Wednesday could be a big day for AI chip stocks as their market-leading rally stalls

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Qualcomm Inc,Broadcom Inc,Micron Technology Inc

Two key events Wednesday could provide a much-needed catalyst for the recently troubled semiconductor sector.

Two key events on Wednesday could provide a much-needed catalyst for the recently troubled semiconductor sector. Nvidia is set to hold its annual shareholder meeting , while Micron Technology is slated to post its fiscal third quarter results after the bell. "You've got two positive catalysts to get these stocks going the other direction on Wednesday," said Paul Meeks, portfolio manager and co-chief investment officer at Harvest Portfolio Management.

mountain Shares over the last five days Citi analyst Christopher Danely upped his price target to $175 from $150 a share heading into the print, also citing expectations for stronger-than-expected guidance and Micron's increasing AI memory exposure. The new price target implies roughly 26% upside from Monday's close. Meeks called the selloff in chip stocks overdone, viewing a long-term runway for the AI theme at a reasonable valuation.

 

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