Mizuho has released its top stock picks for September, and it includes a prominent chip maker. It’s been a great start to the month for stocks, including those in the semi space. A week ago, in the first trading session of September, Nvidia lost 9% and wiped about $279 billion of its value for the biggest one-day drop in market capitalization for any US stock in its history. The VanEck Semiconductor ETF ( SMH ) fell almost 12% last week, its worst weekly loss in more than four years. In addition, all three major averages posted sharp weekly declines, with the S&P 500 seeing its worst week since the regional banking crisis of 2023. As the new trading month gets under way, Mizuho highlights the 24 highest-confidence ideas across six sectors. . The latest additions to the Wall Street firm’s top picks list include chip giant Micron Technology and oil and gas company Coterra Energy. Below are some of the firm’s top stock picks for September. Micron is one of the main names on Mizuho’s list. Shares fell 10% last week amid signs of weakness in the sector and have fallen further, having fallen more than 33% in the past three months. But with possible tailwinds of greater AI adoption by next year, Mizuho sees Micron as “well positioned” in the AI ​​arms race, particularly for share gained in the high-throughput memory market. “We also see continued price improvements as drivers of continued upside for MU in traditional DRAM and NAND as in-device AI demands additional content, but demand for such devices remains fairly weak,” analyst Vijay Rakesh wrote in a note to clients. Energy Transfer remains one of the firm’s top picks for September, thanks to its attractive free cash flow yield, growth outlook and discounted valuation. With a $20 price target, the stock is up nearly 26% from Friday’s close. Shares are up more than 15% this year. Like Mizuho, ​​Wolfe Research recently added Energy Transfer to its Alpha List for the month and sees significant upside ahead. Lowe’s is one of three names on Mizuho’s list with more upside than the Street’s consensus. Of the 36 analysts reporting on the retailer, 16 have a buy or strong buy rating on the stock, while 18 are neutral, according to LSEG. The average price is around $256, which is about a 5% rise from Friday’s close. Meanwhile, Mizuho’s $280 price target represents about 15% upside, and the firm sees Lowe’s as “definitely well-positioned” to benefit from the expected recovery in demand in the industry. “As the home improvement sector moves into the later stages of post-pandemic digestion, LOW will result in a more pronounced decline in DIY spending beginning in Q3,” analyst David Bellinger wrote in an analyst note. He added that further easing by the Federal Reserve “could unlock significantly reduced demand.” “We envisage a scenario where existing home sales return to a more favorable ~4.5 million year level and boost sector demand,” Bellinger said. Mizuho is not alone in its stance, as Lowe was also just added to JPMorgan’s September focus list. Shares are up more than 9% this year.
