Nvidia and Broadcom Are Wall Street’s Top Chip Picks for 2026 – Yahoo Finance
This article first appeared on GuruFocus.
Nvidia (NASDAQ:NVDA), Broadcom (NASDAQ:AVGO) and Lam Research (NASDAQ:LRCX) are highlighted by Bank of America as top semiconductor stocks for 2026, amid ongoing growth in AI-related spending.
Analysts see next year as a midpoint in an extended cycle of IT infrastructure upgrades driven by AI and accelerated workloads. They noted some short-term volatility could persist as investors weigh returns, but demand from enterprise, hyperscale, and government customers is expected to provide steady support.
Other favored large-cap names include KLA Corp. (KLAC), Analog Devices (NASDAQ:ADI) and Cadence Design Systems (CDNS). Small- and mid-cap picks include Credo Technology (NASDAQ:CRDO), MKS (MKSI), Macom Technology Solutions (MTSI), Teradyne (TER) and Advanced Energy Industries (NASDAQ:AEIS).
Bank of America projects another year of strong AI semiconductor growth, backed by tight supply and high data center usage. Advanced Micro Devices (AMD) also stands out in the AI chip space.
The firm cautioned that analog chips may face pressure from softer industrial activity and rising competition. Emerging trends in 2026 include co-packaged optics, robotics and quantum, with Lumentum (NASDAQ:LITE) and Coherent (COHR) positioned as potential leaders.
