In this article, we take a look at the 10 Best AI Chip Stocks to Buy for the Long Term.
On June 18, the Wall Street Journal reported on the looming risks faced by the chip industry as it continues to be buoyed by the AI boom, citing insights from Deloitte.
The report highlighted that around 60% to 70% of the chip market’s revenue this year is expected to come from AI demand, particularly from AI chips for data centers. It added:
“The industry seems to have placed all its eggs in the AI basket. That could be fine if the AI boom continues, but the industry should also consider scenarios in which AI demand slows. For leadership, the mandate goes beyond simply capturing AI demand to managing the systemic risks of a high-margin, low-volume paradigm, where shortages in essential components such as memory could drive 50% to 100% price spikes and redraw the global supply chain map,” Deloitte said.
The global consulting firm highlighted several signposts that executives of semiconductor firms should be mindful of, such as the expected rise in DRAM and NAND flash capex by 5% to $61 billion and $21 billion, respectively.
“Given the end-of-year surge in prices, those numbers could spike higher, meeting near-term demand but possibly building overcapacity,” the report said.
Additionally, Deloitte highlighted the challenge faced by current leaders in AI GPUs, CPUs, and memory to maintain their dominant market share in the face of new entrants and the shift from AI training to inference.
“One view is that a growing pie is big enough for everyone; others will be looking for signs that it’s more of a zero-sum game,” Deloitte added.
Taking these insights into consideration, let’s take a look at the 10 Best AI Chip Stocks to Buy for the Long Term.
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Our Methodology
To compile our list of AI chip stocks, we screened U.S.-listed AI chip companies using ETFs, industry research, and proprietary databases. From this pool, we selected the 10 stocks most widely owned by hedge funds, based on Q1 2026 filings from Insider Monkey’s database. These names were then ranked by the number of hedge funds holding positions in them.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
Note: All pricing data is as of market close on June 23, 2026.
10. Qualcomm Incorporated (NASDAQ:QCOM)
Market Capitalization: $215.15 billion
Number of Hedge Fund Holders: 71
Qualcomm Incorporated (NASDAQ:QCOM) is one of the 10 Best AI Chip Stocks to Buy for the Long Term. In the past year, Qualcomm’s stock surged 31.10%, while it registered a 18.01% year-to-date rise.
On June 23, TheFly reported that BofA increased its price target on Qualcomm to $195 from $165 while maintaining an Underperform rating on the shares ahead of the company’s investor day on Wednesday, June 24. The analyst kept its Underperform rating on the stock as it believes the company is re-entering a fast-growing but hyper-competitive AI market.
Earlier on June 17, Qualcomm announced that its subsidiary Qualcomm Technologies Inc. launched the Snapdragon Scalable Turnkey AI-Ready Toolkit (START) to support brands in bringing their own personal AI devices to market, beginning with smart glasses.
Qualcomm explained that the toolkit combines modules with an AI-agnostic full software stack and a network of manufacturing partners that allow organizations to focus on developing new, unique user experiences and a go‑to‑market strategy for faster deployment of their personal AI devices. Global eyewear company Inspecs is the first to collaborate with Qualcomm Technologies under the program, as it eyes bringing smart glasses to market across multiple eyewear brands.
On June 15, The Information reported that Qualcomm is in talks for the acquisition of AI chip design startup Tenstorrent for a transaction valued at $8 billion to $10 billion, citing sources with direct knowledge of the matter.
Qualcomm Incorporated (NASDAQ:QCOM) is a global computing company that develops platforms and solutions that bring together advanced AI, high‑performance, low-power computing, and industry‑leading connectivity.
9. Marvell Technology, Inc. (NASDAQ:MRVL)
Market Capitalization: $244.10 billion
Number of Hedge Fund Holders: 79
Marvell Technology, Inc. (NASDAQ:MRVL) is one of the 10 Best AI Chip Stocks to Buy for the Long Term. The stock skyrocketed 271.01% in the past year and jumped 212.16% year-to-date. On June 23, TheFly reported that BofA increased its price target on Marvell to $365 from $240 while maintaining a Buy rating on the shares as part of the updating of its semiconductor industry models.
The analyst increased its semiconductor industry addressable market forecast to $2.7 trillion from $2.3 trillion, driven by the growth in the memory and data center markets as well as recovery in the automotive and industrial markets.
Earlier on June 18, KeyBanc analyst John Vinh boosted the price target on Marvell to $385 from $260 while maintaining an Overweight rating on the stock, according to a report by TheFly. The analyst made the upward price target adjustment following recent investor meetings with Marvell, which left it more constructive on the data center networking opportunity. In particular, it highlighted Scale Up, where silicon photonics and the acquisition of Celestial AI will help the company differentiate.
KeyBanc noted that given arch shifts in data centers, networking should increasingly be a focus for investors, as it views it as more durable vs. custom XPUs, where the sustainability appears less clear long-term.
Earlier this month, Marvell launched the Teralynx T100, the industry’s first 102.4 Tbps switch silicon purpose-built for the AI era. The company noted that the Teralynx T100 enables the lowest power consumption and lowest latency at this bandwidth tier to address critical bottlenecks in today’s large AI clusters, delivering up to 25% lower power than competitive solutions.
Marvell Technology, Inc. (NASDAQ:MRVL) offers semiconductor solutions for AI, cloud, carrier, and enterprise infrastructure.
