Mizuho is positive on semiconductor stocks in 2026, driven by continued demand tied to artificial intelligence. In its latest outlook, the firm said AI-related chips and equipment should continue to support the sector, even as gains are expected to be smaller than last year. The firm named Nvidia (NVDA), Lumentum (LITE), and Broadcom (AVGO) as its “top stock picks for 2026,” citing strength across AI accelerators, optical networking, and advanced chips.
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Beyond its top picks, Mizuho also pointed to Microchip Technology (MCHP) and Lam Research (LRCX) as additional stocks to watch in 2026. The firm said demand for GPUs and custom AI chips remains strong, supporting Nvidia and Broadcom, while faster AI networking speeds such as 800G and 1.6T should benefit optical players like Lumentum.
Outside of AI chips, Mizuho sees wafer fab equipment and memory as key winners, helped by strong pricing in DRAM and NAND. The firm remains positive on Micron (MU) and SanDisk (SNDK), as demand tied to AI data centers continues to grow. That said, Mizuho struck a more cautious tone on autos, analog chips, PCs, and smartphones, citing softer demand and high inventory levels.
Overall, the firm believes semiconductor valuations remain attractive compared with the broader market, with AI-focused segments continuing to lead in 2026.
Which Chip Stock Is Best to Buy Now?
We use the TipRanks Stock Comparison tool to see how Wall Street analysts are rating Nvidia, Lumentum, and Broadcom, and which company they believe has the strongest upside.
