Investing.com -- JPMorgan and Citi analysts see the recent pullback in Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD) as buying opportunities, citing strong growth drivers for both semiconductor companies.
According to Citi, Nvidia's upcoming GTC conference next week will be a key event for investors.
"We believe the investor focus is on Blackwell Ultra and Rubin specs, specifically inference performance vs the custom ASIC solutions," said the bank.
Citi sees the stock as attractive at current levels, stating that Nvidia is "trading below historical P/E trough of 19x" and that concerns over AI export restrictions are fully derisked.
However, the firm added that "investors are looking for a clearance event on the AI restrictions and tariffs impact to gross margins."
JPMorgan (NYSE:JPM), meanwhile, expressed strong confidence in AMD’s growth outlook, particularly in AI-related markets.
"We held investor meetings this week with AMD CEO Lisa Su, and we came away with the view that the team is incrementally more confident on driving strong double-digits% growth (>20% in our view) and stronger earnings growth in CY25," said the firm.
JPMorgan highlighted AI GPU sales as a major growth driver, estimating ">60% growth in AI GPUs this year" as AMD prepares for a "strong 2H ramp of its next-gen MI350 accelerator platform."
Both firms emphasized long-term strength in AI computing, with Citi expecting Nvidia to provide more details on its next-gen Rubin chip and AMD already securing "a multi-billion-dollar order" for its MI355X GPUs from Oracle (NYSE:ORCL).
