Nvidia and Micron Named Best Semiconductor Stocks for 2026 by Baird
Nvidia and Micron have been named top semiconductor investments for 2026 by Baird analyst Tristan Gerra. The recommendation follows surging demand for AI-driven chips, pushing both companies’ stock prices higher. Gerra’s report also raised price targets, predicting significant upside for each firm.
Gerra highlighted Nvidia’s dominance in the AI chip market, where advance orders for its Blackwell and Rubin series now exceed $500 billion. CEO Jensen Huang confirmed the figure, noting that supply struggles to keep pace with demand. As a result, Baird set a new price target of $275 for Nvidia, suggesting a 51.9% potential increase.
Micron also gained attention due to its critical role in memory technology. The company’s LPDDR5 chips, known for high-speed and energy-efficient performance, are in high demand for smartphones and AI applications. However, production constraints mean current output meets only 50% to 66% of market needs. To address this, Micron plans $20 billion in capital spending next year—about 26% of its projected revenue.
Gerra’s analysis forecasts Micron’s earnings could peak at $42 per share by 2027. The stock’s target was raised to $443, implying a 66.6% upside. Both companies saw immediate share price gains after Baird’s announcement.
The updated targets reflect strong confidence in AI-driven growth for Nvidia and Micron. Nvidia’s $500 billion order backlog and Micron’s memory shortages underscore the sector’s supply challenges. Investors are now watching how both firms scale production to meet rising demand.
