These AI Chip Stocks May Be Just Getting Started

AI chip stocks had a rough week, but 2026 still belongs to them. Micron Technology (NASDAQ:MU | MU Price Prediction) is up 200.33% year-to-date, Marvell Technology (NASDAQ:MRVL) has gained 163.4%, and Taiwan Semiconductor Manufacturing (NYSE:TSM) is up 36.74%.

Thursday’s selloff cut Marvell 8.7% and Micron 6.26%, yet demand at all three continues exceeding supply. Here is what each needs to reach a bold target in 2027.

TSMC Has a Clear Path to $600 as 2nm Ramps

TSMC makes the leading-edge silicon nearly every AI chip runs on. Third-quarter revenue rose 41.2% to $46.72 billion, and 2nm already accounts for 8% of wafer revenue in its first full ramp. Chairman and CEO C.C. Wei said on the October 15 call, “Demand is still far above our capability to supply today.”

Wall Street’s $584.39 target means 42% upside. The 2027 EPS estimate has climbed to $21.9251 from $19.6630 90 days ago. At $412.35, shares trade at 19x 2027 earnings. A $600 share price would lift that to 27x, a 46% gain. Here is what could get TSMC there:

• N2 capacity is expected to more than double in 2027.
• Arizona’s second fab targets volume production in the third quarter of 2027.
• TSMC beat EPS estimates in both Q2 and Q3 2026.

Shares have returned 290.96% over five years, so a gain of this size has precedent.

Custom Silicon Could Carry Marvell to $350

Marvell designs custom accelerators and the optical links that tie AI clusters together. Data center sales jumped 46% to $2.17 billion last quarter.

CEO Matt Murphy said “AI-related bookings remain exceptionally robust.” Management expects fiscal 2028 revenue to grow about 50% and custom revenue to more than double.

The fiscal 2028 EPS estimate has risen to $7.2963 from $6.1994 90 days ago. Shares trade at 31x that figure. At $350, the multiple would be 48x, a 57% gain and above the $341.63 consensus target.

That’s a premium price, but it matches a company growing this fast. The expanded Google partnership and 1.6T optics, which management says are ramping rapidly, could close the gap. The stock already reached $329.73 within the past year.

Micron’s Single-Digit Multiple Leaves Room for $1,600

Memory has become the bottleneck in AI. Micron posted $54.23 billion in fourth-quarter revenue, and EPS of $33.42 beat the $31.35 estimate. That made eight straight beats. CEO Sanjay Mehrotra said he expects “an even stronger fiscal 2027,” and more than 75% of fiscal 2027 shipments are already committed.

The fiscal 2027 EPS estimate has jumped to $176.6868 from $150.0075 90 days ago, so shares trade at just 5x forward earnings. At $1,600, the multiple would still be only 9x. This would deliver an 87% gain, a bit beyond the Street’s $1,560.57 target.

HBM4E volume production in calendar 2027 is the key catalyst. Key risks include a possible strike at a Taiwan union (Reuters) and a turn in the memory cycle.

Why These Targets Stay Within Reach in 2027

Reaching these targets would take gains of 46% for TSMC, 57% for Marvell and 87% for Micron. Estimates are rising at all three companies, and each management team says demand is still running ahead of supply.

A weaker market or a pause in AI spending would make the climb harder. Returns at this level shouldn’t be expected every year, but this is the pattern for how these AI chip stocks could post outsized returns in 2027.

Contact [email protected] for any questions or corrections.