Analysts at Piper Sandler have rated Nvidia, Broadcom, Arm Holdings, AMD, and Marvell Technology as overweight, forecasting price gains between 19% and 37% driven by surging demand for AI computing power. Nvidia currently commands an 80% market share, while Broadcom leads in custom chips. Recent data shows Nvidia GPU hourly prices have climbed 30% as order books extend through 2028, with projections placing the global compute market at $2.2 trillion by 2030.
Investment strategies are diverging among major tech giants. While Amazon and Alphabet are recommended for portfolios due to their custom AI chips and reasonable valuations—Alphabet recently generated $53 billion in free cash flow—Microsoft faces scrutiny for its higher valuation and recent negative free cash flow. Despite these differences, all three companies plan to invest nearly $500 billion in AI infrastructure this year. Some investors view Nvidia as the top single pick, citing expected 70% revenue growth by fiscal 2028 and a forward P/E of 24.
Regulatory and ethical concerns are reshaping how these companies operate. Microsoft signed a binding agreement with US teachers unions prohibiting the use of student data for AI training and banning AI chatbots for students. Similarly, New York City and Los Angeles school districts have restricted AI tool usage for students, though teachers may use them for lesson planning. Meanwhile, Anthropic CEO Dario Amodei admitted the industry has hidden AI risks for too long, arguing development speed outpaces safety measures.
Other developments include Extreme Networks launching an AI networking tool called Extreme Agent ONE to automate troubleshooting, and the University of North Florida receiving a grant to use AI for updating legacy research code. In the hardware space, AMD and Intel added shared AI instructions to the GCC compiler to improve x86 processor performance. On the ethical front, Chain CEO Mike Johnson called for personal responsibility among AI leaders, following backlash after the DHS removed an AI-generated poster that critics said promoted racial profiling against Sikh and Indian-American truck drivers.
Key Takeaways
- Piper Sandler analysts forecast 19% to 37% gains for Nvidia, Broadcom, Arm Holdings, AMD, and Marvell Technology.
- Nvidia holds an 80% market share with GPU prices rising 30% recently as orders fill through 2028.
- Amazon and Alphabet are recommended for portfolios, while Microsoft is advised against due to valuation and cash flow issues.
- All three major tech companies plan to spend nearly $500 billion on AI infrastructure this year.
- Microsoft signed a binding deal with US teachers unions banning student data use for AI training.
- New York and Los Angeles school districts have imposed strict limits on student access to generative AI.
- Anthropic CEO Dario Amodei stated the industry has lied about AI risks for too long.
- AMD and Intel added shared AI instructions to the GCC compiler to boost x86 processor efficiency.
- Extreme Networks released Extreme Agent ONE to help IT teams automate network troubleshooting.
- The DHS removed an AI-generated poster after backlash over alleged racial profiling of Sikh and Indian-American truck drivers.
Analysts Predict 19% to 37% Gains for Five AI Chip Stocks
Piper Sandler analysts rated Nvidia, Broadcom, Arm Holdings, AMD, and Marvell Technology as overweight stocks. They forecast price increases between 19% and 37% due to high demand for AI computing power. The firm noted that Nvidia holds an 80% market share while Broadcom dominates custom chips. Hourly prices for Nvidia GPUs have risen 30% recently as order books fill up through 2028. The analysts expect the global compute market to reach $2.2 trillion by 2030.
Investors Should Buy Amazon and Alphabet but Avoid Microsoft
A recent analysis suggests investors should add Amazon and Alphabet to their portfolios while avoiding Microsoft. Amazon and Alphabet have developed their own custom AI chips and trade at reasonable valuations. Alphabet generated $53 billion in free cash flow recently and trades at a low P/E ratio of 17. In contrast, Microsoft has a higher valuation and recently saw its free cash flow turn negative. All three companies plan to spend nearly $500 billion on AI infrastructure this year.
Nvidia Remains the Top Choice for a Single AI Stock Purchase
An investor argues that Nvidia is the best single stock to buy in the artificial intelligence sector. The company expects 70% revenue growth during fiscal 2028 driven by massive spending from cloud providers. Nvidia currently trades at 24 times forward earnings, which is considered a cheap valuation for its growth rate. Competitors like Broadcom are also seeing double-digit revenue growth in their AI semiconductor divisions. The author believes the market has not yet priced in Nvidia's full potential for the next few years.
Microsoft Signs Binding Privacy Deal With US Teachers Unions
Microsoft signed a legally binding agreement with the American Federation of Teachers and the United Federation of Teachers. The deal prohibits the company from using student or teacher data to train its artificial intelligence models. It also bans AI companion chatbots for students and requires human review for high-risk automated decisions. Violations would allow school districts to terminate contracts and seek financial damages. The agreement includes ten enforceable protections and takes effect in November.
New York and Los Angeles Schools Restrict AI Tools for Students
New York City and Los Angeles Unified School Districts have imposed strict limits on artificial intelligence use in classrooms. New York banned AI tools for 600,000 students up to eighth grade starting in September. Los Angeles prohibited all students from using generative AI on district devices during the school year. These local restrictions followed by Microsoft to stop using student data for AI training. Teachers can use AI for lesson planning but cannot use it to grade student work.
Aptech and GSL launch Gen AI filmmaking course
Aptech Limited and Get Set Learn have partnered to create a new Generative AI filmmaking course. This program combines Aptech's training network with GSL's creative technology expertise to teach students how to use AI in film production. The course will be delivered through Aptech brands Arena Animation and MAAC using classroom, online, and blended learning methods. Industry professionals will mentor students, and top performers may get internships or have their films showcased. The goal is to prepare the next generation of filmmakers for an industry shaped by artificial intelligence.
Extreme Networks releases new AI networking tool
Extreme Networks has made its Extreme Agent ONE Coworker AI tool available to all Platform ONE subscribers worldwide. This new feature includes a capability called Nudge that scans network data to find and fix issues automatically. The tool helps IT teams reduce manual work by providing recommendations and troubleshooting support for users, devices, and applications. By shifting focus from emergency fixes to planned maintenance, the company aims to lower operating costs for its customers.
UNF receives grant to use AI for legacy code updates
The University of North Florida has received a grant to use artificial intelligence for updating old research software. Researchers led by Associate Professor Upulee Kanewala and Professor Nan Niu will use AI tools to safely restructure legacy code. This project aims to reduce the time and effort needed to maintain complex research programs and keep them up to date. The grant also seeks to prove that AI testing can lower technical barriers for long-term software development in research settings.
Chain CEO says AI leaders must take responsibility
Mike Johnson, CEO of the decentralized social network Chain, told Yahoo Finance that AI leaders must take personal responsibility for their technology. He argued that creators should understand the potential consequences of their AI systems and take steps to prevent harm. Johnson emphasized the need for transparency and accountability as the tech industry debates the ethics of artificial intelligence. His comments join a larger conversation about ensuring AI development is safe and secure for society.
DHS removes AI poster after racial profiling backlash
The U.S. Department of Homeland Security deleted an AI-generated poster that urged a man named Mr Singh to self-deport. The image, posted on September 9, 2026, showed a DHS version of Optimus Prime confronting a bearded man in a turban. Critics from Sikh, Hindu, and Indian-American groups said the ad promoted racial and religious profiling. DHS later explained the character was meant to represent Harjinder Singh, a specific truck driver involved in a fatal crash in Florida in August 2025. Despite this clarification, the graphic was widely seen as targeting Sikh and Indian truck drivers as a group.
Anthropic CEO says industry hid AI risks for too long
Dario Amodei, the head of Anthropic, stated that the technology industry has lied about AI risks for a long time. He believes the current speed of AI development is happening too fast for safety measures to keep up. Amodei argues that companies need to be more honest about the dangers associated with artificial intelligence. His comments highlight growing concerns within the tech sector regarding the uncontrolled growth of AI tools.
AMD and Intel add shared AI instructions to GCC compiler
AMD and Intel have added support for their Shared AI Instructions to the GCC compiler. This update allows developers to use AI Compute Extensions on x86 processors more easily. The new instructions help move AI tasks to the CPU instead of requiring special hardware. This cooperation aims to improve performance and lower power use for AI applications. The move could also help strengthen the stocks of both companies by making x86 a better choice for AI workloads.
Sources
- Wall Street Analyst Sees Between 19% to 37% Upside in These 5 AI Chip Stocks
- Amazon, Alphabet, and Microsoft: Which 2 to Buy and Which 1 to Avoid
- If I Could Only Buy 1 Artificial Intelligence (AI) Stock, This Would Be It
- Microsoft Bars Use of Student Data for AI Training Under New School Deal
- Microsoft bans AI training on student data after New York schools restrict AI use
- Aptech and GSL partner on Gen AI filmmaking course
- Is AI Networking Rollout Altering The Investment Case For Extreme Networks (EXTR)?
- UNF gets prestigeous grant for AI research used in updating computer software
- Mike Johnson Argues AI Leaders Need To ‘Take Personal Responsibility’
- US Homeland Security Deletes AI Generated Mr Singh Poster After Backlash Over Racial Profiling
- Anthropic CEO Dario Amodei: "For too long the industry lied" about AI risks
- AMD and Intel’s Shared AI Instructions Reach GCC. Can Software Cooperation Strengthen Both Stocks?
Comments
Please log in to post a comment.