** TD Cowen expects US semiconductor companies' quarterly earnings to be 'fine on paper' and annual outlook from cos to be a 'wild card' given potential pressure on margins and revenue from tariffs
** Nvidia NVDA.O remains brokerage's top pick; it also prefers AMD AMD.O, Broadcom AVGO.O and Credo CRDO.O
** Nvidia shares flat in premarket trading
** AMD and Broadcom down between 1% and 1.5%; Credo falls ~5%
** Trump's "reciprocal" tariffs on dozens of countries took effect on Wednesday, including a 104% duty on Chinese goods
** "Tariffs throw a significant wrench into what was already likely a volatile set of earnings" - TD Cowen
** NVDA and AMD set to report quarterly results on May 28 and May 6 respectively
** The Philadelphia Semiconductor index .SOX has dropped 17% since 31 March, taking losses so far this year to 28.5%
** Brokerage cuts PTs of following semiconductor stocks:
RIC | New PT | Prior |
AIP | $8 | $13 |
AVGO | $200 | $265 |
CRDO | $50 | $85 |
LSCC | $50 | $75 |
MPWR | $600 | $750 |
MRVL | $60 | $95 |
NVDA | $140 | $175 |
QCOM | $160 | $195 |
(Reporting by Rashika Singh in Bengaluru)
((Rashika.Singh@thomsonreuters.com;))
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