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Buy These 5 Semiconductor Stocks Charged Up by AI Enthusiasm
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Key Takeaways
AI demand is driving semiconductor gains, lifting MU, INTC, NVDA, AMAT and TXN.
SOX has surged 75.2% YTD as AI infrastructure spending boosts chip demand and sales.
Deloitte sees 2026 semiconductor sales reaching $1T as AI investment continues.
Semiconductor stocks had a stellar 2025, and the dream run continues in 2026, thanks to the ongoing enthusiasm surrounding artificial intelligence (AI), especially generative AI.
Although a recent sell-off has unsettled markets, AI-focused semiconductor stocks remain the market’s darling as robust demand continues to drive revenues.
Given this scenario, it would be ideal to invest in semiconductor stocks, such as Micron Technology (MU - Free Report) , Intel Corporation (INTC - Free Report) , NVIDIA Corporation (NVDA - Free Report) , Applied Materials, Inc. (AMAT - Free Report) and Texas Instruments (TXN - Free Report) , which have great potential for growth this year.
AI Powering Semiconductor Sales
Semiconductor stocks have been on a rally this year, driven by robust spending on AI infrastructure. However, investor interest has expanded beyond the biggest chipmakers. As concerns over lofty valuations have grown, capital has increasingly shifted toward companies focused on networking equipment, data storage and other AI-related hardware, broadening the gains across the sector.
Nvidia has remained the industry's clear leader by market capitalization, while surging demand for AI chips has also lifted memory makers such as Micron Technology and semiconductor equipment companies like Applied Materials.
At the same time, lofty valuations have prompted periodic bouts of profit-taking, resulting in short-term pullbacks even as the sector's long-term outlook remains positive.
The Philadelphia Semiconductor Index (SOX) has rallied 75.2% year to date. According to the latest report from the Semiconductor Industry Association (SIA), global semiconductor sales reached $298.5 billion in the first quarter, marking a 25% sequential increase.
The industry could receive another tailwind as agentic AI gains momentum, with major technology companies continuing to pour billions of dollars into AI infrastructure. According to a report from Deloitte, global semiconductor sales will reach $1 trillion in 2026, underscoring the strong demand expected from the ongoing AI investment.
Although the recent decline has raised some concerns, the AI boom appears to be in its early stages. The sector's long-term growth story remains intact, and the latest pullback looks more like a temporary correction than a sign that the broader rally has come to an end.
5 Semiconductor Stocks With Growth Potential
Micron Technology
Micron Technology, Inc., through global brands, namely Micron, Crucial and Ballistix, manufactures and markets high-performance memory and storage technologies, including Dynamic Random Access Memory, NAND flash memory, NOR Flash, 3D XPoint memory and other technologies. MU’s solutions are used in leading-edge computing, consumer, networking and mobile products. Micron continues to benefit from the surging demand for high-performance computing components for AI, data centers and mobile devices.
Micron Technology has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 25.2% over the last 60 days. MU presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Intel Corporation
Intel Corporation is the world’s largest semiconductor company and primary supplier of microprocessors and chipsets. INTC is gradually reducing its dependence on the PC-centric business by moving into data-centric businesses — such as AI and autonomous driving.
Intel Corporation’s expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 1.9% over the past 60 days. INTC presently carries a Zacks Rank #2 (Buy).
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 90.6% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 4.1% over the last 60 days. NVDA currently has a Zacks Rank #1.
Applied Materials
Applied Materials, Inc. is one of the world's largest suppliers of equipment for the fabrication of semiconductors, flat panel liquid crystal displays, and solar photovoltaic cells and modules. AMAT also offers deployment and support services related to the equipment supplied.
Applied Materials’ expected earnings growth rate for the current year is 28.9%. The Zacks Consensus Estimate for current-year earnings has improved 1% over the past 60 days. AMAT has 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. Management 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 40.6%. The Zacks Consensus Estimate for current-year earnings has improved 0.4% over the past 60 days. Currently, TXN carries a Zacks Rank #2.
View the Zacks #1 Rank List
Image: Bigstock
Buy These 5 Semiconductor Stocks Charged Up by AI Enthusiasm
Key Takeaways
Semiconductor stocks had a stellar 2025, and the dream run continues in 2026, thanks to the ongoing enthusiasm surrounding artificial intelligence (AI), especially generative AI.
Although a recent sell-off has unsettled markets, AI-focused semiconductor stocks remain the market’s darling as robust demand continues to drive revenues.
Given this scenario, it would be ideal to invest in semiconductor stocks, such as Micron Technology (MU - Free Report) , Intel Corporation (INTC - Free Report) , NVIDIA Corporation (NVDA - Free Report) , Applied Materials, Inc. (AMAT - Free Report) and Texas Instruments (TXN - Free Report) , which have great potential for growth this year.
AI Powering Semiconductor Sales
Semiconductor stocks have been on a rally this year, driven by robust spending on AI infrastructure. However, investor interest has expanded beyond the biggest chipmakers. As concerns over lofty valuations have grown, capital has increasingly shifted toward companies focused on networking equipment, data storage and other AI-related hardware, broadening the gains across the sector.
Nvidia has remained the industry's clear leader by market capitalization, while surging demand for AI chips has also lifted memory makers such as Micron Technology and semiconductor equipment companies like Applied Materials.
At the same time, lofty valuations have prompted periodic bouts of profit-taking, resulting in short-term pullbacks even as the sector's long-term outlook remains positive.
The Philadelphia Semiconductor Index (SOX) has rallied 75.2% year to date. According to the latest report from the Semiconductor Industry Association (SIA), global semiconductor sales reached $298.5 billion in the first quarter, marking a 25% sequential increase.
The industry could receive another tailwind as agentic AI gains momentum, with major technology companies continuing to pour billions of dollars into AI infrastructure. According to a report from Deloitte, global semiconductor sales will reach $1 trillion in 2026, underscoring the strong demand expected from the ongoing AI investment.
Although the recent decline has raised some concerns, the AI boom appears to be in its early stages. The sector's long-term growth story remains intact, and the latest pullback looks more like a temporary correction than a sign that the broader rally has come to an end.
5 Semiconductor Stocks With Growth Potential
Micron Technology
Micron Technology, Inc., through global brands, namely Micron, Crucial and Ballistix, manufactures and markets high-performance memory and storage technologies, including Dynamic Random Access Memory, NAND flash memory, NOR Flash, 3D XPoint memory and other technologies. MU’s solutions are used in leading-edge computing, consumer, networking and mobile products. Micron continues to benefit from the surging demand for high-performance computing components for AI, data centers and mobile devices.
Micron Technology has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 25.2% over the last 60 days. MU presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Intel Corporation
Intel Corporation is the world’s largest semiconductor company and primary supplier of microprocessors and chipsets. INTC is gradually reducing its dependence on the PC-centric business by moving into data-centric businesses — such as AI and autonomous driving.
Intel Corporation’s expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 1.9% over the past 60 days. INTC presently carries a Zacks Rank #2 (Buy).
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 90.6% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 4.1% over the last 60 days. NVDA currently has a Zacks Rank #1.
Applied Materials
Applied Materials, Inc. is one of the world's largest suppliers of equipment for the fabrication of semiconductors, flat panel liquid crystal displays, and solar photovoltaic cells and modules. AMAT also offers deployment and support services related to the equipment supplied.
Applied Materials’ expected earnings growth rate for the current year is 28.9%. The Zacks Consensus Estimate for current-year earnings has improved 1% over the past 60 days. AMAT has 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. Management 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 40.6%. The Zacks Consensus Estimate for current-year earnings has improved 0.4% over the past 60 days. Currently, TXN carries a Zacks Rank #2.