Goldman Sachs' latest strong buy list is out: The AI craze is still going strong, naming Nvidia and Broadcom as the leaders of five potential stocks.

In a market environment where technology stocks continue to be volatile, Goldman Sachs' report listed five top stocks rated as “Buy”. In addition to maintaining optimism about AI giants Broadcom and NVIDIA, it is also optimistic about EDA software's CDN and equipment manufacturer AMAT. The report specifically pointed out that Microchip is expected to welcome a revival in analog chips.

AI Titans: Nvidia and Broadcom Continue to Dominate

The report primarily recommends Broadcom ( AVGO ) and Nvidia ( NVDA ), believing that these two companies will continue to dominate the AI computing market.

Goldman Sachs gives a target price for Broadcom (AVGO). Analysts are optimistic that Broadcom can leverage its scale advantages in networking and custom chips (ASIC) to continue expanding its market share among hyperscale cloud service providers. The report specifically mentions that Google’s recent momentum further solidifies Broadcom’s market leadership, and its partnerships with Meta, Anthropic, and OpenAI will bring potential upside.

$450 Broadcom ( Q4 earnings report exceeded expectations! Secured a $10 billion order from Google TPU, stock price fell 4.6%(

Nvidia )NVDA): Target price ( Regarding AI leader NVIDIA, analysts emphasize its sustainable model advantage in AI training applications that surpasses its peers. As large enterprises increase capital expenditures, NVIDIA remains a major beneficiary. Management reaffirmed the outlook for data center revenue of approximately $500 billion for 2025/26, indicating that the current valuation remains attractive.

Infrastructure and Equipment: Cadence and AMAT are poised for action.

In addition to chip designers, the report also names upstream EDA software and equipment manufacturers.

Cadence )CDNS$250 : Target Price ( Cadence is regarded as a high-quality compound growth company. Analysts point out that with the expansion of its customer base, the acceleration of its IP business, and the significant pricing power of its core EDA business, the company will benefit from multiple industry themes.

Applied Materials )AMAT$410 : Target price ( The report believes that AMAT's performance in the equipment sector will outperform its peers. This is mainly attributed to its significant exposure in the areas of deposition and etch, which are critical for GAA logic chips and stacked memory structures, and will benefit from the increase in related expenditures.

Cyclical Recovery: Microchip Analog Chips Welcome a Turning Point

Unlike the aforementioned AI growth stocks, Microchip )MCHP$250 's inclusion represents an optimistic outlook on the traditional semiconductor cycle. The target price given for Microchip (MCHP) in a Goldman Sachs report is $88, with analysts believing that the cyclical recovery of analog chips is underway. Given that current shipment volumes have dropped to a low compared to pre-pandemic levels, significant room for revenue and profit margin increases is expected over the next 4 to 6 quarters.

This article reveals Goldman Sachs' latest strong buy list: the AI frenzy continues, naming NVIDIA and Broadcom leading five potential stocks, first appearing in Chain News ABMedia.