Some tech stocks are due for outperformance heading into year’s end, according to UBS. Heading into the fourth quarter of 2024, the firm has unveiled their 11 highest conviction picks in the technology, media and telecommunications space, including one semiconductor name in particular that can serve as another option to Nvidia . This comes a week after the AI darling wiped nearly $300 billion off its market cap – the biggest one-day drop in U.S. history. Nvidia dragged other chip stocks down with it, with the VanEck Semiconductor ETF (SMH) suffering its worst day since March 2020. Here are some key names on the list. Though Nvidia has dominated the chip market, UBS said rival chipmaker Advanced Micro Devices remains competitive, especially when it comes to AMD’s roadmap for graphics processing units (GPUs). “Although AMD’s timeline is roughly 9 months behind NVDA from a compute standpoint, the company is superior in memory bandwidth which is a greater priority for inference,” analyst Timothy Arcuri wrote in the note. “We believe demand for accelerators is shifting towards rack-scale systems, to which AMD is prioritizing through key acquisitions – such as ZT systems – that will streamline development for full system solutions including liquid cooling.” Seeing AMD’s potential for playing a more influential role in the AI arms race, the firm has a buy rating on the stock and a $210 price target. That implies 47% upside from Tuesday’s close. Wall Street is also bullish on the chipmaker, with 41 of the 50 analysts covering the name issuing a strong buy or buy rating, according to LSEG. The average price target is $186.63, implying more than 30% upside. In the IT hardware and electronics manufacturing services sector, UBS named Dell Technologies , given a PC refresh cycle and developing strength in AI optimized servers. The firm anticipates that those catalysts combined with stronger growth in the company’s storage business should drive at least 7% compound annual growth rate through 2027. UBS has a buy rating on the stock, and its target implies more than 48% upside from Tuesday’s close. This year, shares have risen more than 39%. DELL YTD mountain Dell Technologies, year-to-date Not only that, the stock snapped a four-day losing streak on Monday, jumping nearly 4% in the session following the announcement that it – along with Palantir – would be joining the S & P 500 . According to S & P Global, Dell will be replacing Etsy before market open on…
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