Robert W. Baird analyst Tristan Gerra names Nvidia (NVDA) and Micron (MU) as his top semiconductor picks for 2026. He expects strong artificial intelligence (AI) demand in 2026, and cites Micron’s recent beat-and-raise quarter as proof for his optimistic outlook.
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Gerra raised price targets on NVDA and MU shares after their solid quarterly results, while maintaining Buy ratings. He sets a $275 price target on NVDA, implying 51.9% upside potential, and a $443 price target for Micron, which implies 66.6% upside potential from current levels.
Gerra is a five-star analyst on TipRanks, ranking #410 out of 10,202 analysts tracked. He has a 56% success rate and an average return per rating of 14.90%.
Nvidia Stock: Blackwell Demand in Focus
Gerra highlighted that demand for Nvidia’s Blackwell AI chips now exceeds supply, mirroring the shortages seen in early 2024. He expects Nvidia to deliver exceptional results and stay ahead of competitors through 2026 and 2027. Heading into 2026, Gerra anticipates attention to shift to Nvidia’s execution and capacity at its key chip producer, Taiwan Semiconductor Manufacturing (TSM).
Gerra noted that the combination of insatiable AI demand and Nvidia’s unmatched architecture leadership, which has been a hallmark since 1999, calls for expanding valuation multiples ahead. Notably, Nvidia CEO Jensen Huang stated that Nvidia has about $500 billion in orders for its upcoming Blackwell and Rubin chips, aligning with Gerra’s optimistic view for the company’s future potential.
Micron Stock: Booming Demand for Memory Chips
Gerra favors Micron due to booming AI demand for memory chips in coming years. He points to better products and a lead in high-profit areas like LPDDR5 memory, which powers fast, energy-saving chips in phones, AI, and high-end apps.
Gerra stated that Micron meets only 50% to 66% of demand right now, the tightest ever, but he remains positive on 2027, driven by the launch of new GPUs and XPUs that need more high-bandwidth memory (HBM).
He predicts peak earnings of $42 per share in 2027, with prices for DDR5 and NAND dropping mid-year, but strong margins for the next six quarters. He also believes that Micron’s $20 billion capex plan for next year is a smaller jump than this year and fits normal levels at 26% of expected sales.
NVDA or MU: Which Is the Best Semiconductor Stock?
We used the TipRanks Stock Comparison Tool to determine which stock is currently preferred by Wall Street.
Analysts have assigned a “Strong Buy” consensus on both Micron and Nvidia, with NVDA stock offering a higher upside potential between the two.
