① JPMorgan Chase It is predicted that larger chip and internet stocks will outperform in 2026, despite market concerns about artificial intelligence. Concerns about a bubble; ② Expected use in data centers in 2026 Capital expenditures will increase by another 50% in business expenditures; ③ Broadcom Micron Technology Companies such as Marvell and Analog Devices are listed as key players in the sector for next year.
Despite recent investor hesitation regarding the AI hype, JPMorgan believes that larger chip and internet stocks are still poised to outperform in 2026.
According to a report by JPMorgan Chase 's North American analyst team, despite market concerns about an artificial intelligence bubble, some leading semiconductor companies ... Internet companies may still outperform the market again in 2026.
A team of analysts led by Harlan Ma estimates that business spending on data center capital expenditures could grow by another 50% in 2026, compared to approximately 65% in 2025. This growth will support equipment manufacturers across the entire semiconductor industry value chain.
It is worth mentioning that Broadcom , a well-known chip manufacturer, and memory chip... Manufacturers such as Micron Technology , semiconductor and solutions company Marvell, and Analog Devices, which produces chips for industrial and automotive electronics, are among the companies listed as the top contenders in this sector for next year.
Key investment targets
According to analysts, Broadcom and Marvell may benefit from the increasing prevalence of various application-specific integrated circuits (ASICs) that compete with graphics processing units (GPUs) in artificial intelligence tasks.
Harlan Ma estimates that Broadcom is on track to generate $55 billion to $60 billion in AI revenue in fiscal year 2026 and surpass $100 billion in 2027. In comparison, this figure is estimated at around $20 billion in fiscal year 2025.
As previously reported, JPMorgan Chase has set a target price of $475 for Broadcom stock, which implies a 28% upside from the current price.
Analysts also believe that Marvell will have a "strong momentum" in the new year due to its continued growth in its artificial intelligence business and the recovery of its cyclical businesses. In early December, JPMorgan Chase raised its target price for the company from $120 to $130, implying a 55% upside potential.
As for Analog Devices, JPMorgan Chase points out that the company ranks second in the high-performance analog electronics market. Thanks to contracts it has secured in the design phase, the company could earn $500 to $600 million from artificial intelligence technology as early as next year, and its market value is expected to grow by 15%.
Micron Technology's stock has been a market leader this year, with gains exceeding 170%. A report from JPMorgan Chase indicates that the company is likely to continue its strong performance next year, stating, "We believe the stock still has significant upside potential through 2026, driven by continued price increases, expanding profit margins, and potential upward revisions to its financial forecasts." JPMorgan Chase maintains its buy rating on Micron stock.
Artificial Intelligence Bubble
Analysts say that despite the increasing scale of investment, concerns about an artificial intelligence bubble are likely to persist.
However, in the long run, the application of artificial intelligence is expected to expand further in the consumer and enterprise sectors, while the increase in computing workload will continue to support strong demand for accelerated computing and related infrastructure.
JPMorgan Chase predicts that semiconductor industry revenue will grow by 10% to 15% in 2026, with companies related to building artificial intelligence infrastructure benefiting the most.
(Article source: CLS)
