BofA boosts 2026 chip market forecast 30% to $1.3T, cites Broadcom
Bank of America raised its 2026 semiconductor revenue forecast by $300 billion to $1.3 trillion, naming Broadcom and Nvidia as primary AI-driven growth engines. The bank sees the sector achieving a 20% CAGR toward $2 trillion by 2030 but warns of consumer wireless weakness that could pressure Broadcom’s communications revenue.
1. Forecast Upgrade Details
Bank of America upgraded its 2026 global semiconductor revenue forecast from $1.0 trillion to $1.3 trillion, representing a $300 billion boost over four months driven by surging AI and data center spending.
2. Key AI Growth Drivers
The firm highlighted AI compute, networking, and memory as the main engines, specifically naming Broadcom and Nvidia as the industry leaders powering the forecasted gains.
3. Long-Term Growth Outlook
BofA projects a 20% compound annual growth rate through 2030, expecting the semiconductor market to hit $2 trillion as chip design complexity and specialized tools demand accelerate.
4. Consumer Segment Risks
Despite robust AI momentum, the bank warned that continued weakness in smartphone and PC demand could dampen Broadcom’s wireless communications revenue and overall semiconductor growth into 2027.