The most promising AI chip stocks: NVIDIA and Broadcom!
Truist raised its target price for NVIDIA from $470 to $545 and raised its target price for Broadcom from $890 to $942.
Truist analysts believe that Nvidia and Broadcom have the greatest potential for growth in the AI chip sector, with the largest increase in demand.
Raising target prices for Nvidia and Broadcom
Last Friday, Truist analysts reiterated their "buy" rating on Nvidia and Broadcom stocks.
They also raised Nvidia's target price from $470 to $545 and Broadcom's target price from $890 to $942.
The analyst cited a conversation with a semiconductor buyer, stating that these two chip manufacturers are the only companies in the industry that currently have "clear upward potential."
After speaking with several industry insiders, the analyst is increasingly optimistic about Nvidia's AI business in data centers. He believes that Nvidia may raise prices in the coming quarters to take advantage of the strong demand for its chips in the market.
Generative AI heavily relies on Nvidia's products, which is a trend this year.
For Broadcom, Stein believes that strong orders for AI chips come from semiconductors internally designed by Alphabet-C.
Wall Street bullish on Nvidia and Broadcom
Wall Street is generally bullish on Nvidia and Broadcom stocks.
According to FactSet data, among analysts covering Nvidia, 86% have a "buy" or equivalent rating on its stock, while 12% have a "hold" rating.
In contrast, approximately 81% of analysts have given a buy rating to Broadcom stock, while 15% have given a hold rating.
