By Nauman Khan
Publication Date: 2025-12-16 16:14:00
This article first appeared on GuruFocus.
Nvidia (NASDAQ:NVDA), Broadcom (NASDAQ:AVGO) and Lam Research (NASDAQ:LRCX) are highlighted by Bank of America as top semiconductor stocks for 2026, amid ongoing growth in AI-related spending.
Analysts see next year as a midpoint in an extended cycle of IT infrastructure upgrades driven by AI and accelerated workloads. They noted some short-term volatility could persist as investors weigh returns, but demand from enterprise, hyperscale, and government customers is expected to provide steady support.
Other favored large-cap names include KLA Corp. (KLAC), Analog Devices (NASDAQ:ADI) and Cadence Design Systems (CDNS). Small- and mid-cap picks include Credo Technology (NASDAQ:CRDO), MKS (MKSI), Macom Technology Solutions (MTSI), Teradyne (TER) and Advanced Energy Industries (NASDAQ:AEIS).
Bank of America projects another year of strong AI semiconductor growth, backed by tight supply and high data center usage. Advanced Micro…