- Advanced Micro Devices Inc (NASDAQ:AMD) and NVIDIA Corp (NASDAQ:NVDA) are likely to keep benefiting, BofA analyst Vivek Arya notes.
- The graphics chip market is "still early in the upgrade cycle." The second half of the year should grow more robust as supply and mix improve.
- Related Content: AMD Analyst Turns Bullish After 10 Years; 'Valuation Downright Attractive, Execution Stellar And Earnings Power Bankable'
- Analyst Vivek Arya, who has a Buy rating on both stocks, noted that the fourth-quarter gaming environment was "strong" with record discrete GPU sales of $3.66 billion, up 42% year-over-year, even with supplies falling 1% sequentially.
- "We expect supply could remain constrained into the 2H 2022, which, in our view, could drive stronger for longer sales growth," the analyst added.
- Price Action: AMD shares traded lower by 3.38% at $111.74 on the last check Wednesday.
