Nvidia's Chip Boom Is Spreading: JPMorgan Says These 6 Stocks Could Ride It
Key takeaways
- JPMorgan's semiconductor industry forecast and the AI infrastructure boom create opportunities for investors beyond just NVIDIA.
- JPMorgan forecasts the global semiconductor industry to reach $1.68 trillion in sales in 2026, up 111% year over year.
- The bank's model assumes largely seasonal growth across most categories, but also suggests upside risk to its industry forecasts due to the accelerating growth of semiconductor sales.
- June industry sales reached $152 billion and year-over-year growth accelerated to 134%, according to JPMorgan.
What happened
JPMorgan forecasts the global semiconductor industry to reach $1.68 trillion in sales in 2026, up 111% year over year, and $2.25 trillion in 2027, a 34% increase.
Why it matters
The semiconductor industry's growth is driven by AI infrastructure spending, creating demand across compute, memory, and networking, and other categories are beginning to recover.
Short-term and longer-term
Short-term. The AI infrastructure boom is creating a broader semiconductor demand cycle, benefiting not just AI accelerators and memory suppliers, but also other categories such as microcomponents, analog chips, sensors, and…
Longer-term. Over the next few months, the question for Nvidia's Chip Boom (INTC) is whether this changed the longer case, or it is one event.