SA analyst upgrades/downgrades: AMD, NVDA, SPG, OXY

[Man looking at currency trading app on his smart phone from his home office]
Alistair Berg

Seeking Alpha analyst Luuk Wierenga changed outlook for Simon Property Group (SPG [https://seekingalpha.com/symbol/SPG]) pivoting from a previously bearish stance to a more balanced assessment. JR Research has similarly shifted on Occidental Petroleum (OXY [https://seekingalpha.com/symbol/OXY]), recognizing the company’s debt reduction progress and operational resilience despite sector headwinds. Meanwhile, tech giants Nvidia (NVDA [https://seekingalpha.com/symbol/NVDA]) and Advanced Micro Devices (AMD [https://seekingalpha.com/symbol/AMD]) have seen analyst downgrades, with both facing concerns over competitive positioning and valuation in the semiconductor space, particularly regarding AI chip exports to China and data center market competition.

UPGRADES

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Simon Property Group, Inc. (SPG [https://seekingalpha.com/symbol/SPG]): Upgrade from Sell to Hold by Luuk Wierenga [https://seekingalpha.com/article/4814440-simon-property-group-elevating-sell-call-more-balanced-re-evaluation-rating-upgrade]. The analyst has reconsidered his previous valuation concerns, adopting a more nuanced approach that considers both company fundamentals and market psychology.
_“Investing is not just about a company’s fundamentals. It is a balancing act between personal preferences, psychology, and the fundamental analysis of a stock… Even though Simon Property Group is a stock with higher volatility, you can still see that it has been able to grow its FFO per share by around 190% in the last 20 years. A great track record!”_
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Occidental Petroleum Corporation (OXY [https://seekingalpha.com/symbol/OXY]): Upgrade from Sell to Hold by JR Research [https://seekingalpha.com/article/4814496-occidental-petroleum-bottom-might-really-be-in]. The analyst cites Occidental’s disciplined capital allocation and improved cost efficiencies as key factors mitigating oil price volatility and protecting margins.
_“While I’m not (yet) prepared to upgrade OXY back into the bullish zone, I believe the risk/reward seems more balanced now. While the structural headwinds afflicting the sector’s recovery aren’t expected to be resolved soon, OXY’s disciplined capital allocation and ongoing debt reduction should assuage investors of its ability to sustain its FCF profitability.”_

DOWNGRADES

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NVIDIA Corporation (NVDA [https://seekingalpha.com/symbol/NVDA]): Downgrade from Buy to Hold by Envision Research [https://seekingalpha.com/article/4814556-nvidia-china-export-buy-the-rumor-and-sell-the-news-rating-downgrade]. The analyst believes that the positive catalyst of renewed Chinese exports is now fully priced in, with the benefits likely to be less substantial than markets expect.
_“I am afraid that the income boost from the resumed export to China won’t be as large as the market hoped for. The revenue contribution from the China market is not huge to start with… I am also afraid the market overestimates the potential demand for NVDA’s AI chips in China after the export resumes. Just like the U.S., the Chinese government is also concerned about the implications of these chips on national security.”_
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Advanced Micro Devices, Inc. (AMD [https://seekingalpha.com/symbol/AMD]): Downgrade from Strong Buy to Neutral by Julian Lin [https://seekingalpha.com/article/4814641-amd-market-says-time-to-get-out-rating-downgrade]. Despite AMD’s solid revenue growth, the analyst expresses concern about the widening competitive gap with Nvidia in the critical data center segment.
_“The stock has re-rated sharply higher, almost as if implying that the company is about to reach a breakthrough in its data center business. The numbers, however, do not indicate anything like that, even as the stock valuation more or less requires it… NVDA continues to grow at a sharply faster pace, which suggests a widening competitive gap. I suggest investors look elsewhere for bargains among the high quality space.”_

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