Wall Street Analyst Sees Between 19% to 37% Upside in These 5 AI Chip Stocks
Piper Sandler initiated coverage of Nvidia, Broadcom, AMD, Arm, and Marvell, all with "overweight" ratings.
Overview
Analysts at Piper Sandler started coverage of several artificial intelligence (AI) semiconductor stocks, forecasting between 19% and 37% upside in Nvidia (NASDAQ: NVDA), Broadcom (NASDAQ: AVGO), Arm Holdings (NASDAQ: ARM), Advanced Micro Devices (NASDAQ: AMD), and Marvell Technology (NASDAQ: MRVL). All five stocks received "overweight" ratings.
Piper Sandler analysts David O'Connor and Zackary Altman argued that "AI is starving for more compute capacity," pointing to surging hourly pricing from neocloud companies for graphics processing unit (GPU) usage. They noted that hourly pricing for Nvidia's four-year-old H100 GPUs has climbed 30% from $2.00 in December to $2.60 currently. At the same time, AI chips are largely sold out for next year, and order books are already full for 2028.
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Originally published at www.fool.com.
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