NVDA, INTC Stocks Look Cheaper Than AMD Against Fair Value, Morningstar Says
Morningstar raised AMD's fair value estimate to $570, seeing 18% upside, while Nvidia (NVDA) and Intel (INTC) are rated undervalued with targets of $570 and $85, respectively. AMD's stock fell 2.6% in pre-market trading, while NVDA and INTC dropped 0.3% and 1.2%. Morningstar expects AMD's server CPU revenue to grow over 100% by 2027, but notes risks from PC demand and memory costs.
How this was made
The 30-second read
Why it matters
The analyst’s revisions provide fresh valuation data that could influence short‑term trading decisions, though broader market weakness tempers immediate impact.
Market read
Analyst valuation updates for NVDA, INTC and AMD add new price‑target data, offering modest trading ideas amid a soft tech market.
What to watch
Potential supply‑chain constraints and AI‑related capital expenditures may delay the realization of the projected upside.
Background
Morningstar analyst Brian Colello released new fair‑value estimates and price targets for three major GPU/CPU makers, noting differing upside potentials and sector challenges.
Ticker impact
Morningstar kept NVDA undervalued with a $570 price target, implying ~50% upside.
possible modest upside as market prices in the new target.
New fair‑value estimate provides fresh upside thesis, but immediate price pressure is limited.
Morningstar retained INTC undervalued with an $85 price target, implying ~40% upside.
likely pressure as investors weigh the target against current weakness.
New target may attract buyers, but short‑term sentiment remains negative.
Morningstar raised AMD fair value to $570 and kept a ‘fairly valued’ rating, noting 18% upside.
downward pressure in the near term despite upside thesis.
Analyst optimism is offset by market sell‑off and concerns over PC demand.
Market effects
The updated fair‑value estimates may lift sentiment in the broader semiconductor sector if investors view the targets as credible.
US tech stocks could see modest re‑rating activity, but no immediate regional shift.
Limited; the commentary is US‑focused and does not alter global macro dynamics.
Counterpoint
Despite higher targets, the current market weakness and memory‑cost concerns could keep AMD and peers under pressure.
Key entities
- AnalystBrian Colello
Senior analyst at Morningstar who issued the fair‑value updates.
- CompanyNvidia
Chipmaker receiving an unchanged undervalued rating with a $570 target.
- CompanyIntel
Chipmaker receiving an unchanged undervalued rating with an $85 target.
- CompanyAMD
Chipmaker receiving a raised fair‑value estimate to $570 and a fairly valued rating.
