Nvidia may still be the poster child for the AI chip boom, but JPMorgan is telling investors to look further afield. The bank says the next leg of the semiconductor rally is spreading across the industry, and it has six stocks that could benefit.
The latest data from the World Semiconductor Trade Statistics shows chip fundamentals remain strong. June industry sales hit $152 billion, with year-over-year growth accelerating to 134%, according to JPMorgan. The key shift? Strength is no longer just about memory chips.
JPMorgan now projects the global semiconductor industry will reach $1.68 trillion in sales in 2026, up 111% year over year, and then $2.25 trillion in 2027, a 34% jump. That's a much bigger opportunity than the familiar Nvidia-led AI trade.
Semiconductor Growth Is Broadening
Memory is still the biggest growth driver. JPMorgan notes that memory accounted for roughly 77% of the year-to-date increase in semiconductor sales, with DRAM and NAND revenue benefiting from higher prices and shipment volumes.
But the bank is increasingly focused on what's happening outside memory. Ex-memory semiconductor sales hit $63.5 billion in June, up 38% year over year, marking a third consecutive month of accelerating growth. Microcomponents, including microcontrollers, microprocessors, and digital signal processors, were among the biggest sources of improvement. The monthly data also shows gains spreading across analog chips, sensors, and actuators.
That's significant because it suggests AI infrastructure spending is starting to create a broader semiconductor demand cycle, rather than just benefiting the obvious AI accelerators and memory suppliers.
JPMorgan's 6 Chip Stocks to Watch
JPMorgan sees the strongest positioning across three parts of the semiconductor market.
- Compute: The bank picks Nvidia (NVDA), Broadcom (AVGO), Advanced Micro Devices (AMD), and Intel (INTC). Nvidia remains the dominant AI accelerator supplier, while Broadcom and AMD offer exposure to custom AI infrastructure and competing compute platforms. Intel gives investors exposure to CPUs and its increasingly important foundry and AI ambitions.
- Memory: JPMorgan favors Micron (MU), as DRAM and NAND pricing continues to strengthen.
- Networking: The bank again highlights Broadcom, alongside Marvell Technology (MRVL), as AI data centers require increasingly sophisticated connectivity to move data between processors and systems.
That gives investors six ways to play the same underlying theme, but with very different exposures.
The AI Trade Is Getting Bigger
The most important takeaway may be that investors don't necessarily need to pick the next Nvidia. JPMorgan's latest data suggests the AI infrastructure boom is creating demand across compute, memory, and networking, while other semiconductor categories are beginning to recover as well.
JPMorgan also sees upside risk to its $1.68 trillion and $2.25 trillion industry forecasts because its model assumes largely seasonal growth across most categories.
For investors, that creates a broader semiconductor opportunity: Nvidia may have started the AI chip boom, but JPMorgan sees plenty of room for the rest of the industry to catch up.
