The coronavirus outbreak creates risk for the graphics processing unit market, Nomura Instinet analyst David Wong tells investors in a research note. The analyst views gaming GPUs as a consumer discretionary item. Should coronavirus lead to any economic weakening in China, or in any other countries, there could be an impact in demand in many semiconductor end markets, Wong writes. He sees the consumer-related end markets as being most at risk. The analyst remains cautious on Nvidia (NVDA) with a Neutral rating. However, he reiterates a Buy rating on AMD (AMD), saying the company's market share gain potential in both microprocessors and GPU will drive growth through 2020.

TD Cowen raised the firm's price target on AMD to $200 from $185 and keeps a Buy rating on the shares. The analyst expect data center strength and "well-known softness elsewhere" when AMD reports Q1 results. The firm sees AMD as generating upwards of $10.00 in earnings per share by 2027, or a nearly 40% annual growth off of 2023. TD increased its MI300 2024 revenue estimate to $4.5B from $4B, saying ramps at several customers will continue to happen more quickly than typical. AMD remains one of its top picks.

Barclays analyst Tom O'Malley raised the firm's price target on Broadcom (AVGO) to $1,500 from $1,405 and keeps an Overweight rating on the shares after hosting management for meetings. Broadcom is one of the unique companies that has a comprehensive view of the semis industry while also capable of providing an "intimate look" at the artificial intelligence market via custom silicon, the analyst tells investors in a research note. The firm says management highlighted the company's inroads with the consumer-facing AI world, providing a differing viewpoint versus Nvidia's (NVDA) vision of the world - pointing to a two-part market of consumer and enterprise that could grow to a 50/50 split over time. Barclays came away from the meetings "with a valuable second opinion on the future of AI and a greater appreciation for the company's many ways to win."