Bank of America Optimistic About Semiconductor Market Outlook
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 hours ago
0mins
Source: seekingalpha
- Strong AI Infrastructure: Bank of America analysts predict sustained demand for AI infrastructure, driven by 3-5x year-over-year sales growth at frontier labs, with the AI total addressable market expected to reach approximately $1.7 trillion by 2030, indicating long-term growth potential.
- Surge in Semiconductor Stocks: Despite a sharp rise in semiconductor stocks in 2026, BofA notes that the forward P/E ratio is around 25.6, suggesting limited speculative inflation and supporting the durability of the rally amid ongoing AI infrastructure growth.
- Segmented Market Opportunities: BofA is optimistic about segments like compute, memory, and semiconductor equipment, particularly highlighting Nvidia, AMD, and Broadcom's leadership in compute, with multiple CPU announcements expected at next month's Computex event.
- Diverse Industry Demand: Analysts mention the potential of ON Semiconductor and Microchip in the analog market, especially with growing demand in AI and defense sectors, further enhancing the diverse demand outlook for the semiconductor industry.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 215.330
Low
200.00
Averages
264.97
High
352.00
Current: 215.330
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is an artificial intelligence (AI) infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. Its segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing and networking platforms and AI solutions and software, and automotive platforms and autonomous and electric vehicle solutions, including software. The Graphics segment includes GeForce GPUs for gaming and personal computers (PCs), and Quadro/NVIDIA RTX GPUs for enterprise workstation graphics. Its technology stack includes the foundational NVIDIA CUDA development platform that runs on all NVIDIA GPUs, as well as hundreds of domain-specific software libraries, frameworks, algorithms, software development kits (SDKs), and application programming interfaces (APIs). Its platforms address four markets, which include Data Center, Gaming, Professional Visualization, and Automotive.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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