Piper Sandler Identifies 5 AI Chip Stocks Poised for 19-37% Growth

A Wall Street analyst has identified five AI chip stocks that are poised for significant growth. The analyst, David O'Connor and Zackary Altman of Piper Sandler, have assigned 'overweight' ratings to Nvidia (NVDA), Broadcom (AVGO), Arm Holdings (ARM), Advanced Micro Devices (AMD), and Marvell Technology (MRVL). They predict a 19-37% upside in these stocks.

The analysts argue that AI is driving insatiable demand for compute power, leading to strong revenue growth. Nvidia has the most upside among the group, with a predicted $300 price target, representing 37% above its current price. Broadcom has a 27% potential upside, while Arm Holdings and Marvell Technology have 26% and 19% potential upturns respectively. Advanced Micro Devices is forecast to see 19% growth.

Piper Sandler believes that the compute market will grow fivefold by 2030, with $2 trillion of that going towards AI chips. They also note that Nvidia holds about 80% market share in AI compute and has a wide moat due to its CUDA software platform. Broadcom is seen as a leader in custom chips and networking, while Arm Holdings has a big opportunity in CPUs and agentic AI.