Nomura Instinet analyst David Wong initiated coverage of Nvidia (NVDA - Get Report) , Advanced Micro Devices (AMD - Get Report) , and Intel (INTC - Get Report)  on Wednesday, with two of those rated as buys and one neutral. 

Nvidia shares rose 3.48% to $189.36 apiece in premarket trading. AMD rose 9.50% to $29.29 in premarket trading. Intel rose 2.57% to $55.78 before the opening bell. 

Wong is initiating Nvidia coverage with a neutral rating and a $147 price target, which is 19.6% above the stock's current level. The valuation is 26 times Wong's 2021 earnings per share expectation of $5.65, which he notes is a lower multiple than the stock's median multiple over the past 12 months, which is justified by "uncertainty about gaming GPU demand," Wong wrote. 

"We believe Nvidia's Gaming segment revenues could drop by 5% or more in FY20, driven by an inventory correction," he added. 

As for AMD, Wong has a buy rating and a price target on the stock of $33, 20% above the stock's current level. "We think that AMD's high revenue growth and rapidly improving profitability justify what we consider to be an elevated multiple on an EPS estimate that may still be a fair amount below the company's earnings power," Wong said. He highlighted that AMD looks to have a strong footing in two areas of the microprocessor GPU markets, compared to Nvidia and Intel, which each are strong in just one area. Plus, "AMD has an opportunity to gain [market] share," Wong thinks. 

Wong initiated coverage on Intel with a buy rating and a $65 price target, about 20% above the stock's current level. "Margin expansion and share count reductions potentially driving EPS growth above top-line growth" is the main duo leading Wong to his valuation. Simply put, profit margins could expand, making profits healthier. Meanwhile, a share count reduction, through buybacks, would lift earnings per share. Wong noted Intel's long history of share buybacks and thinks it can return $16 billion to shareholders through buybacks. 

Nvidia is a holding in Jim Cramer's Action Alerts PLUS member club . Want to be alerted before Jim Cramer buys or sells NVDA? Learn more now.

Will I Have Enough Money to Retire?

Want to learn about retirement planning from some of the nation's top experts? Join TheStreet's Robert "Mr. Retirement" Powell live in New York on April 6 for our Retirement Strategies Symposium. For a limited time, tickets are available for $99 for this full-day event. Check out the agenda, learn about the speakers and sign up here.