Top semiconductor stocks that investors are watching in May: Nvida, AMD, Micron Lead

TLDR

• Demand for artificial intelligence is driving a broad-based rally in semiconductor stocks, with the PHLX Semiconductor Index outperforming the S&P 500 by its largest margin in more than a year.
• Nvidia has the strongest analyst ratings of the group with 48 buy ratings and zero sells
• AMD reports Q1 revenue of $10.25 billion with data center revenue up 57%, prompting price target upgrades from at least 20 brokerages
• Micron had its best week since 2008, rising 30% over five sessions on demand for AI memory
• ASML is the only stock in the group with Sell ratings, with 2 Sells along with 21 Buys

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AI is still the biggest force in the stock market right now. Chip companies are at the heart of this story, and five names continue to emerge for investors monitoring the semiconductor sector in May 2026.

The PHLX Semiconductor Index recently outperformed the S&P 500 by its largest margin in more than a year. The rise has been broad-based, touching GPU makers, memory companies, chip equipment suppliers, and networking companies.

Here’s a closer look at the five semiconductor stocks that investors are watching closely.

Nvidia

Nvidia It remains the leader in artificial intelligence chips. Its GPUs power and run advanced workouts Artificial intelligence modelsAnd its software and networking ecosystem makes it more than just a hardware company.

Nvidia Corporation, NVDA

Wall Street agrees. Nvidia has 48 Buy ratings, 4 Strong Buys, 2 Holds, and 0 Sell ratings according to MarketBeat data. This is one of the most one-sided analyst consensus readings on the market.

The main risk is valuation. The stock has already had a significant rally, and continued gains depend on whether earnings continue to beat high expectations.

AMD

Advanced Micro Devices is Nvidia’s biggest competitor in AI chips. The company reported first-quarter adjusted EPS of $1.37 on revenue of $10.25 billion, with data center revenue up 57% year over year.

Advanced Micro Devices, Inc., AMD

AMD Second-quarter revenue was guided at about $11.2 billion, higher than analysts expected. At least 20 brokerage firms raised their price targets after the earnings report.

Analyst ratings stand at 30 Buys, 2 Strong Buys, 12 Buys and 0 Sells. The risk is that expectations have risen rapidly along with the stock price.

Broadcom

Broadcom It gives investors exposure to AI beyond GPUs. The company is associated with custom AI chips, networking hardware and cloud infrastructure spending by major technology companies.

Reports have linked Broadcom to making custom AI chips with OpenAI, though questions about funding and customer focus have also emerged. Analysts rate it at 27 Buys, 2 Strong Buys, 4 Buys and 0 Sells.

Micron technology

Micron is the memory play in this group. AI data centers require high-bandwidth memory, and Micron has been a direct beneficiary of this demand.

Micron had its best week since 2008, rising 30% over five trading sessions and surpassing JPMorgan’s market cap, MarketWatch reported. Analysts have 30 buys, 5 strong buys, and 4 buys on the stock and no sells.

The danger is that memory is historically a cyclical business, and that pricing power could reverse if supply increases.

ASML

ASML manufactures lithography machines used to manufacture advanced chips. Without ASML equipment, companies like Nvidia, AMD, and TSMC cannot produce the most advanced semiconductors.

This makes ASML essential to the supply chain and not a direct vendor of chips. It carries 21 Buy, 3 Strong Buy, 6 Hold, and 2 Sell ratings – the only stock in this group with any Sell ratings. Export controls and high customer spending cycles are key risks to monitor.

Final thoughts

The semiconductor sector is driven by real demand, not just hype. AI data centers need the chips, memory, and machinery to build them, and these five companies are at the center of that. Analyst ratings across the group are widely positive, although valuations have risen sharply, so investors should weigh risk alongside opportunity.