The past two years have generally favored one sector of the stock market: the technology sector, with a certain amount of attention directed to the semiconductor industry. As in any popular market cycle, there was a popular name that investors chose to keep their eyes on: Nvidia company Nasdaq: NVDA. However, the cycle has ended, and now the stock has started to calm down according to the recent price action.
Over the past three months, an entire quarter, NVIDIA stock’s performance has hovered between a negative 4% and positive 8% performance, which can be assumed to be flat at best. All this while other names in the field of quantum computing captured attention and performance, e.g Rigetti Computing Company Nasdaq: RGTIgiving semiconductors time to adjust for any opportunities for mispricing.
That’s why stocks that lag behind the NVIDIA wave may see their time in the coming months, as these adjustments bring a sense of reality back to the market. By meeting these criteria, investors can find potential buying opportunities in names such as Advanced Micro Devices Company Nasdaq: AMD In today’s discounts or even some companies that serve as a pivotal support function for the chip industry, e.g Excelis Technologies Inc Nasdaq: ACLS and Kuliki & Sova Industries Nasdaq: Call.
AMD: Filling the gap in NVIDIA stock
When investors stake shares of Advanced Micro Devices for NVIDIA, a few things will immediately become clear regarding this key opportunity. First, it’s about the price action itself, with NVIDIA stock now trading at 90% of its 52-week high, while Advanced Micro Devices stock is down 53% of its 52-week high.
Today’s advanced micro-devices
Advanced micro devices
As of 01/17/2025 at 04:00 PM ET
- 52 week range
- $114.41
▼
$227.30
- P/E ratio
- 109.42
- Price target
- $178.61
Normally, when these large gaps in price action occur, the market must have a strong reason why the spreads are widening. Today, there seems to be nothing. In fact, investors could argue that advanced micro hardware should start to catch up to NVIDIA’s cooling price movement.
The reason is the earnings per share (EPS) growth forecasts coming from Wall Street analysts. For NVIDIA, analysts are forecasting up to $6.22 in EPS for 2026, delivering an expected growth rate of 27.5% for the next 12 months. On the other hand, Advanced Micro Devices is expected to generate up to $4.16 in EPS in 2026, a more attractive growth rate of 41.5%.
Since EPS and EPS growth typically lead to higher stock prices and valuations, it makes sense to see advanced micro hardware catching up with NVIDIA. This is especially true because the market is already willing to pay a price-to-earnings (P/E) ratio of 33.1x for advanced micro hardware compared to a 19.5x multiple for NVIDIA stock.
Some might call this expensive. Others will understand that the market will always be willing to pay a premium for stocks that it believes will outperform in the near future, confirming the thesis behind a potential buy into advanced micro devices.
Go sideways with Axcelis and Kulicke
Another severely neglected area of semiconductor popularity is the side industries that support the chip industry, such as manufacturers and machine providers. This is where Axcelis and Kulicke come into play for investors to consider another potential run for NVIDIA’s money.
Accelis Technologies Today
Accelis Technologies
As of 01/17/2025 at 04:00 PM ET
- 52 week range
- $66.75
▼
$158.61
- P/E ratio
- 10.59
- Price target
- $155.83
Investors can choose from two different settings here. Axcelis stock is trading lower on a price action basis, at just 46% off its 52-week high, giving investors a better risk-to-reward ratio to consider, as the limited downside pales in comparison to the potential upside.
Wall Street analysts have come up with a consensus price target of $155.8 per share for this company, calling for an upside of up to 115.5% from where it is trading today. This is great for investors to consider. On the other hand, Kulicke and Soffa stock offer a good setup for those who prefer momentum.
Kuliki and Suva industries today
Kuliki and Suva industries
As of 01/17/2025 at 04:00 PM ET
- 52 week range
- $38.20
▼
$56.71
- Dividend yield
- 1.73%
- Price target
- $52.40
Trading at 83% off its 52-week high, KLIC stock has a few more upsides up its sleeve, considering Wall Street analysts are now forecasting up to $2.82 in EPS for 2026, a growth rate of 59.3%. . This may explain the recent institutional buying activity in the stock.
Artemis Investment Management has decided to boost its holdings in Kulicke shares by up to 20.6% from January 2025, bringing its net position to a high of $9.9 million today. This move also serves as a barometer for investors to gauge how bullish participants are likely to turn bullish on this stock.
Before you consider advanced micro devices, you’ll need to hear this.
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