By Tae Kim
The rally in the chip stock sector isn't over, according to Jefferies.
On Friday, analyst Blayne Curtis said Broadcom, Nvidia, and Marvell Technology are among his favorite chip stock ideas for 2026. He has Buy ratings on all three companies.
"AVGO [Broadcom] remains our Top Pick but NVDA [Nvidia] looks cheap," he wrote.
The analyst has price targets for Broadcom and Marvell of $500 and $120, respectively. He also raised his Nvidia target to $275 from $250.
In early trading Friday, Broadcom stock was up 1.2% to $347.03 and Marvell had risen by 2% to $81.97. Nvidia was up by 0.7% to $188.38. The iShares Semiconductor exchange-traded fund is already up 14% this year.
Curtis expects significant earnings beats versus consensus expectations from Nvidia this year. He also predicts Broadcom's positive earnings momentum could be even stronger. For Marvell, he is optimistic about its custom AI chip business, which he expects to add more customers and deliver strong growth.
On Thursday, chip stocks rose after Taiwan Semiconductor Manufacturing beat expectations for its fourth-quarter and issued a robust outlook for annual capital expenditures ahead of forecasts.
On a conference call, TSMC CEO C.C. Wei said the AI mega-trend continues and that the company is seeing rising AI adoption from consumers, enterprises, and sovereign governments. He also said the large cloud computing companies are providing "strong signals" for demand and are asking for more capacity from TSMC to serve their customers.
Write to Tae Kim at tae.kim@barrons.com
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(END) Dow Jones Newswires
January 16, 2026 11:39 ET (16:39 GMT)
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