rating on Nvidia stock, citing what it sees as the “unimpressive” growth of the company’s auto segment and the potentially “unsustainable” gains generated by its cryptocurrency business, The Fly reported. And on January 31, following AMD’s earnings report, research firm Stifel stated that AMD’s revenue was still catching up with its share price, and said it was waiting for the company’s gross margin to rise, Seeking Alpha noted.Additionally, Deutsche Bank and Barclays have Hold ratings on Nvidia, whileCredit Suisse has a Hold rating on AMD and Goldman Sachs has a Sell rating on AMD stock, according to TipRanks. 

In other negative news for AMD, today an Israeli cybersecurity company, CTS Labs, reported that it had found 13 security vulnerabilities in the company’s processors.