There’s no doubt that chip stocks are increasingly a draw for investors. In fact, several are up today despite new potential rules for selling chips into the Chinese and Russian markets. Intel (NASDAQ:INTC) is leading the way right now, up nearly 2%. AMD (NASDAQ:AMD) isn’t far behind at nearly 2%, and Nvidia (NASDAQ:NVDA), Micron (NASDAQ:MU) and Texas Instruments (NASDAQ:TXN) are all turning in fractional but present gains in Monday afternoon’s trading.
Don't Miss our Black Friday Offers:
- Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Interestingly, word from Citi is that Intel and AMD are both very popular topics right now as investors start looking toward the future of chipmaking. Intel’s rising interest in becoming a foundry system is particularly noteworthy, as it brings Intel that much closer to the enviable position of supplying shovels in a gold rush. In fact, reports note that hedge funds are particularly interested in Intel and AMD for just this reason.
The interest was not universal, however. Micron Technology is still suffering from poor perception despite AMD repeatedly cheerleading for it. And new developments for analog chips are poised to hurt Texas Instruments as well. Nvidia is still benefiting from its AI work but may also have some troubles with the Biden Administration further restricting its access to the Chinese market. Meanwhile, another competitor, Samsung, is poised to enter the market with a plan to make three-nanometer chips for the server market.
What are the Best Chip Stocks to Buy?
Turning to Wall Street, NVDA stock is the clear leader in upside potential among those covered here. This Strong Buy has an average price target of $649.82, which gives it a 41.8% upside potential. Meanwhile, INTC stock is the laggard, as this Hold-rated stock offers 0.12% downside risk on its average price target of $36.63 per share.
