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Bernstein just came out with its top chip stocks for 2026 list, and there is hardly anything surprising. Nvidia (NVDA) and Broadcom (AVGO) continue to be the favorites, as both are instrumental in serving the global chip manufacturing needs. Analysts at Bernstein believe the valuation continues to be attractive for both these stocks, as AI spending shows no signs of slowing. Surprisingly, they rate Nvidia as a better pick over Advanced Micro Devices (AMD). At a time when AMD’s expertise in inference is leading the AMD vs. Nvidia debate, this is rather interesting. Bernstein is confident about Nvidia’s product roadmap and clearly doesn't believe Nvidia is behind Lisa Su’s firm when it comes to leading the inference race.
Valuations for some other stocks do not appear to be as attractive. Micron (MU) and Applied Materials (AMAT) are examples that have shot up recently and appear to be in bubble territory. That hasn’t stopped Bernstein from maintaining a bullish stance on them, with Applied Materials getting a special mention. The research firm rates AMAT “Outperform,” even when it is currently trading at 52-week highs.
