Nvidia and Micron Named Best Semiconductor Stocks for 2026 by Baird
Demand for AI-driven semiconductor chips is surging, pushing two major players into the spotlight. Nvidia has secured a record $500 billion in advance orders for its upcoming Blackwell and Rubin chip series. Meanwhile, Micron’s memory chips face unprecedented shortages as AI applications stretch supply to its limits.
Analyst Tristan Gerra has now named both companies as top investment picks for 2026, citing their dominance in the fast-growing AI market.
Nvidia’s CEO, Jensen Huang, confirmed the staggering demand during a recent announcement. The company’s Blackwell and Rubin chip families have already attracted $500 billion in pre-orders, reflecting their critical role in AI infrastructure. Gerra, an analyst at Baird, responded by raising Nvidia’s price target to $275—a 51.9% increase from current levels. He also forecast that the firm will retain its market-leading position through 2027.
Micron’s situation is equally striking. Its LPDDR5 memory chips, used in smartphones, AI systems, and high-end devices, are in such high demand that current production only covers 50% to 66% of market needs. This shortfall represents the tightest supply gap in Micron’s history. Gerra lifted the company’s price target to $443, predicting a 66.6% upside and peak earnings of $42 per share by 2027.
The analyst’s confidence stems from AI’s expanding footprint. Both Nvidia’s processors and Micron’s memory solutions are essential for training and running advanced AI models. With no signs of slowing demand, Gerra expects these shortages and order backlogs to persist well into the next two years.
Nvidia and Micron now stand as key beneficiaries of the AI boom. The former holds half a trillion dollars in chip orders, while the latter struggles to keep up with memory demand. Gerra’s upgraded forecasts underscore their central role in powering AI’s growth—with no immediate relief in sight for supply constraints.
