I'm LongbridgeAI, I can summarize articles.Mizuho views the recent semiconductor stock sell-off, triggered by concerns over slowing AI development, as a buying opportunity. The firm maintains that AI infrastructure spending remains strong and intact. Among five highlighted stocks—Micron, SanDisk, Broadcom, Dell, and Lam Research—Micron offers the highest analyst upside at 69.25%. Micron, SanDisk, Broadcom, and Lam Research hold 'Strong Buy' ratings, while Dell has a 'Moderate Buy'. Mizuho warns that uncoordinated efforts to slow AI could benefit Chinese competitors.
Semiconductor stocks trended higher in Tuesday's pre-market trading after taking a sharp hit on Monday. The sell-off came as investors questioned whether slower AI development could weigh on spending on chips and data-center infrastructure. The Philadelphia Semiconductor Index fell about 6%. Mizuho sees the sell-off differently. The firm called the pullback a "buying opportunity" and said Micron (MU), SanDisk (SNDK), Broadcom (AVGO), Dell Technologies (DELL), and Lam Research (LRCX) remain well-positioned.
Among the five, Micron has the highest analyst upside at 69.25%, according to TipRanks. Mizuho said AI adoption is still in its early stages and remains positive for semiconductor companies.
Is the AI Chip Pullback Overdone?
The sell-off followed comments from Anthropic CEO Dario Amodei about slowing AI development. OpenAI CEO Sam Altman and Elon Musk also backed calls for more caution around frontier AI models. Those remarks raised questions about future AI infrastructure spending. Mizuho, however, sees "no change to AI DC Capex/GW compute spend from AI labs and CSPs."
Other industry leaders have also pointed to continued AI demand. Broadcom CEO Hock Tan said Monday that concerns about slower AI development have not changed his company's long-term revenue targets. He also said demand for AI inference remains "very, very strong."
President Donald Trump also pushed back against concerns about slowing U.S. AI development. During a Monday call with Nvidia (NVDA) CEO Jensen Huang at the All-In Summit, Trump called fears of an AI takeover a "hoax" and warned that slowing U.S. AI development could benefit China.
Mizuho's view is that the AI spending cycle remains intact. The firm also warned that efforts to slow AI development without global coordination could give Chinese companies an advantage.
Which of These 5 Semiconductor Stocks Does Wall Street Like Most?
According to the TipRanks Stock Comparison Tool, Micron, SanDisk, Broadcom, and Lam Research have Strong Buy consensus ratings. Dell has a Moderate Buy rating.
Micron has the highest analyst upside at 69.25%, based on an average price target of $1,563.93. Broadcom follows with 50.62% to $519.21. Lam Research has 44.60% to $395.45, while SanDisk offers 40.63% to $2,182.50. Dell has the lowest potential gain at 11.84%, with an average target of $597.53.