Top-rated Wall Street analysts highlight AMD, Micron, and Western Digital as high-upside opportunities amid AI-driven chip demand
As the semiconductor industry continues to benefit from surging AI demand, cloud computing, and data infrastructure investments, top Wall Street analysts have singled out three chip stocks with significant upside potential. Backed by recent analyst upgrades and raised price targets, these picks offer compelling entry points for long-term investors.
Here are three Buy-rated semiconductor stocks worth considering now:
1. Advanced Micro Devices (AMD)
Ticker: NASDAQ: AMD
Current Sentiment: Buy
Analyst: Vijay Rakesh, Mizuho Securities
New Price Target: $275
Implied Upside: 23%+
Why Buy AMD?
- AMD continues to gain ground in data centers, gaming, and AI accelerators, offering strong competition to industry heavyweight Nvidia.
- The upcoming MI450 GPU and its massive $100B deal with OpenAI position AMD as a serious player in AI infrastructure.
- Rakesh’s upgrade reflects optimism around AMD’s product roadmap, server chip momentum, and ability to scale in AI markets.
“AMD has a solid multi-year growth trajectory driven by AI, data centers, and competitive execution,” says Rakesh.
2. Micron Technology (MU)
Ticker: NASDAQ: MU
Current Sentiment: Buy
Analyst: Karl Ackerman, Exane BNP Paribas
New Price Target: $270
Implied Upside: 40%+
Why Buy Micron?
- Micron dominates the memory market with DRAM, NAND, and now HBM (High-Bandwidth Memory) for AI applications.
- The company is seeing surging demand from AI server vendors and hyperscalers, supported by strong earnings momentum.
- Ackerman’s bullish target reflects Micron’s positioning in the AI supercycle and the expectation of sustained pricing strength in memory products.
“Micron is entering a multi-quarter upcycle fueled by AI and DDR5 demand,” notes Ackerman.
3. Western Digital (WDC)
Ticker: NASDAQ: WDC
Current Sentiment: Buy
Analyst: Amit Daryanani, Evercore ISI
New Price Target: $190
Implied Upside: 65%+
Why Buy Western Digital?
- WDC is a key player in data storage, serving consumer electronics, cloud platforms, and enterprise solutions.
- The company is benefiting from strong flash pricing trends, along with an expected spinoff of its flash memory unit, which could unlock value.
- Daryanani’s aggressive target reflects his belief that WDC is significantly undervalued relative to peers, especially as storage demand grows in tandem with AI workloads.
“WDC is poised for margin expansion and strategic unlocking of shareholder value,” says Daryanani.
Analyst Consensus at a Glance
| Stock | Current Price Target | Upside Potential | Analyst Rating |
|---|---|---|---|
| AMD | $275 | 23%+ | Buy (Vijay Rakesh) |
| Micron (MU) | $270 | 40%+ | Buy (Karl Ackerman) |
| WDC | $190 | 65%+ | Buy (Amit Daryanani) |
Three top Wall Street analysts have spotlighted AMD, Micron, and Western Digital as top semiconductor picks, each offering 23% to 65% upside. Backed by AI momentum, product innovation, and improving fundamentals, these stocks present strong buying opportunities right now.
