The UBS highlights the enormous potential of AI chips and recommends the stocks of Nvidia, Broadcom, and Micron as the big winners in the upcoming growth phase of the AI market. These three companies are at the center of the rapidly growing market for Artificial Intelligence, making them particularly attractive for investors.
Nvidia in Focus
Nvidia benefits from a persistently high demand for its Blackwell generation AI accelerators, which set new performance standards for training large language models. UBS confirms its buy recommendation with a price target of $175 and forecasts significant growth through extensive AI infrastructure projects in the next two to three years. Analysts estimate that the data center business could reach annual revenues of around $400 billion by 2026. Additionally, Nvidia’s supply situation is significantly improving thanks to scaling up with TSMC.
Broadcom and Micron: Also Potential Winners
Broadcom is also seen as a key beneficiary of the AI boom, as the company supplies key components for data centers and is thus likely to benefit greatly from the expansion of AI infrastructure.
Micron Technology focuses on memory chips for AI applications and is massively investing in the expansion of its chip production in the USA with an amount of $150 billion. The goal is to cover up to 40% of local DRAM production. The strong demand for memory chips for Artificial Intelligence has already led to rising stock prices.
In summary, UBS recommends these three companies due to their leading positions in the field of AI hardware and their strong growth prospects as attractive investments in the current rally of AI chips.