UBS reveals its top semiconductor stock for 2022

By:
on Dec 21, 2021
Listen
  • UBS named Nvidia Corporation its top semiconductor stock for 2022.
  • Jason Snipe says there are so many catalysts for Nvidia going forward.
  • Josh Brown discussed his outlook on NVDA on CNBC's "Halftime Report".

Follow Invezz on Telegram, Twitter, and Google News for instant updates >

Shares of Nvidia Corporation (NASDAQ: NVDA) bounced over 5.0% from their intraday low on Tuesday after UBS said the stock was its top pick for next year. Shareholders are also responding to a peer statement this morning that said chip shortage will ease in 2022.

Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins.

Jason Snipe agrees to the bullish call

Copy link to section

Analyst Timothy Arcuri cited stable revenue sources and exposure to artificial intelligence and edge computing as reasons for the bullish call. Agreeing to it, Odyssey Capital Advisors’ Jason Snipe said on CNBC’s “Halftime Report”:

AI, data centres, deep learnings; there are so many catalysts for this name going forward, just where they reside from a semi perspective. I think it will continue to run. At some point, valuation will matter, but Nvidia is worth the price of admission.

The Federal Trade Commission (FTC) has recently sued Nvidia to disable it from buying Arm – a British semiconductor and software design company. Snipe, however, is convinced the deal won’t go down.

Valuation is not the best way to look at Nvidia

Copy link to section

During the same interview, Josh Brown agreed that Nvidia wasn’t a cheap stock by a long stretch, but said valuation did not stand in its way this year, and it’s conceivable that it won’t in 2022 either.

GPUs will be on fire in 2022, almost no matter what happens in the broader economy. And then you think about the hyper-scale data centres; you need linear processors to power them. Nvidia is almost the only show in town, and it’s growing in a kegger that you can’t find anywhere else in tech.

Brown sees robotics, artificial intelligence, virtual reality, metaverse, and autonomous driving as strong long-term catalysts for Nvidia Corporation. The semiconductor company reported strong Q3 results last month.

Ad

Want easy-to-follow crypto, forex & stock trading signals? Make trading simple by copying our team of pro-traders. Consistent results. Sign-up today at Invezz Signals.

Learn more
USA Manufacturing North America Stock Market World