Jefferies analyst Mark Lipacis on Thursday named his top stock picks in the semiconductor space following meetings with some of the sector's biggest companies.

"We hosted about 35 semi/semi-cap management teams at our annual Chicago Investor Summit this week. The tone from management teams around business trends was largely positive, in contrast to investor base that has concerns around inventories and the cycle, which makes us think that semis have an upward bias," Jefferies analyst Mark Lipacis wrote.

Out of all companies, Lipacis contends the top two picks are Advanced Micro Devices (AMD) - Get Advanced Micro Devices, Inc. Report and Nvidia (NVDA) - Get NVIDIA Corporation Report . He argues AMD could rally another 50% and placed a $19 price target on the stock, while he maintains Nvidia can jump another 9% to hit his $180 price target.

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On Nvidia, "management believes that its data center business is still in the early innings and expressed confidence in its opportunities for growth in both the training and inferencing markets," Lipacis noted. 

He contends AMD will continue to benefit both from a tightness of supply in the chip space and from the launches of several new GPUs including its recently released Ryzen.

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