tech
January 2, 2026
These two semi stocks lagged in 2025. Why Loop Capital sees them doing well in 2026
The firm expects semiconductor sales growth in 2026 to broaden out and include acceleration in automotive and industrial chips.
TL;DR
- Loop Capital predicts a broad-based rally in semiconductor stocks in 2026, expanding beyond AI data centers.
- Growth is expected to accelerate in automotive and industrial chip sectors.
- Loop Capital has named ON Semiconductor (mid-cap) and Synopsys (large-cap) as their top semiconductor stock picks for 2026.
- Synopsys' price target was raised to $600, implying a potential 28% increase, driven by the Electronic Design Automation market and Nvidia's investment.
- ON Semiconductor's price target was set at $75, suggesting a potential 38.5% rally, with expectations of improved manufacturing utilization and a shift to higher-margin products.
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