BofA sees AI driving the next $1 trillion in semiconductor revenue - MSN

Bank of America believes that artificial intelligence will be a key driver of semiconductor industry growth, forecasting an additional $1 trillion in chip sales over the next five years. Analysts note... Read original →

The AI-driven semiconductor boom isn't linear growth—it's a cascading tech realignment. Data centers shifting from CPU-centric to heterogeneous architectures are straining HBM, CoWoS packaging, and analog ICs, especially power management chips. This forces TSMC, Samsung, and Intel to accelerate sub-2nm nodes, yet U.S. CHIPS Act 'guardrails' restrict expansion flexibility in Taiwan, China and mainland China, inflating compliance costs and pushing supply chains toward 'friend-shoring' in the U.S., Japan, and Europe—lengthening equipment lead times. While NVIDIA leads AI chips, AMD, Intel, and ASIC specialists are racing to define next-gen CPUs for agentic AI. Over the next 18 months, the industry will split between capacity arms races and fragmented technical standards; winners will be those best balancing geopolitical risk with manufacturing resilience, not scale alone.