Bank of America top analyst Vivek Arya shared new updates on Nvidia (NVDA), Advanced Micro Devices (AMD), and Broadcom (AVGO), pointing to steady AI demand and a healthy outlook for major chip suppliers. The firm said AI spending should stay strong into 2026 as cloud companies continue to build out data center capacity.
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Bank of America maintained Buy ratings on all three stocks.
Nvidia: Strong AI Demand Still Leads the Story
Arya said Nvidia continues to see very strong demand for its AI chips, with supply still the main limit. He also noted that Nvidia could get a lift when OpenAI rolls out GPT-5.2, since new AI models often lead to higher GPU orders.
Bank of America keeps Nvidia as one of its top picks, backed by solid demand from cloud providers and government customers.
AMD Could Benefit If OpenAI Demand Picks Up
Arya said AMD may benefit as more investors rotate back into chip stocks. He added that interest in AI chips remains high, and AMD is gaining attention as a second supplier to Nvidia.
However, he warned that companies tied too closely to OpenAI or Oracle (ORCL) could face uneven demand — and AMD falls into that group. This means AMD’s growth may depend on how steady orders remain from these major customers.
Broadcom: Earnings Are the “Main Event”
For Broadcom, Arya said the upcoming earnings report is the “main event,” with potential upside from the company’s work on TPUs (Alphabet’s (GOOGL) custom AI chips). Notably, Broadcom will report its fourth-quarter Fiscal 2025 results on December 11. Analysts expect the company to report earnings per share (EPS) of $1.87 on revenues of $17.5 billion.
Bank of America also said Broadcom is in a strong spot because it sells networking gear and custom silicon that help AI systems run smoothly. The analysts expect ongoing demand for faster switches and custom accelerators as data centers expand their AI clusters.
Arya added that Broadcom’s role in connecting AI systems gives it a more stable setup, since data centers will continue to need faster and more reliable networking as AI workloads rise.
Which Chip Stock Is the Best Buy Right Now?
Turning to Wall Street, out of the three stocks mentioned above, Nvidia offers the highest upside at about 39% and carries a Strong Buy rating from analysts. AMD follows with about 28% upside and a Moderate Buy consensus.
Meanwhile, Broadcom also holds a Strong Buy rating but shows the lowest upside in the group at around 6%. However, it scores highest on the Smart Score, suggesting strong support from analysts, hedge fund activity, and market signals.
