The boom around artificial intelligence continues to drive demand for semiconductors. UBS analyst Timothy Arcuri therefore remains optimistic for NVIDIA, Micron and AMD.
• Market for AI chips remains highly dynamic
• UBS recommends buying NVIDIA, Micron and AMD
• Different growth drivers for the three industry giants
In a current analysis, the major Swiss bank UBS reassessed the three leading US chip companies NVIDIA, Micron and AMD and partially adjusted the price targets. Although analyst Timothy Arcuri remains fundamentally optimistic for all three stocks, he places different emphasis on the growth drivers.
NVIDIA Stock: Strong Network Outlook
According to TipRanks, the expert reiterates the buy recommendation for the AI chip market leader NVIDIA. According to the analysis, Arcuri continues to see significant growth prospects, particularly in the company’s network business. Therefore, the price target for the share remains at $245, which implies an upside potential of around 25.45 percent, based on the closing price on March 9th.
The analyst refers to discussions with the company’s management. According to Colette Kress, the group’s chief financial officer, major cloud providers plan to further expand their computing capacities in the long term, which indicates continued high demand for computing power. The balance sheets and cash flows of the hyperscalers remain robust, which enables them to invest heavily.
According to the analysis, an additional growth driver could be the network business. NVIDIA is already the global leader in this segment and aims to surpass all other network chip manufacturers combined by the end of the year, reports TipRanks, citing the analyst report. In addition, the gross margin is currently around 71 percent and is approaching the maximum target of 75 percent stated by management.
Micron shares: benefiting from memory shortages
UBS is also positive for the memory chip manufacturer Micron Technology. According to Investing.com, the bank raised its price target for the stock to $475 – it was previously $450 – and confirmed its buy rating. Based on the closing price on March 9th, this means an upside potential of 18.04 percent.
The move is based on the continued tight supply situation for memory chips. According to analyst Timothy Arcuri, industry checks suggest that pricing trends for both DRAM and NAND memory continue to improve. UBS expects shortages could last into the second half of 2027 and possibly into 2028.
The analysis cites, among other reasons, a lack of production capacity, long delivery times for systems and a lack of qualified engineers to install and commission new manufacturing technology. At the same time, a large part of the new production capacity is being used for high-bandwidth memory (HBM), which is further reducing the supply of other types of memory.
The Swiss bank is therefore forecasting significantly increasing profits: it expects earnings per share of around $60 in 2026, while the market consensus is currently around $40. For 2027, UBS even sees close to $85 per share, compared to around $48 according to the consensus estimate.
AMD Stock: Long-Term Opportunities in AI Data Centers
The bank also remains fundamentally positive about Advanced Micro Devices (AMD). According to TipRanks, analyst Arcuri sees long-term growth opportunities from increasing demand for AI computing power in data centers. Although UBS has slightly reduced the price target for the share from $330 to $310, the valuation still implies significant upside potential of around 34.6 percent (as of March 9, 2026).
The analyst points to possible additional major customers. In addition to the existing partners OpenAI and Meta, AMD has indicated a possible third customer with very large data center projects. According to the report, Arcuri believes it is possible that this is Microsoft.
The analyst sees AMD as a solid bet, especially from the second half of 2026, when larger deliveries of new chip generations begin.
Three AI chip stocks with different drivers
UBS’s analysis shows that the AI semiconductor market could have several winners from the bank’s perspective. While NVIDIA primarily benefits from its dominant position in AI accelerators and the growing demand for network chips, Micron is in focus due to structural bottlenecks in memory chips and rising prices. AMD is still seen as a potential challenger in the AI data center market, even if major sales impulses could only become apparent in the coming years.
According to analysts, the semiconductor sector remains heavily dependent on the development of AI infrastructure – with different growth drivers for individual companies.
Editorial team finanzen.net
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