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.
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. (NASDAQ:INTC) 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 (NASDAQ:SNDK) 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. (NASDAQ:AMD) 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.
While we acknowledge the potential of AMD to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AMD and that has 100x upside potential, check out our report about the cheapest AI stock.
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