Ross Gerber, co-founder of Gerber Kawasaki, revealed that his team sold small positions in key semiconductor stocks, including Micron Technology Inc (NASDAQ:MU), Nvidia Corp (NASDAQ:NVDA), and Broadcom Inc (NASDAQ:AVGO), to adhere to diversification limits capping sector exposure at 25%.
In a recent post on X, Gerber explained, “Today we had to sell a small amount of our positions in semis – Micron, Nvidia and Broadcom.” He emphasized, “This was a requirement of diversification in my fund of 25% max in a sector, not because of my desire in any way. I am very bullish on these companies.”
Semiconductor Sector Surges on AI Demand
Semiconductor stocks continue their strong rally this year, driven by the AI boom. The PHLX Semiconductor Index recently hit its highest level since March 2000.
Micron Technology (MU) Performance
Micron has surged over 714% in the past year and 172% year-to-date, pushing its market cap close to $900 billion and ranking it among the top 10 most valuable U.S. tech firms. As of May 14, shares traded at $776.01.
Gerber projects the stock could climb to $1,140, based on expected earnings per share of $57 in 2026 and over $100 in 2027, implying about 47% upside. Bank of America recently lifted its price target to $950 from $500, reflecting optimism in the memory market.
Nvidia (NVDA) Hits Record Highs
Nvidia shares have risen 74% over the past year and 26.4% year-to-date, reaching a record $236.54 on Thursday. Strong AI demand for compute capacity outpaces supply, fueling growth.
Wells Fargo raised its price target to $315 from $265, underscoring confidence in Nvidia’s AI leadership.
Broadcom (AVGO) Benefits from Custom Chips
Broadcom hit a new high of $442.36 on Thursday, up 89% in the past year and 27% year-to-date. The company gains from hyperscalers diversifying beyond Nvidia with custom chips.
Wells Fargo increased its target to $545 from $430, noting Wall Street may underestimate AI infrastructure demand tied to data center growth.
