Morgan Stanley analyst Joseph Moore downgraded shares of Nvidia Corp. (NVDA) and Intel Corp. (INTC) to equal weight from overweight Tuesday, writing that he's shifting his chip-sector preferences toward names that stand to benefit from a broader economic recovery. He previously showed a preference for stocks that could benefit from remote-working trends. Nvidia shares are off 0.6% in Tuesday morning trading while Intel shares are up 1.7%. Moore wrote that in a recent Nvidia note, he drew comparisons between Nvidia and high-growth software names to justify his price target. "As much as we like the longer-term growth story, that's simply not a comparison that we're totally comfortable with," he said. On Intel, Moore wrote that consensus estimates seem low for the second-half of this year but "the growth deceleration implied by consensus numbers does imply significant risk to CY21." He upgraded shares of Lam Research Corp. (LRCX), Qualcomm Inc. (QCOM), and Qorvo Inc. [s QRVO] to overweight from equal weight. Nvidia shares have added 84% over the past three months as Intel's stock has rallied 38%. The S&P 500 is up 32% in that time as the Dow Jones Industrial Average , of which Intel is a component, is up 31%.
-Emily Bary; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
June 16, 2020 10:09 ET (14:09 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.