Antonio Bordunovi
What are the best hardware stocks right now?
We asked Seeking Alpha analysts Livy Investment Research and Kenio Fontes for their picks.
Livy Investment Research: AI infrastructure providers, including chip and server makers, are the hottest hardware stocks right now, with Advanced Micro Devices (NASDAQ:AMD) standing out as one of the most undervalued players poised for further upside.
Despite China-related headwinds, like the Instinct MI308 export ban, AMD (NASDAQ:AMD) remains well-positioned for a strong recovery, supported by resilient AI spending confirmed by hyperscalers in the latest earnings season. The impending upgrade cycle to AMD’s (AMD) Instinct data center GPUs critical for next-gen AI applications should further fuel capitalization of this opportunity.
The MI350 series debut in 2H25 and more powerful MI400 in 2026 will be key to narrowing the performance gap with Nvidia (NASDAQ:NVDA). AMD’s (AMD) new rack-scale MI400 solutions developed via ZT Systems will also broaden its reach into the AI infrastructure TAM.
Combined with continued demand resilience for EPYC CPUs, these factors should drive additive growth and margin accretion in its most profitable data center segment. With multiple fundamental tailwinds ahead, AMD (AMD) is primed for a V-shaped recovery from current levels.
Kenio Fontes: Nvidia (NASDAQ:NVDA) certainly stands out when it comes to hardware. Although we have relevant uncertainties such as tariffs and restrictions, the last quarter and the outlook for Q2 showed us that growth may have slowed down a little, but it’s far from over. And although I much prefer it when the price is around $100 for the greater margin of safety, $140 still offers a justifiable valuation, as the ~25x earnings for fiscal year 2027 point out.
Another honorable mention is ASML (NASDAQ:ASML), which not only manages to ride the semiconductor trend in the long term, but also has a near monopoly in EUV, as well as a reasonable valuation.
More on NVIDIA, Advanced Micro Devices, etc.
- AMD: Aggressive M&A As A Sign Of Desperation
- AMD Stock Continues To Be A No Brainer (Technical Analysis)
- ASML: Not Even The Geopolitical Storm Can Stop This Machine
- Top gainers & losers in tech sector this week: ON leads the chart, while IT trails
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