tech
Bank of America's top chip stocks to play AI in 2026
AI poster child Nvidia is among Bank of America's top six for 2026.
TL;DR
- Bank of America sees AI investments in early to middle stages, expecting continued growth for chipmakers.
- Analysts predict another year of 50%+ YoY growth in AI semis, driven by data center utilization, supply tightness, enterprise adoption, and LLM competition.
- Semiconductor sales are expected to grow approximately 30% in 2026, reaching nearly $1 trillion.
- Top stock picks include Nvidia, with a $275 price objective implying 56% potential upside, due to its leading position in AI compute and networking.
- Broadcom is rated 'buy' with a projected 47% upside, driven by double-digit EPS growth and strong profitability.
- Lam Research has a price target of $195, implying 19% upside, justified by its leadership in etch/deposition products and improving prospects in the memory cycle.