BofA Sees AI Driving the Next $1 Trillion in Semiconductor Revenue - Yahoo Finance

Bank of America (BofA) believes that artificial intelligence (AI) will be a key driver of growth in the global semiconductor industry, forecasting an additional $1 trillion in chip sales over the next... Read original →

BofA’s $1T AI-driven semiconductor forecast reflects a full-stack infrastructure overhaul. Technologically, HBM and advanced packaging bottlenecks are spiking demand for Lam and ASML tools, while analog chips gain from power management needs in AI racks. Geopolitically, U.S. export controls force foundries in Taiwan, China and Korea to build costly U.S. fabs, inflating capex by 15–20%. Strategically, competition has shifted from specs to supply security—NVIDIA locks multi-year HBM deals with Micron, while Intel bets on GAA transistors to close the gap with TSMC’s sub-3nm nodes. Over the next 12–24 months, expect a ‘long tail’ of equipment-led capex, memory-led revenue (with ~300% YoY growth in 2026), and logic chip divergence: CPUs failing to adapt to agentic AI architectures risk obsolescence.