Semiconductor Sector Approaches $1 Trillion Milestone Amid AI Boom
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy NVDA?
Source: Benzinga
- Google's CapEx Boost: Google projects capital expenditures between $175 billion and $185 billion, significantly exceeding expectations, which serves as a robust tailwind for suppliers like Broadcom and Nvidia, further propelling growth in the semiconductor sector.
- Revenue Milestone: The semiconductor industry is set to reach $1 trillion in annual revenue by 2026, with global sales hitting $791.7 billion in 2025 and projected to grow by 26%, showcasing the strong demand for chips driven by artificial intelligence.
- Surging Demand Impact: The skyrocketing demand for new data center systems has resulted in substantial profits for companies like Nvidia and Micron, with the industry's growth rate surpassing earlier forecasts, indicating sustained strong demand for semiconductors.
- Long-Term Growth Outlook: Despite anticipated market fluctuations, SIA CEO Neuffer stated that the overall market continues to expand, maintaining an optimistic long-term growth outlook for the semiconductor industry, as the widespread application of AI technology continues to drive sector development.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NVDA is 264.97 USD with a low forecast of 200.00 USD and a high forecast of 352.00 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.
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 171.880
Low
200.00
Averages
264.97
High
352.00
Current: 171.880
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is a full-stack computing infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. The Company’s segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing platforms and artificial intelligence (AI) solutions and software; networking; automotive platforms and autonomous and electric vehicle solutions; Jetson for robotics and other embedded platforms, and DGX Cloud computing services. The Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems, and Omniverse Enterprise software for building and operating industrial AI and digital twin applications.
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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- Stock Performance: As of February 4, 2026, Nvidia's stock rose by 4.63% in after-market trading, indicating investor confidence in its future growth potential, particularly in AI applications.
- Video Content: The video covers updates on Nvidia's latest product launches and market strategies, aiming to attract more investors to AI-related stocks and further enhance market activity.
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- Significant AI Investment Returns: In its fourth-quarter earnings report, Alphabet highlighted substantial returns from its AI investments, particularly through its partnership with Nvidia, which is expected to further drive the development of cutting-edge AI models.
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