NVIDIA Corp. (NASDAQ:NVDA) may still be the face of the artificial intelligence chip boom, but JPMorgan says the next phase of the semiconductor rally could spread much further across the industry.
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The latest World Semiconductor Trade Statistics data show semiconductor fundamentals remain strong, with June industry sales reaching $152 billion and year-over-year growth accelerating to 134%, according to JPMorgan. More importantly, the strength is no longer confined to memory chips.
JPMorgan now sees the global semiconductor industry reaching $1.68 trillion in sales in 2026, up 111% year over year, followed by $2.25 trillion in 2027, a 34% increase.
That creates a much bigger opportunity for investors than the familiar Nvidia-led AI trade.
Semiconductor Growth Is Broadening
Memory remains the biggest driver of the industry’s growth. JPMorgan said memory accounted for roughly 77% of the year-to-date increase in semiconductor sales, with DRAM and NAND revenue continuing to benefit from higher pricing and shipment volumes.
But the bank is increasingly focused on what is happening outside memory.
Ex-memory semiconductor sales reached $63.5 billion in June, up 38% year over year and 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 show gains spreading across categories including analog chips, sensors and actuators.
That matters because it suggests AI infrastructure spending is beginning to create a broader semiconductor demand cycle rather than benefiting only the most 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.
- For compute, JPMorgan picks Nvidia, Broadcom Inc. (NASDAQ:AVGO), Advanced Micro Devices, Inc. (NASDAQ:AMD) and Intel Corp. (NASDAQ:INTC). Nvidia remains the industry’s dominant AI accelerator supplier, while Broadcom and AMD offer exposure to custom AI infrastructure and competing compute platforms. Intel, meanwhile, gives investors exposure to CPUs and its increasingly important foundry and AI ambitions.
- For memory, JPMorgan favors Micron Technology, Inc. (NASDAQ:MU), as DRAM and NAND pricing continues to strengthen.
- For networking, JPMorgan again highlights Broadcom, alongside Marvell Technology, Inc. (NASDAQ: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 suggest 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.
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