By Nauman Khan
Publication Date: 2025-12-22 14:25:00
This article first appeared on GuruFocus.
Shares of Nvidia (NASDAQ:NVDA) and Micron Technology (NASDAQ:MU) moved higher on early Monday after Robert W. Baird named both companies among its top semiconductor picks for 2026, citing sustained artificial intelligence demand.
Nvidia climbed nearly 2% and Micron rose about 3% following the announcement.
Baird analyst Tristan Gerra reiterated Buy ratings on both stocks following recent quarterly results that pointed to steady momentum across AI-linked markets.
Gerra lifted his price target on Nvidia to $275 and raised Micron’s target to $443, pointing to improved earnings visibility and stronger end-market demand trends.
For Nvidia, Gerra said demand for next-generation AI processors remains ahead of supply, with attention likely to center on execution and manufacturing capacity as the company moves deeper into 2026.
He also noted that chip production remains closely tied to Taiwan Semiconductor Manufacturing (TSM), which plays a key role in meeting Nvidia’s output needs.
Micron, meanwhile, was highlighted for tightening memory supply and growing exposure to high-bandwidth memory used in AI workloads.
Gerra said pricing discipline and measured capital spending could support margins over the coming quarters.
