NVDA vs. MU vs. AMD – Top UBS Analyst Picks the Best AI Chip Stock

UBS top analyst Timothy Arcuri updated his views on leading U.S. chip makers Nvidia NVDA -1.58% ▼ , Micron MU +5.13% ▲ , and Advanced Micro Devices AMD -2.20% ▼ . While he remains bullish about the long-term potential of all three companies, he adjusted price targets based on near-term outlooks. Arcuri reiterated his Buy ratings across the board with the following changes:

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• NVDA – Maintained price target of $245, implying 34.3% upside

• MU – Raised price target from $450 to $475, implying 15.1% upside

• AMD – Lowered price target from $330 to $310, suggesting 56% upside

Arcuri is a five-star analyst on TipRanks, ranking #5 out of 12,141 analysts tracked. He boasts a 76% success rate and an impressive average return per rating of 41.4%.

Is Nvidia Stock a Buy?

Arcuri met NVDA CFO Colette Kress on a bus tour and returned bullish on Nvidia’s networking growth and long-term margins. Kress noted that hyperscalers are planning 2027 compute buildouts amid strong demand, signaling solid momentum over the short term.

He also stated that hyperscalers have robust balance sheets and cash flows, enabling large capex spending ahead of revenue and profits, similar to the cloud expansion of the past decade. Hyperscalers are also using financing leases, special purpose vehicles, and other options to fund the capex.

Nvidia is already the world’s top networking company and plans to exceed all other networking chip makers combined by this year-end. Gross margins are at 71% now, nearing the 75% max target suggested by the management. Arcuri maintained his calendar 2027 and 2028 earnings per share (EPS) estimates at approximately $12.50 and $15, respectively.

On TipRanks, NVDA stock has a Strong Buy consensus rating. The average Nvidia price target of $271.11 implies 48.6% upside potential from current levels.

What Is the Future of Micron Stock?

Arcuri noted that Micron benefits from AI-driven memory shortages, which is pushing prices higher. His checks show strengthening DRAM (dynamic random-access memory) and NAND (not AND) pricing, mainly as shortages may persist through 2027-2028 due to fab limits, equipment delays, and engineer shortages. Consequently, all new capacity is going to HBM, tightening the already stringent DDR5/NAND supply.

He forecasts Micron’s EPS will hit about $60 in 2026, which is way above Wall Street’s $40 forecast, and nearly $85 in 2027 vs. Street’s $48. He says Micron is signing long-term deals to lock in steady sales and profits, even if it means smaller price jumps soon.

He also highlighted that memory chips (especially DRAM) are a big edge in AI gear, helping cloud giants keep cutting AI usage costs sharply like Google’s GOOGL -0.42% ▼ Gemini, down over 78% from last year. Micron shot down rumors of falling behind on HBM4 tech, stating that it is already shipping them a full quarter ahead and will not stick with older HBM3e due to Nvidia delays. With billions in new factory spending, Micron aims to reduce business volatility and risks tied to deploying that spending.

MU stock also has a Strong Buy consensus rating. The average Micron price target of $413 implies that shares are almost fully valued at current levels.

Is AMD a Good Stock to Buy Now?

Arcuri remains confident about AMD’s long-term potential driven by AI data center growth and rising demand, with revenue ramping in 2027. Notably, AMD hinted at a possible third large gigawatt-scale customer, beyond OpenAI and Meta Platforms META -3.83% ▼ . Arcuri believes that customer could be Microsoft MSFT -1.57% ▼ .

Additionally, AMD dismissed worries that warrants and 10% equity deals, similar to ones with Meta and OpenAI, are required for gigawatt-scale contracts. AMD calls them special for big AI model makers who control much of the ecosystem. AMD sees the equity as a long-term win that speeds up its market share growth in accelerators.

AMD remains upbeat about its CPUs (central processing units) business, expecting growth beyond its model’s 18% annual growth from higher sales volume and prices. Notably, Arcuri views AMD as a solid second-half 2026 bet, with OpenAI MI450 shipments then, followed by Meta’s.

AMD stock has a Moderate Buy consensus rating as analysts remain cautiously optimistic. The average AMD price target of $286.04 suggests 44% upside potential from current levels.

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