Earnings season just wrapped up for semiconductors, and these chip stocks are still in fashion. Earnings show that they are healthier than ever before. In recent reports following earnings, Citi analysts are specifically bullish on Nvidia (NVDA), Monolithic Power (MPWR), Texas Instruments (TXN), and Broadcom (AVGO). All of these companies have posted strong earnings reports and are considered solid due to a continued surge in artificial intelligence (AI) demand.
Data centers now account for 34% of semiconductor demand. Hyperscalers are constantly spending more on data centers, and it is now clear that this is a multi-year cycle, not a fad. These chipmakers are well-positioned to sell to these hyperscalers. Other chipmakers that have greater exposure to PCs and smartphones are more likely to struggle.
Nvidia (NVDA)
Nvidia remains the cornerstone of any serious AI-exposed portfolio. We're looking at year three of the ongoing rally, and nothing suggests that it is ending soon. Hyperscalers are sitting on piles of cash, and even though there is competition on the horizon, the market is expanding so fast that Nvidia will still have more room to grow.
Every major trend in AI spending flows through Nvidia's order book. By the time there's any serious competition, NVDA stock can rally much higher. This isn't a speculative growth story anymore. The company just posted fiscal full-year revenue of $130.5 billion, growing 114% year-over-year, and is guiding for more.
Data center revenue hit $62.3 billion, topping expectations of $60.69 billion, and now accounts for over 91% of total sales. Q1 fiscal 2027 revenue guidance came in at $78 billion, more than $5 billion above the Street's $72.6 billion consensus.
There's plenty more happening in the background, and Nvidia's future looks solid. Following earnings, Citi raised its NVDA price target to $300 from $270.
Monolithic Power Systems (MPWR)
MPWR designs power management chips. If you've been keeping tabs on this AI rally, you should be more than aware that data center power demand is a headache for both enterprises and the government. Federal leaders are pushing companies to secure their own power sources to avoid pressuring the grid, but even that is proving to be tricky.
This company is in a perfect position to capitalize on this. As AI clusters demand more power density per rack, the company's solutions become increasingly critical infrastructure.
CEO Michael Hsing said the lines between AI GPUs and traditional server CPUs are getting "pretty blurry because they're so integral to one another these days. They're using the same kind of a [sic] power supply now."
The company is evolving from a pure chip-seller into a full systems-level supplier, building integrated modules, 800-volt power solutions, and next-generation packaging.
Full-year 2025 revenue hit $2.8 billion, up 26.4% year-over-year. Management initially guided for 30% to 40% enterprise data growth for 2026, but then raised it to a "floor of 50%" on the Q4 call.
Following earnings, Citi raised its price target from $1,250 to $1,350.
Texas Instruments (TXN)
Texas Instruments makes analog and embedded processors for a wide range of customers. Now, the sorts of chips this company sells are more useful for managing power in a factory motor or regulating voltage in a car. This is why TXN stock is up just about 14% in the past five years. Plus, Moore's Law does not apply to analog chips. The market is more slow-moving, so customers who hoarded chips a few years back are still using that inventory instead of ordering more.
Naturally, you're going to ask why Citi recommended TXN stock. It's the same reason why they like MPWR stock. AI data centers are growing more power-hungry and complex, so they're no longer sticking to traditional AI chips. A host of components that go into making data centers now require analog chips, and this demand is surging. Data-center-related sales for analog companies grew 50% to 70% in 2025.
TXN stock comes with a 2.86% dividend yield, and most investors are still unaware of the true AI potential of analog chips.
Citi has a $235 price target on the stock.
Broadcom (AVGO)
This stock is often seen as the foremost competitor to Nvidia, but that title will likely belong to Alphabet (GOOG) (GOOGL) in the next couple of months due to Google's TPUs. Anyhow, I don't expect AVGO stock to slip as long as the chip market keeps rallying.
Broadcom also comes with a software wing, which is VMware. VMware allows developers to run a virtual computer on their own machine, and it is very useful for cybersecurity teams.
AVGO stock is down nearly 6% in the past six months, but I see gains ahead as the fundamentals catch up. The stock was too hot, and the sideways trading action is healthy.
Q1 AI revenue of $8.4 billion grew 106% year-over-year, above even Broadcom's own forecast, driven by robust demand for custom AI accelerators and AI networking. AI now accounts for roughly 44% of Broadcom's total revenue, up from just 15% two years ago.
Citi has a "Buy" rating on AVGO with a price target of $458.
On the date of publication, Omor Ibne Ehsan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
More news from Barchart
- Tesla Turns into A ‘Software-Killer’ With Macrohard: Is the Stock a Buy Now?
- 309% Gain in One Year: Can This Under-$20 Semiconductor Stock Keep Soaring in 2026?
- Analysts Think This Hard-Hit Digital Asset Treasury Stock Can Gain 33% from Here
- After a Stellar Rally in 2025, Will Intel Stock Double in 2026?
