3 Chip Stocks For Tech Investors To Buy Now For Coronavirus Rally And Beyond

The Santa Clara, California-based firm is then projected to follow up this projected full-year expansion with 16% higher sales in FY21 and 30% stronger earnings. Inphi has also seen its earnings revision activity turn completely positive to help it grab a Zacks Rank #2 (Buy) right now. IPHI shares jumped following its Q1 release, with the stock now up 56% in 2020 and 150% in the last 12 months. Investors should note that Inphi shares are currently trading around 10% off their recent highs, which could set up a solid buying opportunity.

Nvidia (NVDA - Free Report)

Nvidia is a GPU giant that has proven for years its strength in the booming gaming market and its more recent expansion into data centers and cloud computing has impressive Wall Street. NVDA topped our Q1 estimates on May 21, with revenue up 39%, driven by an 80% climb in data center revenue, which crossed the $1billion threshold for the first time. And NVDA’s new Ampere architecture is set to play a key role within AI-focused chips and in cloud computing

Nvidia in late April also closed its $7 billion acquisition—its largest ever—of Mellanox Technologies to help bolster its data center business and more. Nvidia’s earnings estimates have turned far more positive since its Q1 beats to help it earn a Zacks Rank #2 (Buy) right now. Our Zacks estimates call for its revenue to jump 42% and 33%, respectively in Q2 and fiscal 2021. Meanwhile, NVDA’s adjusted earnings are projected to soar 57% and 36.5% over this same stretch. And Nvidia’s adjusted FY22 EPS figure is projected to jump another 22% higher on 18% higher sales.

NVDA stock is now up 55% in 2020, against its industry’s 7% climb, and 150% in the last year. NVDA’s valuation picture is a bit stretched, but investors have been willing to pay a premium for Nvidia for five years now and its stock price sits 5% below its new highs. And Wall Street might continue to scoop up Nvidia for its longer-term growth outlook within cloud computing, gaming, and more. Plus, Nvidia pays a dividend, is part of an industry that rests in the top 10% of our Zacks industries, and boasts a strong balance sheet.

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Jeremy Schmeltz 7 months ago Member's comment

Really good article, very informative and the author really points the reader in the right direction when considering buying technology stocks. I can't wait to see how these stocks perform in the coming weeks.

Dan Nicholson 7 months ago Member's comment

Agreed.