BofA Reveals Top AI Semiconductor Picks: NVIDIA (NVDA), Broadcom (AVGO), and AMD Lead

Key Highlights

• BofA analysts designated NVIDIA, Broadcom, and AMD as premier AI computing investments with targets set at $300, $450, and $280 respectively
• French AI firm Mistral AI secured $830M funding to acquire approximately 13,800 Nvidia GB300 GPUs, representing roughly $575M in semiconductor revenue
• Broadcom secured OpenAI as a chip development collaborator and reported AI orders exceeding $100B for fiscal year 2027
• Aletheia Capital projects AMD’s data center business will surge from $17B in 2025 to $77B by 2028
• Worldwide cloud infrastructure expenditures reached $110.9B in Q4 2025, marking a 29% year-over-year increase

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Bank of America analysts have identified NVIDIA, Broadcom, and Advanced Micro Devices as their preferred investments within the AI computing landscape, establishing specific price objectives and evaluating potential challenges for each semiconductor manufacturer.

This strategic positioning emerges amid accelerating global investments in AI infrastructure. According to Omdia research data, worldwide cloud infrastructure expenditures climbed to $110.9 billion during the fourth quarter of 2025, representing a 29% year-over-year expansion. Projections indicate an additional 27% growth trajectory for 2026.

BofA established a $300 price objective for NVIDIA, calculated at 28 times the company’s projected 2027 earnings. The financial institution highlighted NVIDIA’s commanding position in AI computing hardware and networking infrastructure as primary drivers.

NVIDIA Corporation, NVDA

Cantor Fitzgerald reinforced its Overweight assessment and $300 price objective for NVIDIA subsequent to the company’s GTC conference presentation.

French artificial intelligence developer Mistral AI contributed to bullish momentum. The company secured $830 million through debt financing to construct a data center facility outside Paris, which will accommodate 13,800 of NVIDIA’s GB300 GPUs. Industry analysts calculate the procurement could generate approximately $575 million in semiconductor revenue for NVIDIA.

Space technology venture Starcloud obtained $170 million at a $1.1 billion valuation. The enterprise previously deployed an NVIDIA H100 GPU into orbital operations and has scheduled a second satellite launch featuring a complete GPU cluster this year.

On March 16, NVIDIA unveiled its Space-1 Vera Rubin computing module, engineered to execute data processing in orbital environments rather than transmitting raw information to terrestrial facilities. NVIDIA has not disclosed shipment commencement dates.

Broadcom Projects $100 Billion AI Order Pipeline

Bank of America established a $450 price target for Broadcom, calculated at 26 times projected 2027 earnings. The institution emphasized double-digit earnings expansion and robust free cash flow generation.

Broadcom Inc., AVGO

Broadcom recently secured OpenAI as a chip development collaborator through a multi-year agreement to jointly engineer 10 gigawatts of custom AI accelerators. The semiconductor company maintains similar partnerships with Google, Meta, Amazon, Microsoft, and Anthropic for custom silicon development.

Executive leadership disclosed AI chip orders surpassing $100 billion already secured for fiscal 2027. AI semiconductor revenue projections indicate $10.7 billion for the upcoming quarter.

Broadcom additionally secured a five-year, $970 million agreement with the Defense Information Systems Agency and initiated volume production of its Tomahawk 6 switch chip.

AMD Pursues Data Center Expansion

Bank of America assigned a $280 price target for AMD, emphasizing AI growth momentum and CPU market share expansion.

Aletheia Capital maintained a Buy rating with a $330 price objective. The investment firm anticipates AMD’s server CPU revenue will expand at a 45% compound annual growth rate between 2025 and 2028.

Data center revenue projections indicate growth from $17 billion in 2025 to $77 billion by 2028.

AMD partnered with Celestica to introduce the Helios rack-scale AI platform. AMD also finalized a multi-year licensing agreement with Adeia Inc., settling all pending legal disputes between both entities.

Lisa Su received appointment to President Trump’s Council of Advisors on Science and Technology.

AMD management conveyed conservative outlooks for its client and gaming divisions due to escalating memory component costs.

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