The artificial intelligence industry is set to explode, with Bank of America predicting a 30% year-over-year surge in global semiconductor sales, surpassing $1 trillion in 2026. Top picks include Nvidia, Broadcom, Lam Research, KLA, Analog Devices, and Cadence Design Systems.

Nvidia’s CEO highlights the role of AI in a new industrial revolution. Bank of America estimates the AI data center market will exceed $1.2 trillion by 2030, with AI accelerators presenting a $900 billion opportunity. Despite the high costs, Big Tech continues to invest defensively and offensively in AI infrastructure.

Nvidia and Broadcom lead the AI charge, with Nvidia’s market cap soaring and Broadcom transforming into an AI infrastructure giant. Goldman Sachs views Broadcom as a critical player in the AI boom, projecting further upside. Bank of America remains optimistic, emphasizing dominant market shares and growth potential for top semiconductor companies.

Riding the AI wave, Nvidia and Broadcom continue to dominate the market with high margins and innovative products. Bank of America’s Vivek Arya sees potential in these companies, projecting significant growth and valuation. Despite concerns, these companies remain at the forefront of the AI revolution, poised for further success in the coming years.

Read more at Yahoo Finance: These 6 stocks will lead the $1 trillion chip surge in 2026, BofA says