Bank of America analyst Vivek Arya expects global semiconductor sales to break past $1 trillion in 2026, driven largely by accelerating demand for artificial intelligence infrastructure and data-center hardware. Instead of a fading cycle, BofA sees the current technology transformation as midway through a decade-long trend, with significant growth still ahead as companies invest in advanced chips and related systems.

In BofA’s “2026 Year Ahead: choppy, still cheerful” outlook, Arya emphasizes that the best-positioned companies have high margins and durable competitive advantages, making them likely leaders in the semiconductor expansion next year. Analyst forecasts predict roughly a 30 per cent year-over-year increase in semiconductor sales, underscoring how fast chip markets are accelerating.

Here are the six stocks BofA highlights as frontrunners for 2026:

1. Nvidia (NVDA) – Seen as the engine of the AI chip boom, Nvidia’s GPUs are critical to training and running large language models and data-center workloads. The company’s leadership position and projected free cash flow support its role as a core growth driver.

2. Broadcom (AVGO) – A major player in custom silicon and AI infrastructure, Broadcom is pivoting from traditional components to chips tailored for hyperscale cloud providers and enterprise AI stacks.

3. Lam Research (LRCX) – Provides advanced chip-making equipment used in fabricating complex semiconductors. As AI demand pushes production capacity, capital-equipment suppliers like Lam are expected to benefit.

4. KLA (KLAC) – A leader in semiconductor process control and inspection tools, KLA helps chip manufacturers achieve higher yields and efficiency, which is increasingly important in advanced nodes.

5. Analog Devices (ADI) – Known for analog and mixed-signal chips, ADI supplies components essential to industrial, automotive, and communications applications that complement digital AI chips.

6. Cadence Design Systems (CDNS) – A chip design software provider, Cadence enables engineers to develop more efficient and powerful semiconductor architectures, making it a behind-the-scenes beneficiary of broader industry expansion.

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BofA’s thesis centers on the idea that AI and data-center buildouts — with some estimates valuing AI accelerator markets near $900 billion in the decade ahead — will underpin sustained demand for advanced semiconductors and related tools. Even so, analysts caution that heavy capital expenditures for AI facilities and cyclical demand dynamics could introduce volatility in returns.

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In summary, if semiconductor sales do indeed surpass the $1 trillion mark in 2026 as BofA forecasts, these six companies stand out for their competitive strengths and exposure to the industry’s key growth drivers.