Analysts are Upgrading These 5 Tech Stocks

In this article, we discuss the 5 tech stocks recently upgraded by analysts. If you want to see more such stocks on the list, go directly to Analysts are Upgrading These 9 Tech Stocks.

5. ASML Holding N.V. (NASDAQ:ASML)

Number of Hedge Fund Holders: 51

Susquehanna raised its ratings for ASML Holding N.V. (NASDAQ:ASML) from “Neutral” to “Positive” last week. Analyst Mehdi Hosseini upgraded the Dutch semiconductor equipment maker following its analyst day.

Hosseini expressed confidence in the company’s long-term financial strategy. He thinks ASML Holding N.V. (NASDAQ:ASML) can achieve an EBITDA CAGR of 30 percent from fiscal 2022 to 2025 and 20 percent from fiscal 2022 to 2030.

The latest coverage came just days after ASML Holding N.V. (NASDAQ:ASML) projected solid demand for the foreseeable future. The company expects its sales to double to $41 billion by 2025. Moreover, it also hinted towards potential acquisitions to meet the rising demand for advanced chips.

4. Applied Materials, Inc. (NASDAQ:AMAT)

Number of Hedge Fund Holders: 67

Summit Insights improved its ratings for Applied Materials, Inc. (NASDAQ:AMAT) from “Hold” to “Buy” last week. The upgrade came a day after the California-based company surpassed financial expectations for its fiscal fourth quarter.

Applied Materials, Inc. (NASDAQ:AMAT) earned $2.03 per share on an adjusted basis, crushing expectations of $1.74 per share. The quarterly revenue of $6.75 billion also exceeded the consensus of $6.45 billion.

For the current quarter, Applied Materials, Inc. (NASDAQ:AMAT) projected revenue of about $6.70 billion, above analysts’ average estimate of $6.45 billion.

3. QUALCOMM Incorporated (NASDAQ:QCOM)

Number of Hedge Fund Holders: 80

Credit Suisse issued an “Outperform” rating for QUALCOMM Incorporated (NASDAQ:QCOM) last week. Analyst Chris Caso expects a revenue catalyst from Samsung share gains next year.

Caso also pointed towards a potential upside, subject to a supply deal with smartphone giant Apple for its next iPhone model. The analyst has a price target of $150 per share for QUALCOMM Incorporated (NASDAQ:QCOM).

Earlier this month, QUALCOMM Incorporated (NASDAQ:QCOM) released its fiscal fourth-quarter results that matched expectations. However, investors expressed disappointment over its sales outlook for the current quarter.

QUALCOMM Incorporated (NASDAQ:QCOM) projected revenue in the range of $9 – $10 billion for its fiscal first quarter, below analysts’ average estimate of $12 billion.

2. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 89

NVIDIA Corporation (NASDAQ:NVDA) received an upgrade from Summit Insights on Wednesday, November 16. The research firm lifted its ratings for the graphics processors maker from “Hold” to “Buy.” Analyst Kinngai Chan thinks the stock offers a favorable risk-reward. Chan expects new product cycle contributing to the company’s growth.

Separately, investment management firm ClearBridge Investments also discussed NVIDIA Corporation (NASDAQ:NVDA) in its third-quarter 2022 investor letter. Here’s what the firm said:

“Likewise, graphics chip maker NVIDIA Corporation (NASDAQ:NVDA) (-19.9%) has struggled through the post-COVID-19 recovery but maintains dominant positions in key secular growth markets of AI and gaming. The company has significantly underperformed the index and semiconductor peers recently due to a gaming inventory correction, a decline in aggregate cryptocurrency demand and reduction in crypto mining intensity as well as concerns around the sustainability of data center sales.

We tactically trimmed our position early in 2022 due to concerns around these cycle dynamics but remain confident in the company’s long-term prospects.”

1. Advanced Micro Devices, Inc. (NASDAQ:AMD)

Number of Hedge Fund Holders: 89

Two analysts turned bullish on Advanced Micro Devices, Inc. (NASDAQ:AMD) last week. Baird analyst Tristan Gerra upgraded the semiconductor giant from “Neutral” to “Outperform,” citing confidence around its new line of CPUs, dubbed Genoa.

Gerra believes Genoa chips will help Advanced Micro Devices, Inc. (NASDAQ:AMD) accelerate its market share gains in the coming quarters. He also raised his price target for AMD stock from $65 per share to $100 per share.

Separately, UBS analyst Timothy Arcuri also upgraded Advanced Micro Devices, Inc. (NASDAQ:AMD) from “Neutral” to “Buy” and lifted his price target for the stock from $75 per share to $95 per share. The analyst was primarily moved by improving CPU shipments that he believes could make up for the weakness in PC chips.

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