Investors Shift From Nvidia to Micron After $50 Billion Guidance
NVDA•Nvidia stock has dropped this week as investors rotate into Micron, which guided for $50 billion in revenue and $31 adjusted EPS and trades at nine times forward earnings, below Nvidia’s P/E. Goldman Sachs named Nvidia among its top semiconductor picks over Intel, citing better revenue visibility after Intel’s recent rally.
1. Nvidia Stock Slide
Nvidia shares have declined in recent trading sessions as investor focus shifted toward cheaper memory chipmakers. The sell-off reflects concerns over valuation gaps between Nvidia’s lofty multiples and more affordable peers.
2. Micron’s Strong Guidance
Micron reported a fiscal fourth-quarter revenue target of roughly $50 billion and $31 in adjusted EPS, sending its shares sharply higher. The company trades at about nine times forward earnings, undercutting Nvidia’s P/E and drawing capital away from GPU makers.
3. Goldman’s Semiconductor Rankings
Goldman Sachs initiated coverage on Intel with a Neutral rating but highlighted Nvidia, Broadcom and AMD as more compelling risk-reward profiles. The bank cited Nvidia’s stronger revenue visibility as a key driver for its top-pick status over Intel.
