BMO starts chip stocks coverage: Here are its preferred picks
BMO Capital Markets initiated coverage of semiconductor and quantum computing sectors, favoring AI-exposed and analog chipmakers. Nvidia (top pick) received an Outperform rating and $340 target, with expected revenue growth of 84% and 50% in FY27 and 2028. Other picks include Broadcom, Micron, AMD, Marvell, Semtech, Analog Devices, Microchip, and Impinj. BMO predicts a memory market supercycle and AI-driven capex growth.
How this was made
The 30-second read
Why it matters
The initiation provides fresh analyst sentiment and quantitative targets, likely influencing short‑term trading and sector allocation.
Market read
First‑time coverage and price targets for a suite of semiconductor stocks create new trading signals across the AI chip space.
What to watch
Potential macro slowdown or chip inventory corrections could temper upside.
Background
BMO Capital Markets launched a new semiconductor and quantum computing coverage team, issuing ratings and price targets for multiple AI‑exposed chip makers.
Ticker impact
BMO initiated coverage on Nvidia with an Outperform rating and a $340 price target.
Potential price increase toward $340 target.
Outperform rating signals strong demand; target reflects 84% FY27 growth.
BMO rated Broadcom Outperform with a $455 price target.
Shares may rally toward $455.
Broadcom positioned as leading AI ASIC supplier.
BMO initiated Micron with an Outperform rating and a $1,300 target.
Potential move toward $1,300.
Memory supercycle and tight supply cited.
BMO gave AMD an Outperform rating with a $550 price target.
Shares could climb toward $550.
AI exposure highlighted.
BMO rated Marvell Outperform with a $250 price target.
Potential rise toward $250.
AI‑exposed semiconductor.
BMO rated Semtech Outperform with a $155 price target.
Shares may move toward $155.
AI‑related product exposure.
BMO initiated Analog Devices Outperform with a $430 price target.
Potential advance toward $430.
Top analog pick, positioned for semi cycle upturn.
BMO initiated Microchip Outperform with a $95 price target.
Shares may rise toward $95.
Analog sector exposure.
Market effects
Broad coverage may lift the semiconductor sector as investors reprice AI exposure.
U.S. tech‑heavy indices could see modest gains.
Reinforces global AI chip demand narrative.
Counterpoint
Some investors may view the high targets as overly optimistic given supply constraints.
Key entities
- AnalystHarsh Kumar
Lead analyst at BMO Capital Markets covering AI chips.
