AI infrastructure spending has kept semiconductor stocks among Wall Street’s best-performing groups throughout 2026, as hyperscalers continue pouring billions into data centers, advanced networking systems, and next-generation AI hardware.
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High conviction NVDA bears now have this Tradr ETFThose gains were supported by persistent demand for accelerator chips, high-bandwidth memory, and server processors capable of handling larger AI workloads. Investors also appear encouraged by signs that AI adoption is broadening beyond experimental deployments and moving deeper into enterprise software, cloud computing, and consumer applications.
That backdrop has Bank of America analyst Vivek Arya turning even more bullish on the sector after lifting his long-term AI infrastructure outlook. Arya now sees the AI data center systems market reaching nearly $1.7 trillion by 2030, up from his prior estimate of about $1.4 trillion, as spending expands beyond accelerators into CPUs, networking hardware, and memory systems.
Arya believes 2026 “will continue to be a year of accelerating AI sales and ROIs,” while adding that improving compute efficiency and architecture transitions during 2027 could create another phase of growth across the semiconductor industry. The analyst also argued that companies positioned properly within the supply chain “should continue to deliver and outperform” despite ongoing bottlenecks surrounding advanced AI components.
That view led Arya to raise his price target on Nvidia (NASDAQ:NVDA) to $320 from $300 while reiterating his Buy rating. The analyst pointed toward several upcoming catalysts, including Nvidia’s fiscal first-quarter earnings report next week, the Computex conference in June, and the expected rollout of the Vera Rubin platform during the second half of the year. Arya also believes Nvidia remains exceptionally well-positioned because of the breadth of its AI portfolio, which spans accelerators, networking products, enterprise systems, and inference workloads. The new target now implies about 42% upside from current levels.
The rest of Wall Street remains overwhelmingly bullish on NVDA as well. The stock currently boasts a Strong Buy consensus rating based on 42 analyst reviews, including 40 Buy ratings, and just 1 Hold and Sell, each. Meanwhile, the average price target stands at $277.23, suggesting the shares could still climb another ~23% over the coming year. (See NVDA stock forecast)
Arya also became more bullish on Micron (NASDAQ:MU), lifting his price target to $950 from $500, which implies about 18% upside from current levels. The analyst expects memory demand to continue outpacing supply as AI systems require larger amounts of high-bandwidth memory and advanced storage solutions. He points out that memory pricing should remain supportive because supply elasticity has structurally declined, while packaging constraints and power limitations continue restricting industry capacity. Arya also suggested memory vendors could outperform equipment suppliers over the medium term as AI infrastructure deployments continue expanding. Unsurprisingly, Arya continues to rate MU a Buy.
Overall, Wall Street remains bullish on MU, with the stock holding a Strong Buy consensus rating based on 30 analyst reviews, including 27 Buys and 3 Holds. Still, Micron’s extraordinary rally has pushed the shares far beyond analysts’ expectations, with the current average price target of $608.33 now sitting 24% below current levels. That gap suggests several analysts may still need to revisit their forecasts. (See MU stock forecast)
Meanwhile, Arya raised his price target on Advanced Micro Devices (NASDAQ:AMD) to $500 from $450, suggesting about 12% upside from current levels. The analyst sees AMD benefiting from stronger server CPU demand, expanding hyperscaler spending, and additional AI data center opportunities arriving over the coming years. Arya also believes AMD still has meaningful room for CPU and GPU market-share gains, while the company’s earnings growth outlook supports a richer valuation multiple than investors previously assigned to the stock. To this end, Arya’s Buy rating on AMD remains intact.
Other analysts also remain constructive on AMD as the company continues carving out a larger role in the AI infrastructure race. AMD currently claims a Strong Buy consensus rating based on 35 analyst reviews, including 27 Buys and 8 Holds. Yet, due to the stock’s enormous run during the past year, the average price target of $449.21 sits only slightly above current trading levels. (See AMD stock forecast)
Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.