AI AI concept stocks have been having a tough time lately. After experiencing a series of ups and downs, and with their eyes set on 2026, many analysts from well-known Wall Street banks say they will continue to hold onto their favorite chip stocks regardless, as the "feast" is far from over.
Bank of America Bank of America analysts told clients in a report last week that artificial intelligence "will remain a hot sector" into 2026, and chip stocks are one of the best ways to capitalize on the AI boom. They expect that with the rise of cloud computing... Giants continue to purchase hardware to build data centers Sales will increase.
Despite the impact of the overall correction in technology stocks in recent weeks, the bank Many of the large-cap stocks that are the focus of attention in 2026 have seen their share prices decline, but they remain leaders in the field, while the artificial intelligence sector has seen significant growth this year, outperforming the S&P 500.
It is worth noting that many of these stocks are also closely watched by analysts at the US investment bank Jefferies, particularly in the semiconductor sector . The analysts, whose stocks overlap, said they "will continue to invest in the artificial intelligence sector until 2026."
What signal?
In recent weeks, concerns about an artificial intelligence bubble have put pressure on the technology sector. But Jefferies and Bank of America are suggesting they believe some of this year's biggest beneficiaries will remain winners next year.
Despite Nvidia, a leading company in artificial intelligence chips The company's stock price has fallen more than 12% from its high in October last year, but as of last Friday's close, it is still up more than 30% year-to-date, as demand for its advanced chips has driven record sales.
Bank of America analysts say they expect Nvidia to maintain its strong growth momentum next year, with a continuous stream of new products. They believe Nvidia is the best large-cap stock pick for 2026, along with Broadcom , a custom AI chip manufacturer. Broadcom, Lam Research, and KLA-Tex (KLA), Analog Devices and Cadence Design Systems.
Coincidentally, Jefferies also specifically recommended Nvidia, Broadcom , Lam Research, and KLA-Tex in a report, as well as semiconductor equipment company Applied Materials. (AMAT) and testing equipment provider Camtek.
Jefferies stated that Broadcom remains its top pick in the field of artificial intelligence, even after it briefly replaced Nvidia as the market's hottest topic.
"Given its technological moat and valuation, we haven't given up on Nvidia. But Broadcom may have more upside potential based on anticipated growth in its custom chip business," the bank added.
Jefferies further explained that Broadcom's long-time customer Google's recent decision to sell its custom chips to third parties such as Meta and Anthropic could be an "opportunity" for Broadcom, given the growing number of custom chip customers, potentially including Apple. company.
In fact, it's not just Bank of America and Jefferies, Morgan Stanley... A previous research report also stated that, driven by an unprecedented surge in artificial intelligence infrastructure construction and a strong pace of inventory reduction in traditional analog chips/MCUs (microcontrollers), the "long-term bull market logic" for chip stocks remains intact, and chip stocks may still be one of the best-performing sectors in the US stock market next year.
Along with the bullish market predictions, Morgan Stanley also released its "Top Chip Stocks for 2026" list: Nvidia, Broadcom, and high-speed interconnect chip manufacturer Astera Labs ranked in the top three. It's easy to see that the lists largely overlap.
(Article source: CLS)
