Shares of high-flying AI-levered chipmakers Nvidia Corp. (NASDAQ:NVDA) and Advanced Micro Devices, Inc. (NASDAQ:AMD) slipped in premarket trading on Tuesday.
The downside has come despite Mizuho Securities analyst Vijay Rakesh raising the price targets for both chip stalwarts. StreetInsider reported that Rakesh raised the price target for Nvidia to $920 and for AMD to $200.
The pullback despite the positive catalysts could be cooling off of buying interest following their recent run-up. Nvidia and AMD are up 45.9% and 16.6%, respectively, so far this year. This compares to the 5.3% gain for the S&P 500 Index and the 9.06% advance by the Philadelphia Semiconductor Index (NASDAQ:SOXX).
On Monday, Nvidia surpassed the market cap of Amazon and Alphabet briefly to be the third most valued global corporation.
Some of the weakness could be attributed to apprehensions ahead of the January inflation report due ahead of the market opening. In the event of a negative surprise, growth stocks such as Nvidia and AMD would get hammered.
Nvidia is scheduled to report its quarterly results on Feb. 21.
In premarket, Nvidia fell 0.38% to $719.90 and AMD lost about 1.10% to $170.02, according to Benzinga Pro data.
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