A wide array of semiconductor stocks linked to artificial intelligence remain strong due to the steady stream of infrastructure announcements, prompting Cantor to increase price targets and reiterate its “best ideas.”
Its best ideas related to AI chips include Nvidia (NVDA), Broadcom (NASDAQ:AVGO) and AMD (AMD).
“We expect broad-based beats and raises across AI, with large-scale projects (ala OpenAI) driving general upside to near-term numbers and more meaningful upside to CY26 and beyond estimates as we continue to model a clear path to AOI Accelerator revenues of $350B+ in CY26,” said Cantor analysts, led by C.J. Muse, in an extensive Tuesday investor note.
Cantor increased its price target on Broadcom to $450 from $400.
Among semiconductor capital equipment stocks, Cantor’s “best ideas” include ASML Holding (ASML), Lam Research (NASDAQ:LRCX), Applied Materials (NASDAQ:AMAT) and MKS (NASDAQ:MKSI).
Cantor increased the price targets on Applied Materials to $250 from $225, Lam Research to $170 from $155, and MKSI to $180 from $150.
“We expect investors to look through skinny beat and raises in 2HCY25 with far greater focus on WFE uplift into the 2026-2028 time frame led by TSMC (TSM) ($50B capex?), Samsung Taylor (adding 10-20k/wspm), DRAM uplift (across the board), more aggressive NAND upgrades, and better-than-feared Domestic China,” Muse said.
Cantor’s best ideas for memory and storage companies include Western Digital (WDC), Seagate Technology (STX), Micron Technology (NASDAQ:MU) and Sandisk (NASDAQ:SNDK).
“Demand for DRAM remains robust given significant compute buildouts for generative AI, NAND remains in the early innings of the recovery in both Consumer and Data Center, and the HDD oligopoly continues to act like an oligopoly with disciplined supply growth, helped by AI-driven demand,” Muse added.
Cantor increased its price targets on Micron to $240 from $200 and Sandisk to $180 from $50.