Artificial intelligence (AI) is reshaping industries, bringing a surge of innovation and disrupting traditional business models. A key player in this shift is the semiconductor sector, supplying specialized chips to meet the soaring demands of AI applications for robust computing capability and efficient data processing.
Over recent years, AI chip stocks have become a focal point for investors. In a recent research report, Bank of America Securities analyst Vivek Arya highlighted Nvidia Corp (NVDA) and Broadcom Inc. (AVGO) as top choices in the AI chip domain. Arya also pointed out Marvell Technology, Inc. (MRVL), Micron Technology, Inc. (MU), and Advanced Micro Devices, Inc. (AMD) as promising contenders—dubbed as “junior samurAI” picks.
AI Industry Potential
Vivek Arya emphasized possibilities for these companies to establish “profitable niches” as industry leaders NVDA and AVGO expand their market reach. Arya projected significant growth in the accelerator market, a critical component for advanced AI applications, estimating a potential doubling to $200 billion within three years. This creates ample opportunities for MRVL, MU, and AMD, which he rated as “Buy,” alongside NVDA and AVGO.
The five AI chip stocks identified by the Bank of America analyst this April present a compelling case for investors looking to leverage the AI upswing. Let’s dive deeper into each.
Nvidia Stands Tall
A stalwart in the gaming GPU and AI chip landscape since its inception in 1993, Nvidia Corp (NVDA) holds a dominant position with an approximate 80% market share in AI chips for cloud and data centers. With a market capitalization of $2.2 trillion, NVDA witnessed a 224% surge over the past 52 weeks and a 76.9% increase year-to-date.

NVDA has received favorable analyst coverage, with most of the 39 analysts rating the stock as “Strong Buy.” The stock’s average target price of $912.12 hints at a 4.3% upside potential from current levels, with a Street-high target of $1,200 suggesting a 37.2% surge.
Broadcom’s Run Continues
Established in 1961, Broadcom Inc. (AVGO) is a global technology leader offering semiconductor and infrastructure software solutions for various sectors. With a market cap of $620.7 billion, AVGO has seen its stock climb by 17.9% year-to-date and 111.7% over the past 52 weeks.

Analysts hold a consensus “Strong Buy” rating for Broadcom stock, with an average target price of $1,485.05, signaling a potential 12.5% uptick from current levels.
Marvell Technology: Rising Star
Emerging in 1995, Marvell Technology, Inc. (MRVL) delivers data infrastructure semiconductor solutions across various segments, from data centers to network edges. Valued at $62.9 billion, MRVL has seen its stock surge by 83.5% over the past year and 19.5% year-to-date.

Marvell Technology stock maintains a consensus “Strong Buy” rating, with an average target price of $88.37, reflecting a potential 22.7% upside from current levels.
Micron Technology’s Memory Lane
Pioneering since 1978, Micron Technology, Inc. (MU) is a prominent provider of memory and storage solutions for diverse industries. With a market cap of $136.8 billion, MU has shown commendable growth, rising by 113.9% over the past year and 46.9% year-to-date.

BofA suggests Micron Technology holds potential in expanding its high-bandwidth memory (HBM) market share. Analysts maintain a consensus “Strong Buy” rating for MU, with an average target price of $124.38.











