Three chip stocks are being pitched as still cheap despite the AI rally, which is upbeat for investors but rests on AI spending staying strong.

• Analyst Parkev Tatevosian sees TSMC, Micron and Nvidia each rising more than 40% over the next 12 to 18 months.
• TSMC gains as AI chips spread from data centers into phones, laptops and cars, though tension between China and Taiwan pushes it to build costlier plants abroad.
• Micron rides a wave of data center building — Amazon, Microsoft, Alphabet and Meta are expected to spend over $800 billion next year and more the year after.
• Nvidia still can't make chips fast enough and guides to about 70% growth, but its biggest customers are designing their own chips to cut reliance on it.
• The risk hanging over all three: OpenAI and Anthropic are still losing heavily, raising doubts about how long this spending can last.

Outlook: Expect the AI trade to keep running as long as big tech keeps writing checks, with memory chips the most exposed if that spending turns.