NVIDIA Corp (NVDA)

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Semiconductor Watchlist: Nvidia Challenges Intel and AMD
By: TheStreet | April 15, 2021

• See buy or sell recommendations for Qualcomm, Nxp, Broadcom, Taiwan Semiconductor, and more semiconductor stocks.

The semiconductor sector remained hot in the first quarter of 2021, returning more than 12% and positioning itself among the market's leaders.

The rally could continue well into the summer, wrote David Dierking of ETFFocus on TheStreet. "If you were on the wrong side of the semiconductor trade in Q1 and you held the Direxion Daily Semiconductor Bear 3x Shares ETF (SOXS) throughout, you would have lost more than 45%," he added.

However, the recent semiconductor chip storage made some waves in the sector. President Joe Biden hosted a semiconductor summit at the White House Monday to discuss the shortage impacting many industries, including the auto industry.

"I think it's time that the Taiwanese start playing ball. I think they spend too much time trying to cater to China, and not enough time trying to cater to us. It is vital that they send chips to GM (GM) and Ford (F)," said the founder of TheStreet Jim Cramer.

"We can't have people laid off or out of work because of GM and Ford's problems with a few chip companies. I hope that President Biden lobbies for all the chip companies to make the chips that we need. It's time," Cramer added.

In February, chipmaker Nvidia (NVDA) reported fiscal-fourth-quarter results that topped analyst estimates for both earnings and revenue. And, it continually gained significant momentum throughout the first quarter of 2021 amid the shortage.

Cramer said Monday that Nvidia isn't only challenging the likes of Intel (INTC) and Advanced Micro Devices (AMD) -- it's become the most valuable semiconductor company of our day.

For more in-depth coverage of the semiconductor sector including trading recommendations and investment strategies, follow Eric Jhonsa on Real Money.

Here is a list of the semiconductor stocks to watch and their performance by percentage change at the close of trading on Wednesday, Apr. 14:

Nvidia Corp | +8.66% 5-Day

Chipmaker Nvidia (NVDA) announced Monday it was offering its first server microprocessors, a move that will further heat up its rivalry with Intel.

Nvidia said it will release its Grace server processor in 2023. It is designed to handle tasks like training artificial intelligence algorithms.

The chip is based on technology from the United Kingdom's Arm Ltd. In September, Nvidia said it had reached a deal to acquire Arm from Softbank for $40 billion. Arm's technology goes into chips powering billions of devices shipping each year -- everything from smartphones to video cameras to hard drives to washing machines.

Cramer said it's a very lucrative enterprise market for Nvidia and has been singing the praises of the company for a while now. "Nvidia is offering an unbeatable chip for a data center that is much faster than anybody else has," said Cramer.

TheStreet Quant Ratings rates Nvidia as a Buy with a rating score of B.

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