AI chip stocks rose Monday as several Wall Street analysts reiterated their bullish views on the artificial intelligence market. Nvidia stock neared a new buy point.
In a client note Monday, Melius Research analyst Ben Reitzes said the total addressable market for AI data centers might be much bigger than investors realize.
Nvidia's long-term growth is underappreciated, Reitzes said, adding that consensus estimates for 2026 and 2027 "look conservative." Reitzes rates Nvidia stock as buy with a price target of 205.
On the stock market today, Nvidia stock climbed 1.9% to close at 144.69. It is approaching a buy point of 153.13 in a 23-week consolidation pattern, according to IBD MarketSurge charts. That buy point is also the stock's all-time high, reached on Jan. 7.
Meanwhile, Oppenheimer analyst Rick Schafer on Sunday kept his outperform rating on Nvidia stock with a price target of 175.
Nvidia's announcements last week to help European nations with their sovereign AI projects add "even more inertia to the AI flywheel," Schafer said in a report.
"At the forefront of the AI industry, Nvidia remains best positioned in AI, benefiting from full-stack hardware/software solutions," he said.
Elsewhere on Wall Street, Piper Sandler analyst Harsh Kumar on Monday maintained his overweight, or buy, rating on Advanced Micro Devices and upped his price target to 140 from 125. He sees AMD gaining ground in AI data centers with its rack-scale solutions announced last week.
On Monday, AMD stock rose 8.8% to close at 126.39. With the move higher, AMD stock cleared its 200-day moving average line, a key level.
Other AI Chip Stocks On The Move
In addition to Nvidia and AMD, other AI chip stocks rising on Monday included Broadcom and Marvell Technology.
JPMorgan analyst Harlan Sur expects Broadcom and Marvell to benefit from the growth of application-specific integrated circuits, or ASICs, for AI tasks.
Sur increased his estimate for the size of the high-end ASIC market this year to $30 billion from $25 billion previously. He sees it growing at a compound annual rate of 30% over the next few years.
Broadcom is the leader of the high-end ASIC market with about 55% to 60% share. Marvell is No. 2 in the market with about 15% share, Sur said.
"Custom ASICs are a strong alternative vs. using off-the-shelf merchant solutions (e.g., Nvidia GB200 and AMD MI350) as cloud/hyperscale titans (Google, Meta/Facebook, Microsoft, Amazon, etc.) continue to look for more differentiation, better performance, lower power consumption and lower overall silicon costs," Sur said.
Sur rates Broadcom stock as overweight with a price target of 325 and Marvell as overweight with a price target of 130.
On Monday, Broadcom stock increased 1.4% to 252.10. Marvell stock rose 4.8% to 70.42.
Nvidia Stock Is On 3 Lists
ASICs account for about 40% of the AI processor market, with merchant graphics processing units, or GPUs, taking 60% share, Sur said.
Nvidia stock is on three IBD lists: Leaderboard, Sector Leaders and Tech Leaders.
Broadcom stock is on two IBD lists: Leaderboard and Tech Leaders.
Follow Patrick Seitz on X at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
