Two semiconductor stocks rose on Tuesday after bullish reports from Wall Street analysts. arm (arm) Inventory and monolithic power system (MPWR) Both stocks achieved target price increases.
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Rosenblatt Securities analyst Hans Mosesmann raised his 12-month price target for Arm stock from 85 to 110. He also raised his price target for Monolithic from 550 to 750. Mosesman rates both fabless semiconductor stocks as “buys.”
In morning trading on the stock market, Arm stock soared 2.4% to a record high of $74. It ended the day 1.6% higher at 73.41.
Meanwhile, Monolithic shares rose 3.1% to close at 637.04.
The Philadelphia Semiconductor Index, known as SOX, rose 1.8% on Tuesday. SOX includes the 30 largest semiconductor stocks traded in the US
Semiconductor stocks: Arm On Leaderboard
Mosesman sees Arm benefiting from chipmakers using its designs to make chips for artificial intelligence applications.
He said factors driving Arm’s multi-year roadmap include moving to the v9 architecture and moving AI to network edge devices where graphics processing units are not optimal.
Mosesman said Arm is also aiming to gain market share in central processing units for PCs and servers.
As for Monolithic, he sees the company making money selling power management chips for AI applications. The company has “deep and lasting relationships with” Nvidia (NVDA) and other AI accelerator chip players from Power Analog Chips and related products,” Mosesman said.
Additionally, monolithic should benefit from continued growth in chips for automotive applications, particularly electric vehicles.
Arm stock is listed on IBD’s leaderboard, IPO leader Inventory list. Monolithic is included in IBD’s Long Term Leaders Portfolio Watchlist.
IBD inventory diagnosis ranks Arm stock No. 2 out of 37 stocks in IBD’s fabless semiconductor industry group. Monolithic stocks rank 6th in the group.
Follow Patrick Seitz on X (formerly Twitter). @IBD_PSeitz Check out more articles on consumer technology, software, and semiconductor stocks here.
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