Nvidia, Micron, Broadcom Face 40% Upside Amid AI Slowdown Debates
Analysts maintain bullish stances on three major semiconductor firms despite industry calls to pause AI development, citing sustained demand for hardware and memory solutions.
Nvidia, Micron Technology, and Broadcom retain Strong Buy consensus ratings from Wall Street analysts, with average price targets implying upside potential ranging from 45% to 57%. This optimism persists despite recent statements from tech leaders suggesting a slowdown in frontier AI model development. The divergence highlights a split between cautious software pacing and robust hardware demand, where chipmakers continue to see firm orders for data center infrastructure.
According to data aggregated by TipRanks, each of these three companies holds a Strong Buy consensus based on approximately 30 analyst ratings issued in the past three months. The average price targets stand at $324.30 for Nvidia, $1,564.44 for Micron, and $519.21 for Broadcom. These figures suggest significant room for growth relative to current market prices, driven by the critical role these firms play in the artificial intelligence supply chain.
Nvidia Defends Innovation Pace
Nvidia CEO Jensen Huang argues that AI innovation and rigorous safety testing can advance simultaneously, countering calls for slower development. Bernstein analyst Stacy Rasgon reiterated a Buy rating on September 14, setting a price target of $400. The broader analyst consensus places the average target at $324.30, indicating a 48% upside. This stance relies on the continued necessity of Nvidia’s GPUs for training and inference workloads, regardless of software-level pacing changes.
Micron Benefits From Memory Scarcity
Micron is positioned to benefit from tight supply conditions in high-bandwidth memory, a key component for AI accelerators. TD Cowen analyst Krish Sankar maintained a Buy rating on September 15 with a price target of $1,600. The consensus average target is $1,564.44, representing a 57.2% upside. Investors are watching for earnings results expected on September 30, where pricing power and hyperscaler demand are expected to drive revenue growth.
Broadcom Cites Custom Chip Demand
Broadcom CEO Hock Tan has dismissed concerns about an AI slowdown, pointing to sustained demand for custom accelerators and networking chips from major cloud customers. Bernstein’s Stacy Rasgon maintained a Buy rating this week with a price target of $575. The average analyst target is $519.21, suggesting a 45% upside. Broadcom’s strategy focuses on specialized silicon for large-scale cloud providers, differentiating it from general-purpose chip competitors.
