Nvidia and Micron Named Best Semiconductor Stocks for 2026 by Baird
Semiconductor stocks have surged after Baird analyst Tristan Gerra named Nvidia and Micron as top picks for 2026. The announcement highlighted their strong positions in the AI-driven chip market. Both companies saw immediate gains as investors responded to the forecasted growth potential.
Gerra, Baird’s Chief Technology Officer, based his selection on Nvidia’s dominance in AI and Micron’s critical role in memory chips. He projects Nvidia will maintain its market lead through 2026 and 2027, citing its execution strength and expanding production capacity. The company’s CEO, Jensen Huang, recently revealed $500 billion in advance orders for its Blackwell and Rubin chip series, far outstripping current supply.
Micron’s appeal stems from rising demand for its LPDDR5 memory technology, essential for high-speed, energy-efficient AI applications and smartphones. The company plans to invest $20 billion in capital spending next year, though this marks a smaller increase compared to previous years. Despite this, Gerra estimates Micron could achieve peak earnings of $42 per share by 2027. Currently, its production meets only 50% to 66% of market demand, creating a historic supply shortage. Baird’s updated price targets reflect strong confidence in both firms. Nvidia’s target rose to $275, suggesting a 51.9% upside, while Micron’s jumped to $443, with a potential 66.6% increase.
The analyst’s picks have already boosted share prices for Nvidia and Micron. With Nvidia’s backlog of chip orders and Micron’s constrained supply, both companies are positioned to benefit from sustained AI-driven demand. Investors are now watching how quickly production can scale to meet market needs.
