JPMorgan (JPM) is bullish on select semiconductor stocks ahead of earnings season, noting that strong execution, solid demand, and positive guidance could sustain momentum in the chip sector throughout the year. The investment firm highlighted Nvidia (NVDA), Broadcom (AVGO), and Micron (MU) as its top picks. In a recent note, five-star analyst Harlan Sur added that the semiconductor rally still has room to run, even amid high expectations heading into earnings.
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JPMorgan also highlights Marvell Technology (MRVL), Analog Devices (ADI), KLA Corp (KLAC), and Synopsys (SNPS). Among small-cap stocks, MACOM Technology Solutions (MTSI) and Astera Labs (ALAB) are JPMorgan’s favorites, benefiting from the AI data center expansion.
Why JPMorgan is Bullish on AI Chip Sector
Sur expects companies to report in-line or better results and provide positive guidance for Q1 and the full year. This should continue the trend of upward earnings revisions and help support stock gains through the rest of the year. In addition, he sees strong upside in the AI accelerator space, with a staggering 50% compound annual growth rate and over $200 billion in spending in 2025.
For context, the AI accelerator market makes specialized chips used in servers, data centers, and cloud platforms to speed up AI applications.
But Sur adds a note of caution. While demand is solid and inventories are low, rising memory prices could weigh on PC and smartphone sales later this year.
JPMorgan’s Top 3 Picks:
1. Nvidia (NVDA)
Nvidia’s Q4 FY2026 earnings are scheduled for February 25. The company dominates around 80–90% of the AI accelerator market, making it the key player in AI data centers. Strong demand from major cloud companies, along with its CUDA software and ecosystem, keeps customers loyal. While its Blackwell platform is scaling up, the next-gen Vera Rubin platform is expected to cut AI processing costs significantly.
On Wall Street, Nvidia stands out, with analysts projecting about 43% upside and a Strong Buy rating.
2. Broadcom (AVGO)
Broadcom will release its Q1 FY26 earnings on February 26. Broadcom may not make flashy GPUs, but it provides the essential custom chips and networking gear that power massive AI systems. It controls about 55–60% of the custom AI chip market. CEO Hock Tan says AI chip sales, up 74% year-over-year, are driving record revenue—a trend expected to continue.
According to analysts, Broadcom also has a Strong Buy rating and roughly 41% upside.
3. Micron (MU)
Micron is scheduled to report its Q2 FY26 earnings on April 1. Micron’s stock has jumped 40% year-to-date due to high demand for high-bandwidth memory (HBM) in AI data centers. The company can currently meet only half to two-thirds of its major customers’ demand.
On Wall Street, MU stock holds a Strong Buy rating, but near-term upside looks limited after the recent rally. At $374.35, Micron’s average price target suggests about 6% downside from current levels.
Which Is the Best AI Chip Stock, According to Analysts?
Using TipRanks’ Stock Comparison Tool, we compared leading AI chip stocks to see which one offers the highest upside potential based on Wall Street analyst forecasts. Investors can dig deeper to decide which AI chip stock best fits their strategy. Below is a screenshot for reference.
