Bank of America reiterated its confidence in the semiconductor sector.
The firm states high artificial intelligence spending has staying power to drive stock upside in 2026.
BofA named AMD, Nvidia, and Broadcom as its favored compute picks.
This selection reflects ongoing AI infrastructure demand from tech companies, enterprises, and sovereign customers.
BofA analysts project the total addressable market for AI will reach $1.7 trillion by 2030.
The bank previously raised its AMD price target to $500.
This outlook drove AMD stock gains on Tuesday.
Analysts view 2026 as a critical year for AI monetization and return on investment.