Analysts’ Favorite Nasdaq 100 Stocks That Are Heading into the Second Quarter

Investing in stocks that analysts are most optimistic about could serve as a hedge against uncertainty as the second quarter approaches.

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The past few months have been turbulent for the stock market, with investors grappling with fears of an escalating trade war alongside mixed economic signals.

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In February, the core personal consumption expenditures (PCE) price index—the Federal Reserve’s preferred measure of inflation—rose more than expected. This unexpected uptick suggests inflation may remain at elevated levels longer than anticipated. In response, investors sent stocks lower, as the data cast doubt on whether the Fed will move forward with expected interest rate cuts.

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Against this backdrop of volatility, CNBC Pro screened for stocks in the Nasdaq-100 index that are most favored by analysts heading into the second quarter. The stocks selected met the following criteria:

• They are part of the Nasdaq-100 index.
• At least 55% of analysts covering the stock have a buy rating.
• The average price target suggests at least 35% upside potential.

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Micron Technology: Poised for Growth Despite Recent Setback

One of the stocks on the list is Micron Technology (MU). While the chipmaker has gained about 5% this year, it has seen a 25% decline over the past 12 months. Currently, 68% of analysts covering the stock have issued a buy rating, and the average price target suggests a potential 43% upside.

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Last Friday, Micron shares tumbled 8% in a single trading session, despite reporting better-than-expected earnings and revenue for its fiscal second quarter. The decline stemmed from concerns over the startup costs related to its new semiconductor plant in Idaho.

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However, JPMorgan analyst Harlan Sur reaffirmed his overweight rating on Micron following the earnings report, arguing that the company remains well-positioned for the remainder of the year.

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“We believe the stock should continue to outperform through 2025 as the market continues to discount improving revenue/margin/earnings power on top of strong positive EPS revisions,” Sur wrote in a research note.

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His price target of $135 per share implies a 53% upside from Micron’s closing price last Friday.

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Broadcom: A Strong Pick in AI Connectivity

Another semiconductor stock analysts favor is Broadcom (AVGO). While the stock has fallen 27% this year, it remains 27% higher over the past 12 months. Roughly 70% of analysts covering Broadcom have given it a buy rating, and the consensus price target suggests a 46% upside from current levels.

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Earlier this week, Bank of America named Broadcom as its top pick among large-cap technology stocks, citing the company’s strong position in AI-driven connectivity solutions.

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“Our top pick across the AI connectivity space is AVGO given its wide product portfolio and early CPO adoption,” wrote analyst Vivek Arya.

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Applied Materials: Attractive Valuation and Limited China Exposure

Yet another chip-related stock making the list is Applied Materials (AMAT). The stock has dropped 10% this year and is down 29% over the last 12 months.

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Despite this, the stock’s average price target implies 42% upside, with 73% of analysts covering it issuing a buy rating.

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Last Friday, Jefferies upgraded Applied Materials to a buy from hold, citing an attractive entry point for investors following the stock’s recent weakness.

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Analyst Blayne Curtis raised his price target to $195 from $185, implying a 34% upside from Friday’s closing price.

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Curtis also noted that Applied Materials has the lowest exposure to China among the top U.S. semiconductor companies, making it a relatively safer bet in the current trade environment.

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“Leading Edge and DRAM beneficiary and March guidance brings China exposure to the lowest in the group. Currently trading at the cheapest in the group,” he wrote.

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Other High-Conviction Picks: Nvidia and Alphabet

Two of the "Magnificent Seven" stocks also made the list:

• Nvidia (NVDA) continues to receive strong backing from analysts, with 79% assigning it a buy rating and a price target that suggests a 55% upside. Despite some recent pullbacks, Nvidia remains a key player in AI-driven markets.
• Alphabet (GOOGL), the parent company of Google, also ranked among the top Nasdaq-100 picks, with 66% of analysts rating it as a buy and a 36% upside potential.

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Conclusion: Analysts Identify Opportunities Amid Market Uncertainty

With concerns over inflation, Federal Reserve policy, and global trade tensions weighing on markets, analysts continue to highlight opportunities among select stocks in the Nasdaq-100.

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While semiconductor stocks like Micron, Broadcom, and Applied Materials have experienced volatility, analysts remain optimistic about their long-term prospects. Additionally, tech giants Nvidia and Alphabet continue to be widely favored as AI and cloud computing trends gain momentum.

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For investors looking to navigate uncertain market conditions, focusing on stocks with strong analyst backing and significant upside potential could be a strategic approach in the second quarter.

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