Nvidia Forecasts Over $500 Billion Revenue in 2026 Amid AI Chip Boom
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Fool
- Strong Industry Growth: According to World Semiconductor Trade Statistics (WSTS), semiconductor sales rose by 22.5% in 2025 to $772 billion, indicating robust recovery and future growth potential in the industry.
- AI-Driven Market Outlook: Semiconductor sales are projected to increase by 26% in 2026 to $975 billion, with Bank of America analysts forecasting an even higher 30% growth to over $1 trillion, highlighting the booming AI market's role in driving sustained industry growth.
- Nvidia's Market Dominance: Nvidia holds over 90% of the data center GPU market share, with revenue expected to reach at least $500 billion in 2025 and 2026, showcasing its technological lead and strong profitability in the AI chip sector.
- Growth Potential for Equipment Manufacturers: Lam Research reported a 28% year-over-year revenue increase to $5.32 billion, driven by strong demand for chipmaking equipment, and is expected to benefit from memory market shortages, supporting continued growth in the future.
Analyst Views on LRCX
Wall Street analysts forecast LRCX stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for LRCX is 162.55 USD with a low forecast of 105.00 USD and a high forecast of 200.00 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.
21 Analyst Rating
16 Buy
5 Hold
0 Sell
Strong Buy
Current: 173.780
Low
105.00
Averages
162.55
High
200.00
Current: 173.780
Low
105.00
Averages
162.55
High
200.00
About LRCX
Lam Research Corporation is a global supplier of wafer fabrication equipment and services to the semiconductor industry. The Company designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in the fabrication of integrated circuits. Its products and services are designed to help its customers build devices that are used in a variety of electronic products, including mobile phones, personal computers, servers, wearables, automotive vehicles, and data storage devices. Its product families include ALTUS, SABRE, SPEED, Striker, VECTOR, Flex, Vantex, Kiyo, Versys Metal, Syndion, Coronus, and DV-Prime, Da Vinci, EOS, and SP Series. Its customer base includes semiconductor memory, foundries, and integrated device manufacturers that make products such as non-volatile memory, dynamic random-access memory, and logic devices. It offers services in areas, such as nanoscale applications enablement, chemistry, plasma and fluidics, and others.
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.
