Intel (INTC) and Advanced Micro Devices (AMD) could gain in the second half of the year, according to Melius Research, which referred to the companies as “AI Laggards” for the start of the year.
Intel shares were up more than 5% in Monday afternoon trading, narrowing their more than 30% year-to-date loss. AMD shares were up 3%, with the stock gaining 20% since the start of 2024. While the chipmaker has gained more than the S&P 500 index‘s nearly 17% gain year-to-date, it significantly lags Nvidia (NVDA), which has more than doubled in the same period.
Melius analysts noted that the “AI winners” of the first half of 2023 experienced a pause in the last six months of 2023, while first-half “underdogs” gained.
They cited the VanEck Semiconductor ETF (SMH), which gained 50% in the first half of 2023, but rose only 15% in the second half of 2023. Meanwhile, …