New Price Targets for 2 Chip-Related Holdings to Close the Quarter
As we close out the current quarter, we are adjusting the price targets for the portfolio’s positions in Applied Materials ($AMAT) and Marvell ($MRVL). We are making these adjustments to reflect three factors:
- Recent quarterly results and guidance from Micron;
- The multi-billion-dollar announcement by South Korea that will see it invest in chip, AI and data center capacity over the ensuing years;
- And the growing number of indications that hyperscaler capacity remains tight even as AI demand continues to grow and moves by Amazon ($AMZN) and Google ($GOOGL) to sell their custom AI silicon to outside customers.
While some may be critical that we’ve dragged our heels in making these changes compared to others on Wall Street, we would counter by saying that we wanted to measure not once, not twice, but three times before making these adjustments.
Could we have to amend these price targets yet again in the coming weeks and months?
Certainly possible, and that will hinge on what we learn as we move through the upcoming quarterly earnings season.
With all of that said, these are the adjustments we’re making:
Move our Applied Materials ($AMAT) price target to $800 from $510; our checkpoint level goes to $600 from $410.
Our Marvell ($MRVL) price target goes to $340 from $240; our checkpoint level goes to $220 from $180.
As we make these moves with AMAT and MRVL, shares we are also keeping our eyes on their technical setups and RSI levels. AMAT shares have joined the ones for Axon ($AXON) in overbought territory following their considerable climb this month that is approaching 63%. AXON shares have zoomed to $552 from a low of $402. If we trace the stock back a bit further to April 10, the shares bottomed out near $347, making for an even greater move in the shares. That makes for some pretty well-timed buys we made with the shares in early and mid-April.
In keeping with our Two ratings for AMAT and MRVL shares, we will look to identify suitable entry points for members whose positions sizes are smaller than those in the Portfolio. That would also allow the Portfolio to bulk up on the shares at a more favorable risk-to-reward tradeoff.
Because we are likely to get some question about Broadcom ($AVGO) and Nvidia ($NVDA) price targets, please know that for now:
Our Broadcom price target remains $525 and our checkpoint at $340.
Our Nvidia price target remains at $280 and our checkpoint at $175.
Similar to our comment above, as we move through the upcoming earnings season, based on our learnings, we’ll revisit those targets and checkpoint levels as needed.
More Pro Portfolio
- Adding to Our Microsoft Position on Weakness
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At the time of publication, TheStreet Pro Portfolio was long AMAT, AMZN, AVGO, AXON, GOOGL, MRVL and NVDA.
| Symbol | Price Target |
|---|---|
| AMAT | $800 |
| MRVL | $340 |
| Symbol | Panic Price |
|---|---|
| AMAT | $600 |
| MRVL | $220 |
