Bank of America remains bullish on several semiconductor stocks heading into Q4, arguing that AI infrastructure spending still has room to grow.
Nvidia (NVDA)
BofA maintains a Buy rating on Nvidia with a $350 price target.
The bank expects continued AI computing demand, Nvidia's Vera Rubin platform and sustained hyperscaler spending to support growth.
The main risk is expectations. Nvidia already carries a premium valuation, so any slowdown in AI spending could pressure the stock.
Micron (MU)
BofA also remains bullish on Micron, with a Buy rating and $1,550 price target.
Its thesis centers on strong demand for high-bandwidth memory used in AI servers. Tight supply and growing data-center demand could keep memory pricing stronger for longer than in previous cycles.
The main risk is the semiconductor memory cycle. Additional supply could eventually pressure prices and margins.
Intel (INTC)
Intel is the more contrarian pick. BofA maintains a Buy rating with a $145 price target.
The firm sees improving manufacturing execution, stronger AI-related CPU demand and potential foundry wins as possible catalysts.
Intel carries significantly more execution risk than Nvidia or Micron, making it the higher-risk turnaround bet.
Bottom line: BofA sees Nvidia as the established AI leader, Micron as an AI memory play and Intel as a turnaround opportunity.