BofA Analyst Sees 30% Growth in U.S. Semiconductor Industry
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 08 2026
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Source: Benzinga
- Industry Growth Outlook: BofA analyst Vivek Arya expresses increased confidence in the U.S. semiconductor sector after CES, forecasting a 30% year-over-year growth in 2024, marking the industry's first-ever $1 trillion in sales, indicating robust market demand and investor confidence.
- Demand Drivers: Arya identifies three key factors driving growth: sustained demand from AI, cyclical industrial inventory replenishment, and strong pricing power among chipmakers, suggesting that demand for semiconductors will remain strong.
- NVIDIA's Strong Position: In discussions with NVIDIA's management, Arya highlighted the company's unmatched leadership in AI and robust financial health, projecting $26 billion in R&D spending for CY26, which underscores its dominant position in the industry.
- Credo Investment Opportunity: Despite a 34% drop from its 52-week high, Arya sees Credo's leadership in active electrical cables and strong earnings revisions as a compelling investment opportunity, with fiscal 2027 EPS estimates rising by 160%.
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Analyst Views on ADI
Wall Street analysts forecast ADI stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for ADI is 290.38 USD with a low forecast of 240.00 USD and a high forecast of 350.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
23 Analyst Rating
19 Buy
4 Hold
0 Sell
Strong Buy
Current: 317.625
Low
240.00
Averages
290.38
High
350.00
Current: 317.625
Low
240.00
Averages
290.38
High
350.00
About ADI
Analog Devices, Inc. is a global semiconductor company. The Company designs, manufactures, tests, and markets a portfolio of solutions, including integrated circuits (ICs), software and subsystems that leverage high-performance analog, mixed-signal and digital signal processing technologies. Its comprehensive product portfolio, domain specialization and manufacturing capabilities extend across high-performance precision and high-speed mixed-signal, power management and processing technologies, including data converters, amplifiers, power management, radio frequency (RF) ICs, edge processors and other sensors. The Company's IC product portfolio includes both general-purpose products used by a range of customers and applications, as well as application-specific products designed for specific target markets. Its analog ICs monitor, condition, amplify or transform continuous analog signals associated with physical properties, such as temperature, pressure, weight, light, sound or motion.
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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