AI-based stocks have dominated the global stock market, especially companies that are building the chips to run AI models. Nvidia (NVDA) is a clear example of how the market has sided with AI-focussed companies. NVDA’s stock price has skyrocketed over the last few years, making it the most valuable company in the world today. While many missed the Nvidia (NVDA) boat, Wall Street has named two AI stocks that could see massive upside in the future. Let’s discuss.
2 AI Stocks To Look At According To Wall Street
The first AI stock you could consider is Micron (MU). Micron (MU) manufactures memory chips which play a crucial role in the working of AI computation. MU has been one of the biggest beneficiaries of the AI boom and Wall Street is quite bullish on the company’s future. The stock’s price has risen by nearly 1170% since 2021. Wall Street’s average price target for Micron (MU) currently sits at $1,515.11. The figure represents an upside of nearly 66% from current price levels.
Also Read: Micron Stock Forecast: Is Another 18% Drop Back to $740 Coming?
The second AI stock Wall Street is bullish on is Broadcom (AVGO). The company provides semiconductors and infrastructure software, which plays an integral part of the tech industry. Wall Street’s average stock price target for Broadcom (AVGO) is $526.30, an upside of about 46% from current price levels.
Risk To Know About
While the AI stock sector has skyrocketed over the last few years, there are some risks that many have pointed at. Firstly, some analysts anticipate an AI bubble burst in the coming years. Michael Burry in particular has been very vocal about his concerns. A bubble burst may wreck havoc for the stock market.
Secondly, many analysts have also hinted at the memory market hitting a peak. Stock such as Micron (MU) could take a hit under such circumstances.