JPMorgan Analyst: Semiconductor Sector to Sustain Growth into 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 21 2026
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Source: Benzinga
- Earnings Season Outlook: JPMorgan analyst Harlan Sur anticipates that semiconductor companies will deliver fourth-quarter results in line with or slightly above expectations, extending the positive earnings revision cycle and boosting market confidence.
- AI Infrastructure Demand: Sur highlights sustained AI-driven infrastructure spending, which is driving up inference demand and compute intensity, with the 2026 supply chain already appearing tight, ensuring visibility for key suppliers and market demand.
- Market Size Expansion: Sur expects the AI accelerator market to reach approximately $200 billion in 2025, with AI spending flowing into memory and storage content, driving semiconductor industry revenue growth of over 15% this year.
- Stock Picks Recommendation: Sur recommends several stocks including Broadcom (AVGO) and Nvidia (NVDA), believing these companies will benefit from AI and accelerated compute spending, while lean inventory levels will drive faster positive revenue and EPS revisions.
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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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