By Harsh Chauhan
Publication Date: 2025-12-31 23:30:00
Investors looking to buy top semiconductor stocks for 2026 should take a closer look at these names before they fly higher.
The semiconductor industry witnessed another year of solid growth in 2025, with sales rising by 22.5% to just over $772 billion, according to World Semiconductor Trade Statistics (WSTS). The good news is that the industry is poised for stronger growth in the new year.
WSTS predicts a 26% jump in semiconductor sales in 2026 to $975 billion. However, Bank of America analyst Vivek Arya anticipates an even stronger jump of 30% in the industry’s revenue, to just over $1 trillion. Arya says that the artificial intelligence (AI) boom, which has been the driving force behind the surge in semiconductor sales, is going to get bigger.
Arya estimates that the AI data center market could grow to an enormous $1.2 trillion by 2030, clocking an annual growth rate of 38%. AI accelerator chips, such as graphics processing units (GPUs) and custom processors, are likely to hit a whopping $900 billion in sales. The BofA analyst has handpicked a few names that will help investors capitalize on the lucrative semiconductor market, both in 2026 and in the long run.
Let’s take a closer look at two of them and check why they are worth buying right now.
Image source: Nvidia.
A no-brainer way to play the AI chip boom
BofA says that Nvidia (NVDA 0.56%) is leading the AI revolution. That’s not surprising, as it remains the dominant player in AI chips.
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