Goldman Sees Nvidia, Broadcom, Analog Devices, NXP as Top Semiconductor Picks Ahead of Earnings Season

Citi analysts have upgraded their outlook for the semiconductor sector ahead of the upcoming earnings season, citing stronger-than-expected results and upward revisions to profit forecasts. The firm’s Atif Malik highlighted robust data center demand driven by AI and general-purpose servers as the primary growth catalyst, while downplaying near-term risks in PC and smartphone chip segments due to rising material costs. Among individual stocks, Citi maintains “Buy” ratings on Broadcom (AVGO-US), Nvidia (NVDA-US), Analog Devices (ADI-US), and NXP Semiconductors (NXPI-US). Malik noted that recent pullbacks in AI-related stocks—due to uncertainty around OpenAI and Oracle (ORCL-US)—have created attractive entry points for AVGO and NVDA, whose growth remains anchored in next-generation AI inference models and network infrastructure demand. He also pointed to Nvidia’s recent CES signals indicating continued upside in data center demand, alongside TSMC (TSM-US) raising its 2026 revenue and capex guidance, which bolstered confidence in advanced chip demand. In analog semiconductors, ADI and NXPI are favored for valuation and fundamentals despite uncertain recovery duration. Meanwhile, Qualcomm (QCOM-US) is viewed with caution post-earnings due to ongoing concerns over Apple (AAPL-US) data services partnerships. Analysts estimate Nvidia’s average price target at $263.44, implying over 47% upside potential. Other banks, including Bank of America, continue to highlight NVDA and AVGO as top 2026 picks, with AMD (AMD-US) added to the list amid sustained AI infrastructure investment.