Bank of America Raises Forecasts for the AI Data Center Market
Bank of America analysts have identified their top semiconductor stock picks for the fourth quarter—including Nvidia, Intel, Marvell, Micron, and Lam Research—citing the historical seasonal strength of chip stocks during the fourth and first quarters.
The bank anticipates that rising demand for artificial intelligence and data centers will bolster the semiconductor sector, raising its forecast for the AI data center market size to $2.2 trillion by 2030, representing an annual growth rate of nearly 40%.
Bank of America also expects capital expenditure by major cloud service providers to continue rising—driven by the expanding use of AI agents and chip supply constraints—with spending reaching approximately $1 trillion this year and $1.4 trillion in 2027, potentially ranging between $2 trillion and $3 trillion by 2030.
