Citi Names Nvidia, Broadcom and Two Other Chip Stocks as Top AI Plays

TLDR

• Citigroup named Nvidia, Broadcom, Texas Instruments, and Monolithic Power Systems as its top four semiconductor picks
• Data centers make up 34% of chip demand, driven by AI infrastructure spending
• Nvidia posted $68.1 billion in sales, up 73% year-over-year; Broadcom revenue rose 29% to $19.31 billion
• Citi set price targets of $270 for Nvidia and $475 for Broadcom
• Qualcomm and Intel received only Neutral ratings, with weaker outlooks tied to PC and smartphone markets

Citigroup analysts named four semiconductor companies as their top chip stock picks following the latest round of earnings reports. Nvidia, Broadcom, Texas Instruments, and Monolithic Power Systems all received Buy ratings from the bank.

The bank said data centers now account for about 34% of all semiconductor demand. Ongoing investment in AI infrastructure is the main driver keeping that demand strong.

Citi views Nvidia and Broadcom as core holdings for investors looking to capture AI-related spending. Texas Instruments and Monolithic Power were highlighted for product cycles and internal improvements.

NVIDIA Corporation, NVDA

Nvidia reported $68.1 billion in sales for its latest quarter, a 73% increase from the same period last year. The bulk of that growth came from AI chips used in data centers by major cloud companies.

Citi set a price target of $270 for Nvidia. Analysts on Wall Street project around 49% upside for the stock, with a consensus Strong Buy rating.

Broadcom posted revenue of $19.31 billion in its first fiscal quarter of 2026, up 29% year-over-year. Adjusted earnings per share came in at $2.05, just ahead of the $2.03 consensus estimate.

AI Demand Drives Chip Sector Gains

Citi set a price target of $475 for Broadcom. Analysts see roughly 33% upside from current levels, also with a Strong Buy rating.

Texas Instruments reported quarterly earnings per share of $1.27, slightly below the $1.29 estimate. Revenue reached $4.42 billion, just under the $4.44 billion Wall Street expected, though that still represented a 10% rise year-over-year.

The company issued guidance for the current quarter projecting revenue between $4.32 billion and $4.68 billion. Citi’s price target for Texas Instruments is $235, implying about 13.47% upside.

Monolithic Power Systems beat estimates with earnings per share of $4.79 against expectations of $4.73. Revenue hit $751.2 million, up around 20.8% year-over-year and above forecasts of $740 million.

Monolithic Power guided for first-quarter revenue of $770 million to $790 million. Analysts see roughly 23% upside with a Strong Buy rating.

PC and Smartphone Chipmakers Face Softer Outlook

Not all chipmakers made Citi’s preferred list. The bank assigned Neutral ratings to Qualcomm and Intel, citing softer demand tied to the PC and smartphone markets.

Citi noted that rising memory costs could weigh on shipments in those segments. Price targets for Qualcomm and Intel were set at $140 and $48 respectively.

The industrial chip market, which represents about 10% of semiconductor demand, is performing slightly above normal seasonal trends. The automotive chip segment, making up roughly 11% of demand, is holding steady.

Citi’s price target of $1,350 for Monolithic Power reflects the highest target among the four picks.

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