Citi Picks Its ‘Top 4 AI Chip Stocks’ After Earnings

Citigroup C +0.06% ▲ is bullish on select semiconductor stocks following the latest earnings reports. The bank highlighted Nvidia NVDA +2.72% ▲ , Broadcom AVGO +4.62% ▲ , Texas Instruments TXN +1.54% ▲ , and Monolithic Power Systems MPWR +3.80% ▲ as its “top picks” in the sector and maintained Buy ratings on all four stocks. In a recent note, Citi analysts said strong demand from AI data centers continues to support these chipmakers.

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Why Citi Likes These Chip Stocks

Citi noted that data centers account for about 34% of semiconductor demand, making it the largest end market for the industry. Spending on AI infrastructure continues to support demand for advanced chips.

Meanwhile, the industrial chip market, which represents about 10% of semiconductor demand, is performing slightly better than usual seasonal trends. Also, the automotive chip market, which makes up roughly 11% of demand, is holding steady.

Citi’s Top 4 Picks:

**1. Nvidia NVDA +2.72% ▲ **

Nvidia delivered another solid quarterly performance, beating sales and earnings estimates amid rising AI demand from hyperscalers. The company showed $68.1 billion in sales, which is a 73% jump from the year before. Most of this money came from big tech companies like Microsoft MSFT +0.11% ▲ and Meta META +0.39% ▲ buying its latest Blackwell and Rubin chips.

On Wall Street, Nvidia stands out, with analysts projecting about 49% upside and a Strong Buy rating.

**2. Broadcom ($**AVGO)

The chipmaker reported upbeat Q1 results and issued a strong revenue outlook for the next quarter. Broadcom’s adjusted earnings per share (EPS) of $2.05 beat the consensus of $2.03 in Q1 FY26. Revenue surged 29% year-over-year to $19.31 billion, surpassing expectations of $19.18 billion.

According to analysts, Broadcom also has a Strong Buy rating and roughly 33% upside.

**3. Texas Instruments TXN +1.54% ▲  **

Texas Instruments reported Q4 2025 earnings per share (EPS) of $1.27, slightly below the consensus estimate of $1.29, while revenue came in at $4.42 billion, just shy of Wall Street expectations of $4.44 billion, though sales rose 10% year over year. However, the company issued strong guidance for the current quarter, projecting revenue of $4.32 billion to $4.68 billion and EPS of $1.22 to $1.48, both above analysts’ forecasts.

At $222.63, TXN’s average price target suggests about 13.47% upside from current levels.

**3. Monolithic Power Systems MPWR +3.80% ▲ **

Monolithic Power Systems reported Q4 2025 earnings per share (EPS) of $4.79, beating analysts’ estimates of about $4.73. Revenue reached $751.2 million, up about 20.8% year over year and above expectations of roughly $740 million. The company also projected Q1 revenue of $770 million to $790 million, pointing to continued demand across its markets.

According to analysts, Monolithic Power also has a Strong Buy rating and roughly 23% upside.

Which Is the Best AI Chip Stock, According to Analysts?

Using TipRanks’ Stock Comparison Tool, we compared leading AI chip stocks to see which one offers the highest upside potential based on Wall Street analyst forecasts.

Investors can dig deeper to decide which AI chip stock best fits their strategy. Below is a screenshot for reference.

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