Top 3 Chip Stocks Recommended by an Analyst for Investment in 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 15 2025
0mins
Should l Buy AVGO?
Source: Barron's
Investment Outlook: Jefferies suggests that stocks in the semiconductor industry remain attractive for investment despite significant gains this year.
Market Performance: The semiconductor sector has experienced a notable run, yet analysts believe there are still opportunities for buyers.
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Analyst Views on AVGO
Wall Street analysts forecast AVGO stock price to rise
30 Analyst Rating
29 Buy
1 Hold
0 Sell
Strong Buy
Current: 398.470
Low
370.00
Averages
457.75
High
525.00
Current: 398.470
Low
370.00
Averages
457.75
High
525.00
About AVGO
Broadcom Inc. is a global technology firm that designs, develops, and supplies a range of semiconductors, enterprise software and security solutions. The Company operates through two segments: semiconductor solutions and infrastructure software. Its semiconductor solutions segment includes all of its product lines and intellectual property (IP) licensing. It provides a variety of radio frequency semiconductor devices, wireless connectivity solutions, custom touch controllers, and inductive charging solutions for mobile applications. Its infrastructure software segment includes its private and hybrid cloud, application development and delivery, software-defined edge, application networking and security, mainframe, distributed and cybersecurity solutions, and its FC SAN business. It provides a portfolio of software solutions that enable customers to plan, develop, automate, manage and secure applications across mainframe, distributed, mobile and cloud platforms.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Hypergrowth Stocks in the AI Sector
- Nvidia's Market Dominance: Nvidia (NVDA) achieved a remarkable 73% revenue growth in Q4 of fiscal 2026, with a projected 77% increase for Q1 of fiscal 2027, highlighting its strong performance amid surging demand for AI processing power, and with a forward P/E ratio of just 22.4, it stands out as an ideal investment choice.
- Broadcom's Custom AI Chips: Although Broadcom (AVGO) reported an overall growth of 29% in its latest fiscal quarter, its custom AI chips are expected to generate $100 billion in revenue by next year, with analysts forecasting an acceleration to 64% growth in fiscal 2026, showcasing its potential in the AI market.
- Nebius's Rapid Growth: Nebius Group (NBIS), closely partnered with Nvidia, anticipates reaching an annual revenue of $7 billion to $9 billion by the end of 2026, demonstrating its strong growth potential in AI cloud computing resources, which could significantly benefit shareholders if realized.
- CoreWeave's Significant Growth: CoreWeave (CRWV) is projected to see a 142% revenue increase this year and 86% next year, with sales expected to reach $23 billion by 2027, up from $5.1 billion over the past 12 months, further solidifying its status as a hypergrowth company.
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- Earnings Per Share Growth: The company reported a 19% increase in earnings per share to €7.15, beating consensus forecasts by €0.54, reflecting effective cost management and profitability, which further boosts investor confidence.
- Optimistic Full-Year Outlook: ASML expects full-year revenue between €36 billion and €40 billion, an upward revision from previous forecasts, showcasing confidence in future market demand, likely driving stock price increases and impacting the broader Nasdaq market.
- Long-Term Growth Potential: The company anticipates revenue reaching €44 billion to €60 billion by 2030, with a CAGR of 6% to 13%, indicating that ASML will continue to benefit from the ongoing expansion of the AI market, reinforcing its growth trajectory.
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- Severe Outflows: The BAMD ETF experienced an outflow of 1,900,000 units this week, resulting in a 38.8% decrease in outstanding units, indicating a significant decline in investor confidence that could impact its future market performance.
- Market Reaction: The substantial outflow from the BAMD ETF has heightened concerns regarding its liquidity and stability, potentially prompting other investors to reassess their portfolios, which may affect overall market sentiment.
- Investor Confidence Shaken: The increase in outflow may reflect investor concerns about the fundamentals or market outlook for the BAMD ETF, thereby impacting its long-term investment appeal and possibly leading to further capital flight.
- Industry Impact: The outflow from the BAMD ETF could trigger a ripple effect on capital flows within related sectors, especially as investors seek safer or more attractive investment options, potentially leading to similar outflow pressures on other ETFs.
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- Earnings Beat: ASML's Q1 revenue rose 13% year-over-year to €8.77 billion ($10.38 billion), exceeding analysts' expectations by €110 million, showcasing the company's robust performance in the semiconductor equipment market and reinforcing its market leadership.
- Profitability Growth: Earnings per share increased by 19% to €7.15 ($8.46), surpassing the consensus forecast by €0.54, indicating effective management in cost control and product demand, which enhances investor confidence.
- Guidance Upgrade: ASML raised its full-year revenue guidance to €36 billion to €40 billion ($43 billion to $47 billion), up from the previous forecast of €34 billion to €39 billion, expecting a growth of 10% to 22%, reflecting optimistic expectations for future market demand.
- Significant Market Impact: As the world's only producer of high-end extreme ultraviolet (EUV) lithography systems, ASML's positive guidance could lift the entire Nasdaq index, further solidifying its critical position in the semiconductor and artificial intelligence markets.
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- AMD Hits All-Time High: AMD's stock has risen 13% this week, climbing over 40% during a 12-day streak, marking an all-time high and reflecting strong market confidence in its product demand, indicating a significant recovery in the semiconductor industry.
- Microsoft's Strong Rebound: Microsoft is up more than 14% this week, poised for its best week since April 2015, following its worst quarter since 2008, demonstrating optimistic market expectations for its future growth.
- Tech Sector Recovery: The iShares Expanded Tech-Software ETF is up about 15% week-to-date, on track for its best week since October 2001, reflecting a resurgence of confidence in tech stocks, particularly driven by ongoing investments and innovations in the AI space.
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Tech Stocks Set for Historic Week with Major Gains
- Tech Stock Surge: Oracle's 32% increase this week positions it for its best performance since October 1999, driven by an expanded AI data center deal with Bloom Energy, securing 1.2 gigawatts of capacity.
- AMD Hits All-Time High: AMD's 13% rise this week, with over 40% gains during a 12-day streak, marks its longest winning run in over 20 years, reflecting strong market confidence in its growth prospects.
- Microsoft's Recovery: Microsoft is up more than 14% this week, on track for its best week since April 2015, following its worst quarter since 2008, indicating market recognition of its recovery potential.
- Overall Market Performance: The iShares Expanded Tech-Software ETF has risen about 15% week-to-date, aiming for its best week since 2001, showcasing optimism in the tech sector despite a 20% decline this year.
See More
Hypergrowth Stocks in the AI Sector
- Nvidia's Market Dominance: Nvidia (NVDA) achieved a remarkable 73% revenue growth in Q4 of fiscal 2026, with a projected 77% increase for Q1 of fiscal 2027, highlighting its strong performance amid surging demand for AI processing power, and with a forward P/E ratio of just 22.4, it stands out as an ideal investment choice.
- Broadcom's Custom AI Chips: Although Broadcom (AVGO) reported an overall growth of 29% in its latest fiscal quarter, its custom AI chips are expected to generate $100 billion in revenue by next year, with analysts forecasting an acceleration to 64% growth in fiscal 2026, showcasing its potential in the AI market.
- Nebius's Rapid Growth: Nebius Group (NBIS), closely partnered with Nvidia, anticipates reaching an annual revenue of $7 billion to $9 billion by the end of 2026, demonstrating its strong growth potential in AI cloud computing resources, which could significantly benefit shareholders if realized.
- CoreWeave's Significant Growth: CoreWeave (CRWV) is projected to see a 142% revenue increase this year and 86% next year, with sales expected to reach $23 billion by 2027, up from $5.1 billion over the past 12 months, further solidifying its status as a hypergrowth company.
See More
ASML Reports 13% Revenue Growth in Q1 Earnings
- Revenue Exceeds Expectations: ASML's Q1 revenue reached €8.77 billion, a 13% year-over-year increase, surpassing analysts' estimates by €110 million, indicating strong demand and a solidified market position in the semiconductor equipment sector.
- Earnings Per Share Growth: The company reported a 19% increase in earnings per share to €7.15, beating consensus forecasts by €0.54, reflecting effective cost management and profitability, which further boosts investor confidence.
- Optimistic Full-Year Outlook: ASML expects full-year revenue between €36 billion and €40 billion, an upward revision from previous forecasts, showcasing confidence in future market demand, likely driving stock price increases and impacting the broader Nasdaq market.
- Long-Term Growth Potential: The company anticipates revenue reaching €44 billion to €60 billion by 2030, with a CAGR of 6% to 13%, indicating that ASML will continue to benefit from the ongoing expansion of the AI market, reinforcing its growth trajectory.
See More
BAMD ETF Sees 38.8% Decline in Units Due to Outflows
- Severe Outflows: The BAMD ETF experienced an outflow of 1,900,000 units this week, resulting in a 38.8% decrease in outstanding units, indicating a significant decline in investor confidence that could impact its future market performance.
- Market Reaction: The substantial outflow from the BAMD ETF has heightened concerns regarding its liquidity and stability, potentially prompting other investors to reassess their portfolios, which may affect overall market sentiment.
- Investor Confidence Shaken: The increase in outflow may reflect investor concerns about the fundamentals or market outlook for the BAMD ETF, thereby impacting its long-term investment appeal and possibly leading to further capital flight.
- Industry Impact: The outflow from the BAMD ETF could trigger a ripple effect on capital flows within related sectors, especially as investors seek safer or more attractive investment options, potentially leading to similar outflow pressures on other ETFs.
See More
ASML Q1 Earnings Exceed Expectations, Raises Guidance
- Earnings Beat: ASML's Q1 revenue rose 13% year-over-year to €8.77 billion ($10.38 billion), exceeding analysts' expectations by €110 million, showcasing the company's robust performance in the semiconductor equipment market and reinforcing its market leadership.
- Profitability Growth: Earnings per share increased by 19% to €7.15 ($8.46), surpassing the consensus forecast by €0.54, indicating effective management in cost control and product demand, which enhances investor confidence.
- Guidance Upgrade: ASML raised its full-year revenue guidance to €36 billion to €40 billion ($43 billion to $47 billion), up from the previous forecast of €34 billion to €39 billion, expecting a growth of 10% to 22%, reflecting optimistic expectations for future market demand.
- Significant Market Impact: As the world's only producer of high-end extreme ultraviolet (EUV) lithography systems, ASML's positive guidance could lift the entire Nasdaq index, further solidifying its critical position in the semiconductor and artificial intelligence markets.
See More
Big Tech Stocks Set for Historic Gains
- Oracle Stock Surge: Oracle's shares are up 32% this week, on track for its best week since October 1999, driven by an expanded AI data center power deal with Bloom Energy, contracting 1.2 gigawatts of capacity, showcasing the company's strong positioning in the AI sector.
- AMD Hits All-Time High: AMD's stock has risen 13% this week, climbing over 40% during a 12-day streak, marking an all-time high and reflecting strong market confidence in its product demand, indicating a significant recovery in the semiconductor industry.
- Microsoft's Strong Rebound: Microsoft is up more than 14% this week, poised for its best week since April 2015, following its worst quarter since 2008, demonstrating optimistic market expectations for its future growth.
- Tech Sector Recovery: The iShares Expanded Tech-Software ETF is up about 15% week-to-date, on track for its best week since October 2001, reflecting a resurgence of confidence in tech stocks, particularly driven by ongoing investments and innovations in the AI space.
See More
Tech Stocks Set for Historic Week with Major Gains
- Tech Stock Surge: Oracle's 32% increase this week positions it for its best performance since October 1999, driven by an expanded AI data center deal with Bloom Energy, securing 1.2 gigawatts of capacity.
- AMD Hits All-Time High: AMD's 13% rise this week, with over 40% gains during a 12-day streak, marks its longest winning run in over 20 years, reflecting strong market confidence in its growth prospects.
- Microsoft's Recovery: Microsoft is up more than 14% this week, on track for its best week since April 2015, following its worst quarter since 2008, indicating market recognition of its recovery potential.
- Overall Market Performance: The iShares Expanded Tech-Software ETF has risen about 15% week-to-date, aiming for its best week since 2001, showcasing optimism in the tech sector despite a 20% decline this year.
See More
