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 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. offers semiconductor solutions for AI, cloud, carrier, and enterprise infrastructure.
8. Intel Corp. (NASDAQ:INTC)
Market Capitalization: $664.84 billion
Number of Hedge Fund Holders: 112
Intel Corp. (NASDAQ:INTC) is one of the 10 Best AI Chip Stocks to Buy for the Long Term. Intel shares have surged 486.61% in the past year and an equally impressive 235.91% year-to-date. On June 21, Mizuho analyst Vijay Rakesh increased the price target on the stock to $135 from $128 while maintaining a Neutral rating, according to a report by TheFly.
The analyst said Intel may see tailwinds in its EMIB-T and Foveros packaging technologies, adding that the company may witness a 10%-15% advanced packaging market share over the long term.
On June 18, Intel announced the appointment of Seok-Hee Lee as executive vice president of Intel Foundry. In a bid to strengthen the company’s ability to deliver differentiated, system-level innovation for customers, Lee is tasked to lead all advanced packaging, system integration, back-end technology development, and back-end manufacturing.
Intel said it is establishing advanced packaging as a focused business with dedicated leadership, in line with its continued evolution of the Intel Foundry strategy. It emphasized that the focus reflects the growing importance and complexity of packaging as a key enabler of performance, power efficiency, and heterogeneous integration across AI systems.
Intel Corp. designs and manufactures advanced semiconductors that connect and power the modern world. It creates new technologies that enhance and shape the future of computing.
7. Sandisk Corporation (NASDAQ:SNDK)
Market Capitalization: $290.79 billion
Number of Hedge Fund Holders: 114
Sandisk Corporation (NASDAQ:SNDK) is one of the 10 Best AI Chip Stocks to Buy for the Long Term. The share price of Sandisk has skyrocketed 4,047.87% in the past year and an equally impressive 613.41% year-to-date. Based on 28 analyst ratings compiled by CNN, 79% have assigned a Buy rating to Sandisk, while 18% have assigned a Hold rating. The stock has an average price target of $1,702, 13.32% lower than the current price of $1,963.60.
Earlier this month, several analysts raised their price targets on Sandisk amid strong pricing trends. On June 8, BofA analyst Wamsi Mohan increased the price target on SanDisk to $2,100 from $1,550 while maintaining a Buy rating on the stock, according to a report by TheFly. The analyst attributed the higher price target to strong trends in pricing and continued strong demand, citing an increase in its FY27 revenue and EPS estimates to $44 billion and $188, respectively.
Similarly, Mizuho Analyst Vijay Rakesh also boosted its price target on Sandisk to $2,200 from $1,825, while keeping an Outperform rating amid the tailwinds driving NAND demand, according to a report by Investing.com.
Moreover, Cantor Fitzgerald also increased its price target on Sandisk to $2,900 from $1,800 while maintaining an Overweight rating on the shares, also citing sustainable tailwinds in the new AI-driven memory paradigm.
Sandisk Corporation is a developer, manufacturer, and provider of data storage devices and solutions based on NAND flash technology.
6. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Market Capitalization: $847.67 billion
Number of Hedge Fund Holders: 134
Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the 10 Best AI Chip Stocks to Buy for the Long Term. The stock posted an impressive 275.53% growth in the past year, while it registered a 132.63 % year-to-date increase. On June 24, the company reported that it was named by research and advisory firm Gartner as “The Company to Beat for Enterprise AI Server CPUs,” highlighting its I/O bandwidth, server consolidation capabilities, and alignment with agentic AI orchestration.
Earlier on June 17, Bernstein increased the price target on AMD to $600 from $525 while maintaining an Outperform rating on the stock, according to a report by TheFly. The analyst said it sees the company benefiting from stronger server demand, adding that its existing AMD model was already consistent with a stronger server CPU environment and estimates a marginal move.
On June 15, AMD announced the acquisition of MEXT, a pioneer in AI-driven memory optimization technology, to advance memory optimization for compute infrastructure. It added that this helps customers with memory optimization technology designed to improve performance, reduce the total cost of ownership, and accelerate time to deployment.
AMD said the acquisition adds to its ability to deliver differentiated, full-stack compute and AI solutions. It added:
“By integrating MEXT’s technology across the AMD data center portfolio, we expect to help enterprise customers unlock greater value from their infrastructure investments while accelerating AI deployment,” AMD said.
Advanced Micro Devices, Inc. offers full-stack AI solutions that provide the performance and scalability needed for a new era of intelligent computing with its portfolio of AI-optimized CPUs, GPUs, networking, and software.
5. Micron Technology Inc. (NASDAQ:MU)
Market Capitalization: $1.19 trillion
Number of Hedge Fund Holders: 154
Micron Technology Inc. (NASDAQ:MU) is one of the 10 Best AI Chip Stocks to Buy for the Long Term. Micron’s share prices have zoomed 722.27% in the past year, while it has increased 233.45% year-to-date.
On June 22, Micron announced a strategic partnership with Anthropic to scale next-generation AI infrastructure. In a press statement, Micron said the agreement spans memory and storage AI architecture design, supply and demand, and enterprise adoption of Claude across the company. Additionally, it also includes a strategic investment in Anthropic’s Series H funding round.
Among the key points of the collaboration is a memory and storage supply agreement spanning Micron’s industry-leading data center portfolio, in which Micron will support Anthropic’s multi-year growth trajectory as the frontier AI lab scales its compute strategy over the long term.
In other news, TheFly reported on the same day that Needham increased its price target on Micron to $1,550 from $500 while maintaining a Buy rating on the stock, citing the continued strength of the memory market.
The analyst forecasts strong market fundamentals to persist, driven by the continued strong demand, a robust pricing environment, and limited capacity additions. Additionally, the analyst also cited optimism for the long-term agreements being signed in the industry, as it provides suppliers with better demand visibility that extends over multiple years.
Micron Technology Inc. designs, develops, manufactures, and markets memory and storage products, including dynamic random-access memory (DRAM), flash memory (NAND), solid-state drives (SSDs), and High Bandwidth Memory (HBM) globally.
4. Broadcom Inc. (NASDAQ:AVGO)
Market Capitalization: $1.81 trillion
Number of Hedge Fund Holders: 173
Broadcom Inc. (NASDAQ:AVGO) is one of the 10 Best AI Chip Stocks to Buy for the Long Term. In the past year, the stock grew 44.12%, while it posted a 9.36% year-to-date growth. Based on 55 analyst ratings compiled by CNN, 93% have assigned a Buy rating to Broadcom, while 7% have assigned a Hold rating. The stock has a median price target of $525, a 38.10% upside from the current price of $380.15.
On June 17, JPMorgan maintained its Overweight rating on Broadcom and kept the price target of $580, according to a report by Investing.com. The analyst emphasized that the company remains on track to ramp its next-generation TPU v9 2nm chip in 2028, contrary to reports from side analysts, Asia supply chain sources, and news outlets about its delay.
Earlier this month, Broadcom established a landmark strategic platform with Apollo and Blackstone to accelerate more than 20 gigawatts of global AI deployments. The AI XPV Platform uses Broadcom’s XPUs and networking solutions customized for leading frontier AI labs, including Anthropic and OpenAI.
The platform was launched on June 9 with an initial tranche of $35 billion, led by Apollo in partnership with Blackstone, to facilitate Anthropic’s capacity expansion of more than 1 gigawatt of compute infrastructure, expected to be deployed at Fluid stack-based sites starting in mid-2026.
Broadcom Inc. is a technology leader that designs, develops, and supplies semiconductors and infrastructure software for global organizations’ complex, mission-critical needs. Broadcom combines long-term R&D investment with superb execution to deliver the best technology at scale.
3. Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)
Market Capitalization: $2.29 trillion
Number of Hedge Fund Holders: 234
Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) is one of the 10 Best AI Chip Stocks to Buy for the Long Term. The stock jumped 98.28% over the past year and increased 36.54% year-to-date. On June 22, TheFly reported that Susquehanna analyst Mehdi Hosseini increased the price target on Taiwan Semiconductor Manufacturing to $575 from $500 while maintaining a Positive rating on the stock.
The analyst updated its model, including its capex and capacity strategy, noting that it expects the company to exceed both consensus and buy-side expectations. In contrast, the analyst noted that key uncertainties remain, such as how associated silicon requirements could drive potential supply-demand imbalances.
Earlier on June 16, Taiwan Semiconductor Manufacturing announced a 10-year agreement with Amkor Technology, Inc., aimed at accelerating advanced semiconductor packaging capabilities in the U.S. semiconductor supply chain ecosystem.
Under the agreement, a collaboration framework will be established for Taiwan Semiconductor Manufacturing to procure advanced packaging and testing services from Amkor. As they work together to expand capacity, the companies said they look to enable a more efficient, mutually beneficial operating model while strengthening their ability to support customers’ evolving requirements.
Taiwan Semiconductor Manufacturing Company Ltd. is a dedicated semiconductor foundry, providing advanced process technologies and manufacturing capabilities to enable innovation across a wide range of industries.
2. NVIDIA Corp. (NASDAQ:NVDA)
Market Capitalization:$4.84 trillion
Number of Hedge Fund Holders: 275
NVIDIA Corp. (NASDAQ:NVDA) is one of the 10 Best AI Chip Stocks to Buy for the Long Term. NVIDIA’s stock has surged 35.25% in the past year and 5.93% year-to-date. Based on 67 analyst ratings compiled by CNN, 94% have assigned the stock a Buy rating, while 4% placed a Hold rating. The stock currently has an average price target of $300, implying a 49.97% upside from the current price of $200.04.
On June 22, Nvidia launched a platform for scientific computers. In a press release, the company said the Nvidia Vera Rubin platform combines native double-precision performance, Nvidia CUDA-X libraries, and the full-stack capabilities of the Nvidia AI platform.
As it brings together the company’s accelerated computing stack, Nvidia said Vera Rubin accelerates AI, simulation, and data-intensive research, transforming each system rack into a supercomputer for scientific discovery.
In related news, the company shared that the new supercomputers at the Los Alamos National Laboratory (LANL) will use Nvidia Vera CPUs to accelerate scientific discovery, unlocking agentic AI for science. It added that the supercomputers will use the HPE Cray Supercomputing GX5000 architecture with the Nvidia Vera Rubin platform, combining Nvidia Vera CPUs, Nvidia Rubin GPUs, and Nvidia Quantum-X800 InfiniBand networking.
Meanwhile, the company launched ‘Nvidia Halos for Robotics’, which is the industry’s first full-stack, comprehensive safety system for robotics and physical AI, enabling companies to rely on a standardized, unified safety architecture that connects AI compute, system software, sensor data, safety applications, and inspection for robotic systems. It added that humanoid robotics and physical AI company Agility is the first to use Nvidia Halos for Robotics to build safety into its humanoids working in factories, warehouses, and logistics operations for its various customers.
NVIDIA Corp. designs and manufactures graphics processing units (GPUs), system-on-a-chip units (SoCs), and AI hardware and software. Its GPUs are used in gaming, high-performance computing, AI training, and inference and serve as the backbone of data center infrastructure worldwide.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Market Capitalization:$2.52 trillion
Number of Hedge Fund Holders: 353
Amazon.com, Inc. (NASDAQ:AMZN) is one of the 10 Best AI Chip Stocks to Buy for the Long Term. Amazon’s share price increased by 10.03% over the past year and by 3.36% year-to-date. Out of 73 analyst ratings compiled by CNN, 97% have assigned a Buy rating on the stock, while 3% marked it Hold. The stock currently has a median price target of $319.50, a 36.47% upside from the current price of $234.11.
On June 22, TheFly reported that ArcelorMittal (MT) announced that it has entered into a strategic collaboration with Amazon Web Services (AMZN) aimed at accelerating industrial automation across its global operations through advanced cloud, artificial intelligence, and edge technologies.
Under the collaboration, AWS will bring its cloud and AI capabilities directly to ArcelorMittal’s manufacturing processes. For its part, ArcelorMittal will converge some of its operational technology and information technology on AWS infrastructure.
Earlier, on June 18, Investing.com reported that BofA Securities maintained a Buy rating on Amazon with a price target of $310.00, citing the shift of Prime Day to June this year compared to July last year.
The analyst forecasts first-party Prime Day gross merchandise value to grow 4.5% year-over-year to $11.6 billion, while third-party GMV is estimated to grow 5.0% to $10 billion. BofA is projecting its total Prime Day GMV to increase approximately 5% to $21.6 billion.
Amazon.com, Inc. is a global technology company operating through multiple interconnected business units. While well-known as an online retailer, it is also a major player in cloud computing, digital streaming, and artificial intelligence.
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