Advanced Micro Devices, Marvell to benefit as semiconductor industry sees continued growth in 2022, GS says
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Advanced Micro Devices (NASDAQ:AMD) and Marvell Technology (NASDAQ:MRVL) are two of the top semiconductor stocks for 2022, according to Goldman Sachs, as the industry is fueled by trends such as artificial intelligence, electric vehicles, factory automation and web 3.0.

AMD (AMD) is listed as the top pick by Goldman's Toshiya Hari as the company is likely to continue growing its market share and gross margins, driving earnings higher.
AMD (AMD) shares rose 57% in 2021, compared to a 41% rise for the broader coverage universe, but Hari believes there is "significant upside" to Wall Street estimates as he thinks the market is under-appreciative of AMD's (AMD) gains.
He cites AMD's (AMD) design wins, particularly in the server CPU space, for cloud and enterprise customers, potential accelerating in supply growth, upside to gross margins, operating expense leverage and stronger forward earnings per share.
"Similar to the last few years, we expect positive earnings revisions to drive the stock higher as we progress through the year," Hari wrote.
Hari has AMD (AMD) shares on the Conviction Buy List, with a $170 price target, roughly 20% higher than where the stock is currently trading.
Marvell (MRVL) was the fourth-best performing stock in Hari's coverage, as the company benefited from "strong organic growth" and additive M&A, notably Inphi.
The near-term growth is "well telegraphed," Hari admits, as the company's management has guided to 30% revenue growth year-over-year for fiscal 2023, but its long-term growth, led by the cloud, 5G infrastructure buildout and automotive is "not fully priced in."
"With ~80% of revenue rooted in cloud, enterprise, and communications infrastructure, we expect the stockâs valuation premium to hold and for the company to grow revenues and expand profits at a healthy clip into its multiple," Hari added in the note.
Goldman Sachs has a $98 price target on Marvell (MRVL), up from $95, implying roughly 10% from current levels.
In addition, Teradyne (NASDAQ:TER), Impinj (NASDAQ:PI), Micron (NASDAQ:MU), ON Semiconductor (NASDAQ:ON), Qorvo (NASDAQ:QRVO), Analog Devices (NASDAQ:ADI) and Broadcom (NASDAQ:AVGO) are also rated "buy" at Goldman Sachs.
Late last month, Advanced Micro Devices (AMD) said that its deal for Xilinx (NASDAQ:XLNX) is expected to close in the first-quarter of 2022, as both companies have not yet received all of the approvals they need to complete the acquisition.