‘Own Nvidia, Broadcom,’ But Avoid AMD Stock – Bernstein Weighs In on AI Chip Stocks

FomoAnxiety · 2026-03-24T06:52:01+00:00

Bernstein distinguishes between AI chip leaders Nvidia and Broadcom, who have strong demand, and AMD, which lacks clear customer support. Rising AI demand strains supply and raises component costs, impacting tech margins. Nvidia holds the highest upside potential among the three.

FomoAnxiety

2026-03-24 06:52:01

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Nvidia NVDA +1.70% ▲ , Broadcom AVGO +4.08% ▲ , and Advanced Micro Devices AMD +0.67% ▲ remain key players in the AI chip space, but Bernstein is drawing a clear line between the winners and the laggards.

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Top analyst Stacy Rasgon said AI demand is still strong, but not all stocks are benefiting equally. While Nvidia and Broadcom continue to see solid demand and attractive valuations, the firm is less convinced about AMD, citing the need for clearer signs of sustained customer demand.

Rising AI Demand Is Driving New Challenges

Rasgon said AI demand remains strong, but it is now creating new challenges. A sharp rise in demand is putting pressure on memory supply, pushing prices higher and creating concerns for other parts of the tech market.

As data centers take up more capacity, sectors like PCs and smartphones are starting to feel the impact. Rising component costs are also beginning to show up as a headwind for margins.

Bernstein Backs Nvidia, Broadcom; Stays Cautious on AMD

Despite these issues, Bernstein remains positive on Nvidia and Broadcom. The firm believes demand trends remain intact, and current estimates for both companies may still be too low.

Rasgon noted that both stocks could be trading at around 15x or less based on longer-term earnings, suggesting room for upside if AI demand holds at current levels.

For AMD, Bernstein is taking a more cautious stance. While the stock has rebounded from recent lows, the firm wants clearer proof that customers are choosing AMD’s chips out of real demand, not just limited supply elsewhere.

For now, Bernstein prefers to stay on the sidelines until there is more consistent evidence of growth.

Which Chip Stock Is the Best Buy Right Now?

Turning to Wall Street, out of the three stocks mentioned above, Nvidia offers the highest upside at about 56% and carries a Strong Buy rating from analysts. Broadcom follows with roughly 45% upside and also holds a Strong Buy consensus.

AMD offers around 41% upside but has a more cautious Moderate Buy rating compared to its peers.

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