Baird Names Nvidia and Micron Top Semiconductor Stocks for 2026

TLDR

• Robert W. Baird analyst Tristan Gerra named Nvidia and Micron as top semiconductor picks for 2026
• Gerra raised Nvidia’s price target to $275 and Micron’s to $443, maintaining Buy ratings on both stocks
• Demand for Nvidia’s Blackwell AI chips exceeds supply, with CEO Jensen Huang reporting $500 billion in orders for Blackwell and Rubin chips
• Micron currently meets only 50% to 66% of memory chip demand, the tightest supply situation ever recorded
• Gerra predicts Micron will reach peak earnings of $42 per share in 2027 driven by new GPU and XPU launches

Robert W. Baird analyst Tristan Gerra selected Nvidia and Micron as his top semiconductor picks for 2026. He expects strong artificial intelligence demand to continue throughout the year.

Gerra raised price targets for both companies following their recent quarterly results. He maintained Buy ratings on both stocks.

NVIDIA Corporation, NVDA

The analyst set a $275 price target on Nvidia shares, representing 51.9% upside potential. For Micron, he established a $443 price target, implying 66.6% upside potential from current levels.

Gerra ranks as a five-star analyst on TipRanks at position 410 out of 10,202 analysts tracked. His success rate stands at 56% with an average return per rating of 14.90%.

Demand for Nvidia’s Blackwell AI chips currently exceeds available supply. This situation mirrors the chip shortages observed in early 2024.

Gerra expects Nvidia to deliver strong results and maintain its competitive lead through 2026 and 2027. The analyst anticipates market focus will shift to Nvidia’s execution and production capacity at Taiwan Semiconductor Manufacturing.

Nvidia CEO Jensen Huang disclosed that the company holds approximately $500 billion in orders for its upcoming Blackwell and Rubin chips. This order book supports Gerra’s positive outlook for the company.

The analyst pointed to Nvidia’s architecture leadership as a key advantage. This technical edge has been a defining characteristic of the company since 1999.

Gerra favors Micron due to expected growth in AI-related memory chip demand. The company leads in high-profit areas like LPDDR5 memory.

LPDDR5 technology powers fast, energy-efficient chips used in phones, AI applications, and high-end devices. Micron’s position in this market segment provides a competitive advantage.

Micron currently fulfills only 50% to 66% of demand for its products. This represents the tightest supply situation the company has ever experienced.

Gerra maintains a positive view on 2027 performance. His outlook is driven by new GPU and XPU launches that require increased high-bandwidth memory.

The analyst projects Micron will achieve peak earnings of $42 per share in 2027. He expects DDR5 and NAND prices to decline mid-year but forecasts strong margins for the next six quarters.

Micron plans to spend $20 billion on capital expenditures next year. This represents a smaller increase compared to this year and equals 26% of projected sales, which Gerra considers normal levels.

Gerra cited Micron’s recent beat-and-raise quarter as evidence supporting his optimistic view. The company’s financial performance demonstrates the strength of current market conditions.

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