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RegExp("[?&]notifications=1(&|#|$)");"desktop"===y&&i&&b.test(window.location.search)&&(i.checked=!0)};ge("ybar-mod-notification",(function(e){var t={isUH3:"crunch"===e.getConfig().ytheme,notifContainer:document.getElementById("notification-container"),notifBadge:document.getElementById("notif-badge"),notifMenu:document.getElementById("ybarNotificationMenu"),notifMenuOpener:document.querySelector("#ybarNotificationMenu + label"),notifDropdown:document.getElementById("notifDropdownContainer"),tooltipContainer:document.querySelector(".".concat($n)),notifLabel:document.querySelector(".".concat(Xn))};t.notifDropdown&&so(e,t)}))}()}};]]>Francisco VelasquezUpdated Sun, December 28, 2025 at 8:55 PM GMT+1 4 min readThe artificial intelligence boom isn't cooling off — it's getting bigger, Bank of America analyst Vivek Arya contends.While AI skeptics have pointed to eye-popping valuations as a reason to run, Arya said the industry is only at the "midpoint" of a decade-long transformation, and it's being led by Nvidia (NVDA) and Broadcom (AVGO).In a report titled "2026 Year Ahead: choppy, still cheerful," Arya forecast a 30% year-over-year surge in global semiconductor sales that will finally push the sector past a historic $1 trillion annual sales milestone in 2026.Arya noted a strong belief in companies with "moats that are quantified by their margin structure." In addition to Nvidia and Broadcom, he highlighted four other large-cap semiconductor companies — Lam Research (LRCX), KLA (KLAC), Analog Devices (ADI), and Cadence Design Systems (CDNS) — as his top picks for 2026."I often say that investing in semis is very simple," Arya told reporters on a Dec. 19 call. "You don't need any sell-side analyst to do that. Just take all your companies, sort them by gross margins, and buy the top five, and you're not going to be that wrong."Nvidia CEO Jensen Huang speaks on how AI infrastructure and AI factories that generate intelligence at scale are powering a new industrial revolution, at the Washington Convention Center on Oct. 28, 2025, in Washington, D.C. (AP Photo/Manuel Balce Ceneta) · ASSOCIATED PRESSBofA estimates that the total addressable market for AI data center systems will reach over $1.2 trillion by 2030, representing a compound annual growth rate of 38%. AI accelerators alone represent a $900 billion opportunity.Despite these staggering figures, the market remains cautious because AI data centers are expensive. A typical 1 gigawatt facility requires upwards of $60 billion in capital expenditures, with roughly half of that going directly to hardware, per Bank of America.That raises the question: Will the return on investment ever materialize?Read more: How to protect your portfolio from an AI bubbleArya remained optimistic, arguing that current spending is both "offensive and defensive." In other words, Big Tech has no choice but to invest to protect its existing empires.Nvidia — the world's largest company by market cap — is currently operating in a "different galaxy," Arya said.With Nvidia shares up over 40% year to date, Arya warned against comparing the AI leader to traditional chipmakers. While the average chip is priced at $2.40, an Nvidia graphics processing unit (GPU) sells for roughly $30,000.And although some fear Nvidia's market cap has hit a ceiling, BofA pointed to free cash flow — projected to hit half a trillion dollars over the next three years — and a valuation that is "still incredibly cheap" when adjusted for growth.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,929.94 -2.11 (-0.03%)Dow 3048,710.97 -20.23 (-0.04%)Nasdaq23,593.10 -20.21 (-0.09%)Russell 20002,534.35 -13.73 (-0.54%)VIX13.60 +0.13 (+0.97%)Gold4,552.70 +49.90 (+1.11%)Trending tickersBTC-USD Bitcoin USD 87,485.58 -26.81 (-0.03%)ETH-USD Ethereum USD 2,930.94 +2.81 (+0.10%)XRP-USD XRP USD 1.86 +0.00 (+0.08%)LRCX Lam Research Corporation 178.07 +0.74 (+0.42%)KLAC KLA Corporation 1,279.60 +2.61 (+0.20%)PortfolioSign in to access your portfolioSign inTop gainersELPC Companhia Paranaense de Energia 9.65 +0.79 (+8.92%)PSLV Sprott Physical Silver Trust 26.04 +2.08 (+8.68%)ZETA Zeta Global Holdings Corp. 20.70 +1.59 (+8.32%)CPNG Coupang, Inc. 24.27 +1.47 (+6.45%)XPEV XPeng Inc. 20.78 +1.21 (+6.18%)Top losersRGC Regencell Bioscience Holdings Limited 21.16 -3.44 (-13.98%)FLY Firefly Aerospace Inc. 23.34 -3.70 (-13.68%)TMC TMC the metals company Inc. 6.82 -0.80 (-10.50%)AAOI Applied Optoelectronics, Inc. 37.17 -3.83 (-9.34%)RGTI Rigetti Computing, Inc. 22.38 -2.13 (-8.69%)Most activeNVDA NVIDIA Corporation 190.53 +1.92 (+1.02%)TSLA Tesla, Inc. 475.19 -10.21 (-2.10%)PLUG Plug Power Inc. 2.0700 -0.0300 (-1.43%)ONDS Ondas Holdings Inc. 8.48 -0.65 (-7.12%)NIO NIO Inc. 5.10 +0.19 (+3.87%)Top economic eventsEarnings eventsMy earnings eventsEarnings events