In this article, we will look at the 5 Best AI Chip Stocks to Buy for the Long Term. Please visit the 10 Best AI Chip Stocks to Buy for the Long Term if you’d like to see an extended list and methodology behind it.
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. (NASDAQ:MU) 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. (NASDAQ:AVGO) 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. (NYSE:TSM) 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. (NASDAQ:NVDA) 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. (NASDAQ:AMZN) 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.
While we acknowledge the potential of AMZN 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 AMZN and that has 100x upside potential, check out our report about the cheapest AI stock.
READ NEXT: 10 Best AI Stocks to Buy in June and 8 Best Generative AI Stocks to Buy in June.
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