AI Chip Stocks Seen as Undervalued Ahead of 2027 Earnings

The AI semiconductor complex has been the market's most powerful earnings engine for three years running, and yet NVIDIA (NASDAQ: NVDA), Micron Technology (NASDAQ: MU), and Broadcom (NASDAQ: AVGO) all trade well below what their forward numbers arguably justify.

NVIDIA posted Q1 FY27 revenue of $81.615 billion, up 85.23% year over year, with Data Center revenue of $75.246 billion and networking growth of 199%. Yet shares are only up 7.77% year to date at $200.75.

The path for NVIDIA to hit $300 in 2027 is clear, as the company trades at roughly 40x trailing earnings. Q2 FY27 guidance calls for $91 billion in revenue at a 75% non-GAAP gross margin, and management has secured $119 billion in supply commitments. Four straight EPS beats, a fresh $80 billion buyback authorization, and the Vera Rubin ramp into 2027 give NVIDIA a credible runway to $300, a roughly 50% gain.

Micron is the cleanest AI beneficiary in the group, with fiscal Q3 revenue hitting $41.456 billion, a 345.72% jump, on gross margins that expanded to 84.6%. Q4 guidance calls for $50 billion in revenue and $31 in non-GAAP EPS.

Broadcom's AI silicon franchise is compounding faster than the market has priced in. Q2 FY26 AI semiconductor revenue reached $10.80 billion, up 143%, and Hock Tan guided Q3 AI revenue to $16 billion at over 200% growth.