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4 Solid Stocks to Buy as AI Powers Steady Semiconductor Sales
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Key Takeaways
Global semiconductor sales climbed 25% in Q1 2026 as AI demand fueled chip growth.
NVDA, ADI, TXN and NXPI are benefiting from strong AI and semiconductor demand trends.
Deloitte projects the semiconductor market to reach $975 billion in annual sales this year.
The semiconductor industry has been having a dream run since 2024, and the momentum has continued into this year. Robust demand for artificial intelligence (AI) has seen semiconductor giants invest billions of dollars in infrastructure.
Semiconductor stocks have primarily been responsible for the broader market rally, which has seen the S&P 500 and Nasdaq hit new all-time closing highs lately.
Given this scenario, it would be ideal to invest in semiconductor stocks, such as NVIDIA Corporation (NVDA - Free Report) , Analog Devices (ADI - Free Report) , Texas Instruments (TXN - Free Report) and NXP Semiconductors (NXPI - Free Report) , which have great potential for growth this year.
Semiconductor Sales Rise
Global semiconductor sales totaled $298.5 billion in the first quarter of 2026, up 25% from the previous quarter, the Semiconductor Industry Association (“SIA”) announced earlier this week.
Year over year, global semiconductor sales totaled $99.5 billion in March, jumping 79.2% from March 2025’s total of $55.5 billion. Month over month, sales jumped 11.5% from February.
“Global chip sales remain on track to reach $1 trillion in 2026, with Q1 sales significantly exceeding sales in Q4 2025. Strong sales across the Asia Pacific region, the Americas, and China drove global semiconductor market growth, highlighting broad and robust demand for semiconductors and the countless tech products they enable,” John Neuffer, SIA president and CEO, said.
The surge in sales in the first quarter of the year follows a stellar 2025. Revenues in the fourth quarter of 2025 hit $236.6 billion. Robust demand for logic and memory chips has continued to drive growth across the sector.
Semiconductors have become essential to almost every modern and emerging technology, including IoT, 6G, and artificial intelligence. Rising demand from the automotive industry has also contributed to higher chip sales. At the same time, the rapidly expanding AI market — still considered to be in its early stages — is pushing major technology companies to pour billions into development and infrastructure.
As large tech firms continue investing heavily in AI infrastructure, investor confidence in chipmakers has strengthened. According to LSEG data cited by Reuters, the semiconductor sub-industry is expected to post first-quarter earnings growth of 109.2%, far ahead of the broader S&P 500 information technology sector’s projected 48.2% growth.
The ongoing AI-driven infrastructure boom is also expected to support long-term industry expansion. A Deloitte reportprojects that the global semiconductor market could generate $975 billion in annual sales this year.
4 Semiconductor Stocks With Upside
NVIDIA Corporation
NVIDIA Corporation is the worldwide leader in visual computing technologies and the inventor of the graphics processing unit, or GPU. Over the years, NVDA’s focus has evolved from PC graphics to AI-based solutions that now support high-performance computing, gaming and virtual reality platforms.
NVIDIA has an expected earnings growth rate of 69.2% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.4% over the last 60 days. NVDA currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Analog Devices
Analog Devices is an original equipment manufacturer of semiconductor devices, specifically analog, mixed-signal and digital signal processing (“DSP”) integrated circuits. ADI’s product line comprises amplifiers and comparators; analog to digital converters; digital to analog converters; video encoders and decoders; embedded processing products and DSPs; MEMS and temperature sensors; RF/IF components and converters; power and thermal management ICs, audio/video converters, amplifiers, CODECs, filters and processors. Analog Devices also offers analog, digital and RF switches and multiplexers; analog microcontrollers; clock and timing products.
Analog Devices’ expected earnings growth rate for the current year is 45.7%. The Zacks Consensus Estimate for current-year earnings has improved 0.2% over the past 60 days. ADI currently carries a Zacks Rank #2.
Texas Instruments
Texas Instruments is an original equipment manufacturer of analog, mixed-signal and digital signal-processing integrated circuits. TXN has manufacturing and design facilities, including wafer fabrication and assembly/test operations in North America, Asia and Europe. Texas Instruments’ strategy has been to build assets that would be fully utilized through their lifetimes and outsource any excess demand in peak situations to outside foundries.
Texas Instruments’ expected earnings growth rate for the current year is 39.5%. The Zacks Consensus Estimate for current-year earnings has improved 19.1% over the past 60 days. Currently, TXN carries a Zacks Rank #1.
NXP Semiconductors
NXP Semiconductors provides high-performance, mixed-signal and standard product solutions that leverage its RF, analog, power management, interface, security, as well as digital processing expertise. NXPI seems well-positioned to capitalize on the level 2-5 automotive market. Additionally, NXP Semiconductors is the leader in general-purpose microcontrollers and application processors in industrial and IoT markets.
NXP Semiconductors’ expected earnings growth rate for the current year is 24.6%. The Zacks Consensus Estimate for current-year earnings has improved 5.3% over the past 60 days. NXPI carries a Zacks Rank #2 at present.
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4 Solid Stocks to Buy as AI Powers Steady Semiconductor Sales
Key Takeaways
The semiconductor industry has been having a dream run since 2024, and the momentum has continued into this year. Robust demand for artificial intelligence (AI) has seen semiconductor giants invest billions of dollars in infrastructure.
Semiconductor stocks have primarily been responsible for the broader market rally, which has seen the S&P 500 and Nasdaq hit new all-time closing highs lately.
Given this scenario, it would be ideal to invest in semiconductor stocks, such as NVIDIA Corporation (NVDA - Free Report) , Analog Devices (ADI - Free Report) , Texas Instruments (TXN - Free Report) and NXP Semiconductors (NXPI - Free Report) , which have great potential for growth this year.
Semiconductor Sales Rise
Global semiconductor sales totaled $298.5 billion in the first quarter of 2026, up 25% from the previous quarter, the Semiconductor Industry Association (“SIA”) announced earlier this week.
Year over year, global semiconductor sales totaled $99.5 billion in March, jumping 79.2% from March 2025’s total of $55.5 billion. Month over month, sales jumped 11.5% from February.
“Global chip sales remain on track to reach $1 trillion in 2026, with Q1 sales significantly exceeding sales in Q4 2025. Strong sales across the Asia Pacific region, the Americas, and China drove global semiconductor market growth, highlighting broad and robust demand for semiconductors and the countless tech products they enable,” John Neuffer, SIA president and CEO, said.
The surge in sales in the first quarter of the year follows a stellar 2025. Revenues in the fourth quarter of 2025 hit $236.6 billion. Robust demand for logic and memory chips has continued to drive growth across the sector.
Semiconductors have become essential to almost every modern and emerging technology, including IoT, 6G, and artificial intelligence. Rising demand from the automotive industry has also contributed to higher chip sales. At the same time, the rapidly expanding AI market — still considered to be in its early stages — is pushing major technology companies to pour billions into development and infrastructure.
As large tech firms continue investing heavily in AI infrastructure, investor confidence in chipmakers has strengthened. According to LSEG data cited by Reuters, the semiconductor sub-industry is expected to post first-quarter earnings growth of 109.2%, far ahead of the broader S&P 500 information technology sector’s projected 48.2% growth.
The ongoing AI-driven infrastructure boom is also expected to support long-term industry expansion. A Deloitte reportprojects that the global semiconductor market could generate $975 billion in annual sales this year.
4 Semiconductor Stocks With Upside
NVIDIA Corporation
NVIDIA Corporation is the worldwide leader in visual computing technologies and the inventor of the graphics processing unit, or GPU. Over the years, NVDA’s focus has evolved from PC graphics to AI-based solutions that now support high-performance computing, gaming and virtual reality platforms.
NVIDIA has an expected earnings growth rate of 69.2% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.4% over the last 60 days. NVDA currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Analog Devices
Analog Devices is an original equipment manufacturer of semiconductor devices, specifically analog, mixed-signal and digital signal processing (“DSP”) integrated circuits. ADI’s product line comprises amplifiers and comparators; analog to digital converters; digital to analog converters; video encoders and decoders; embedded processing products and DSPs; MEMS and temperature sensors; RF/IF components and converters; power and thermal management ICs, audio/video converters, amplifiers, CODECs, filters and processors. Analog Devices also offers analog, digital and RF switches and multiplexers; analog microcontrollers; clock and timing products.
Analog Devices’ expected earnings growth rate for the current year is 45.7%. The Zacks Consensus Estimate for current-year earnings has improved 0.2% over the past 60 days. ADI currently carries a Zacks Rank #2.
Texas Instruments
Texas Instruments is an original equipment manufacturer of analog, mixed-signal and digital signal-processing integrated circuits. TXN has manufacturing and design facilities, including wafer fabrication and assembly/test operations in North America, Asia and Europe. Texas Instruments’ strategy has been to build assets that would be fully utilized through their lifetimes and outsource any excess demand in peak situations to outside foundries.
Texas Instruments’ expected earnings growth rate for the current year is 39.5%. The Zacks Consensus Estimate for current-year earnings has improved 19.1% over the past 60 days. Currently, TXN carries a Zacks Rank #1.
NXP Semiconductors
NXP Semiconductors provides high-performance, mixed-signal and standard product solutions that leverage its RF, analog, power management, interface, security, as well as digital processing expertise. NXPI seems well-positioned to capitalize on the level 2-5 automotive market. Additionally, NXP Semiconductors is the leader in general-purpose microcontrollers and application processors in industrial and IoT markets.
NXP Semiconductors’ expected earnings growth rate for the current year is 24.6%. The Zacks Consensus Estimate for current-year earnings has improved 5.3% over the past 60 days. NXPI carries a Zacks Rank #2 at present.