Analysts choose top AI stocks to buy amid AI changes
Yogi Bella, the great sage of modern baseball, said “it’s difficult to predict, especially the future.” His observations apply to all life courses, especially in the high-tech world.
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In November 2022, Openai released ChatGpt, showing how generative it is ai You can crush the concepts of what machine learning can do. Last month, Chinese startup Deepseek released its latest AI model, shaking the world of shakers.
The R1 reportedly outperforms the best AI models in the American scene, but it’s how it really makes this development important. The R1 model is open source, and DeepSeek claims that AI training costs (the total cost of potential background technology and hardware) came in just $6 million. This is a small portion of the costs associated with some of the US-based AI systems that grab headlines like ChatGpt, Gemini, Grok and more.
But is this a sign of earthquake changes in AI development or a one-off anomaly? Baird analyst Tristan Guerra has leaned towards the latter, suggesting that this could be a more exception than the beginning of the trend.
“Deepseek is a novelty claim, but time tells us whether it causes confusion in current AI models and AI architectures. I strongly doubt that. The costs charged are unrealistic. It appears to be built on existing AI research and GPU architecture. Furthermore, low-end/low-cost implementations will increase further demand for AI systems, and price resilience will be comparable to GPU volumes. We believe it is promoting a surge in.
With that in mind, Gerra doubles Nvidia (NASDAQ: NVDA) and Micron (NASDAQ: MU) as Top AI plays. Both companies are industry leaders, and both enjoy the consensus ratings of “strong buy” analysts, and both support the benefits of AI’s relentless growth. Let’s take a closer look.
nvidia
The first Nvidia on our list is not the largest in the world semiconductor Company – One of the largest public companies on Wall Street. The chipmaker’s stock lost a historic $590 billion in the aftermath of Deepshek’s headline. This is the largest daily decline ever recorded.
However, Nvidia’s meteor rise is well documented and takes into account recent Deepseek-related losses, which means that the stock has risen 441% over the past three years. Nvidia’s GPU chips have proven to be the most popular among data center operators and AI application developers, so profits work with very strong sales.
The release of R1 was a direct challenge to its domination. According to DeepSeek, the latest AI models either do not use the latest version of the top-end processor chip or do not rely on fast computing. As a result, only a small portion of the power demands seen in established AI can be achieved. If the R1 is living up to this hype, it will be the first of a new model of AI. Nvidia is forced to adapt as it has managed to dominate the market for expensive, high-end AI-available processor chips. Quick. It clearly surprised investors.
Nvidia appears to be bold in part of this development. The company issued a statement celebrating Deepseek for its impressive advancements in AI technology, particularly in demonstrating the test time scaling capabilities of its models. The company also noted that Deepseek’s R1 is still based on previous AI models and uses more traditional AI training methods.
Assuming Nvidia is correct, the market for high-end AI-enabled chips will not go away. And Nvidia holds a major position in its market despite the delays in the new Blackwell series. And last summer, Nvidia announced the successor to Rubin, the successor to the Blackwell series, a new GPU architecture that will be released in 2026.
In its final series of financial results covering 3Q25 accounting, Nvidia reported revenue of $35.08 billion, up 93% year-on-year and increased its forecast by $1.95 billion. On the bottom row, Nvidia’s non-GAAP EPS at 81 cents was 6 cents per share than expected. The company finished the third quarter with $38.5 billion in cash and other liquid assets, providing a deep pocket to survive the storm.
For Tristan Gerra, what’s important here is that Nvidia remains a solid player with a strong product line. The five-star analyst said in his article on Nvidia: “Based on the system level issues, we are expecting a low mix of GB200 vs B200/B300, so we’re slightly lowering Nvidia’s 2h total margin estimate. To consider implementation challenges. , reducing this year’s Grace Unit estimate from 1m to 1.5m units. This mix shift could rise to an estimate of annual AI revenue. There is no change in EPS estimate: expected B200 Beyond the channel push, we expect strong demand for B300, but the Rubin platform needs to inspire further performance/revenue growth. NVDA is still the best idea.”
As a “best idea,” Nvidia’s stock has received an outperform (i.e., a purchase) rating from Gerra. That stock price means that the $195 price target for the stock has increased by 49% from its current level next year. (To see Gerra’s achievements, click here))
Overall, NVIDIA shares hold a strong purchase rating from Street Analyst Consensus based on 39 reviews including 37 and 39 reviews including 39 to hold. The stock is currently trading at $131.14, with an average target price of $178.86, suggesting a 50% chance of upside over the course of a year. (look NVDA Stock Prediction))
Micron Technology
Next is Micron, a semiconductor chip company based in Boise, Idaho. The company is particularly well known for its memory chips, a key component of the AI boom. Micron’s high-bandwidth memory (HBM) chip is particularly suitable for AI use.
Last February, Micron announced it was partnering with Nvidia, providing HBM3E chips that large companies can use in AI-enabled semiconductors. Recently, Micron’s HBM4 was chosen for use on Nvidia’s upcoming Rubin platform. Micron boasts that HBM chips can match rival performance and consume 30% less power, giving them a competitive advantage in tough areas.
Like Nvidia above, Micron was a huge hit with the release of Deepseek’s R1. Like most of their peers, Micron has benefited greatly from the rise in AI over the past few years. But by stepping up and delivering powerful memory chips that AI data centers and high-speed computing requires, the company is vulnerable to the release of DeepSeek’s low-cost, energy-hungry AI competitors . The chip consumes less power, but maintains performance. These are the main qualities needed to compete with the FeepSeek model.
Like Nvidia above, Micron comes to this fight with a record of success. Both the company’s revenue and revenue have risen in recent quarters. In the first quarter, the previous reporting period, Micron’s revenue rose by $8.71 billion, up 84% year-on-year, meeting street expectations, but non-GAAP EPS forecasts at $1.79 I surpassed the cent. Micron had $6.7 billion in cash and cash equivalents at the end of the first quarter.
Checking in again with Baird analyst Gerra, he noticed that he was bright on Micron. The company’s Nvidia’s exposure to Rubin is cited as an important point. Gerra said of Micron: The large die size and Rubin I/O count means that the HBM capacity required to support flat volumes is increased by more than 30%. This dynamic supports the ongoingly demanding HBM supply in 2026, and in our view it benefits pricing/margin. While Micron has been well established as a major HBM supplier starting at 2H25, Samsung continues to struggle. Low grace volume is positive for DDR5. Micron remains the best idea. ”
Going forward, analysts will give MU shares an outperform (i.e., purchase) rating, with price target of $130, pointing to a 42% increase over the next 12 months.
Micron’s strong buy consensus rating is based on 23 recent reviews categorized into 21 purchases and two holds. The stock price is $91.68, with an average price target of $136.1 being a bit more bullish than Baird View, with a yearly rise of 48%. (look MU Stock Prediction))
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Disclaimer: The opinions expressed in this article are those of featured analysts. Content is intended for informational purposes only. It is very important to do your own analysis before making an investment.
