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For Nvidia (NASDAQ:NVDA), the investment bank said the company’s pullback following the GTC event is the catalyst.
“Recent supply chain discussions indicate demand visibility has extended into 1H25 with CY24’/25′ GPU unit outlook well aligned with our 4.3M/5.2M base case model,” said the bank. “We expect supply chain commentary from key foundry/HBM memory suppliers during earnings and Computex Taiwan on June 2nd where NVIDIA CEO Jensen Huang will deliver a keynote which could be positive catalysts for the stock.”
For MCHP, its upcoming earnings is the catalyst. “Given a 4% underperformance versus peers YTD, we expect MCHP to outperform during earnings season on negative sentiment and our expectation of positive commentary on 2H24 bookings,” Citi wrote.
The bank also stated that with MCHP sales down 40% from its peak, the largest decline among peers, they expect to hear more positive commentary on the second half of 2024 bookings.
Earnings are also the catalyst for INTC. The bank says that with the stock down ~29% year-to-date, they believe it is experiencing negative sentiment due to the foundry business losses.
“Given the positive March notebook data of a 44% MoM increase, we believe there is upside to Consensus estimates and expect the stock to trade higher as Intel derives roughly 31% of revenue from notebook CPUs,” stated Citi.
