These stocks have done well over the past few year due to the increase in demand of chips from cloud computing, data centres, connected device and Artifical Intellgience. However, with more chips likely to be supplied over the next few years, the prices of chips may fall.
Intel: Intel's share price fell from its high of $57 after some concensus that Intel's gaining of the high-end cloud computing market was over. But its share prices increased back to $52 today. From a business point of view, Intel has usually held its market share, reacts to new scearios and grow its business. With the scale of resources that it has, it seemed that the markets had overreacted with the sell-off last year.
An estimate by NASDAQ calculated that the target price would be $65 in 3 years with a forward EPS of $5.50 in 5 years, a historical average P/E ratio of 13X, and a discount rate of 10%, representing an upside of 13%.
Nvidia: One reason for owning them in the long run is to gain a diversified exposure to multiple data centrics markets with have huge potential, such as data centers, IoT, AI, automation and AR/VR. These sectors will likey experience rapid growth over the next few years, and it seems that Nvidia is well diversified across these sector. Nvidia did well with a 1000% increase in share price over the last few years, till the huge sell-off in October.
Micron: Micron had witnessed quite a rise from a low of $11 to a high of $60 within the last 2 years, before tanking in June last year. Most of the worries come from a drop in demand for their services, and decreasing profitability. It had also been greatly affected by the US-China trade war. There has also been speculation that their shares are undervalued.
These stocks have done well over the past few year due to the increase in demand of chips from cloud computing, data centres, connected device and Artifical Intellgience. However, with more chips likely to be supplied over the next few years, the prices of chips may fall.
Intel: Intel's share price fell from its high of $57 after some concensus that Intel's gaining of the high-end cloud computing market was over. But its share prices increased back to $52 today. From a business point of view, Intel has usually held its market share, reacts to new scearios and grow its business. With the scale of resources that it has, it seemed that the markets had overreacted with the sell-off last year.
An estimate by NASDAQ calculated that the target price would be $65 in 3 years with a forward EPS of $5.50 in 5 years, a historical average P/E ratio of 13X, and a discount rate of 10%, representing an upside of 13%.
Nvidia: One reason for owning them in the long run is to gain a diversified exposure to multiple data centrics markets with have huge potential, such as data centers, IoT, AI, automation and AR/VR. These sectors will likey experience rapid growth over the next few years, and it seems that Nvidia is well diversified across these sector. Nvidia did well with a 1000% increase in share price over the last few years, till the huge sell-off in October.
Micron: Micron had witnessed quite a rise from a low of $11 to a high of $60 within the last 2 years, before tanking in June last year. Most of the worries come from a drop in demand for their services, and decreasing profitability. It had also been greatly affected by the US-China trade war. There has also been speculation that their shares are undervalued.