Chip pricing trends remain strong, according to Mizuho analyst Vijay Rakesh, and he thinks that could bode well for Advanced Micro Devices Inc. , Nvidia Corp. , Micron Technology Inc. and Western Digital Corp. in the first half of the year. Sold-state drive (SSD) pricing looks “robust,” Rakesh wrote, and “should be a tailwind for Micron and WDC.” Meanwhile, regarding graphics processing unit (GPU) pricing, Rakesh thinks the trends continue to suggest “tight inventory and availability.” Accordingly, he sees upside potential for Nvidia’s and AMD’s GPU segments for the December and March quarters. “We believe it is key to understand that pricing reflects more of a stronger GPU demand and tight GPU inventory than a pricing tailwind,” he added. Nvidia shares are up 113% over the last 12 months, while AMD’s stock is up 28%. The Philadelphia Semiconductor Index has risen 49% in that time, compared with a 24% gain for the S&P 500 .
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