Bank of America analysts say AI will help add an additional $1 trillion to semiconductor sales over the next five years-a figure that took the industry 50 years to reach initially. The forecast signals sharply higher demand for chips powering everything from data centers to AI-enabled laptops, creating a wide lane of opportunity for sales teams across the technology supply chain.
"The chip industry took ~50 years to generate its first $1Tn in sales," analysts led by Vivek Arya said. "We expect AI to help add another $1Tn in just the next five years."
Where the growth is coming from
The largest single driver is AI data centre infrastructure. BofA expects that market to balloon from roughly $273 billion in 2025 to $1.7 trillion by 2030. A new category of AI-focused server processors-spanning both x86 and ARM architectures-could eventually become a $170 billion market in its own right.
Memory and manufacturing equipment lead the charge
Memory remains BofA's most bullish segment, with analysts forecasting nearly 300% growth in 2026. The firm also raised its wafer fabrication equipment spending outlook sharply, now expecting annual investment to reach $250 billion by 2028 and as high as $292 billion by 2030, reflecting the rising complexity and capital intensity of advanced chip production.
The bank lifted its overall semiconductor revenue forecast to $2.7 trillion by 2030, up from an earlier estimate of $2.3 trillion, implying annual growth of roughly 28% from 2025 levels.
Price targets climb across the chip sector
Micron (NASDAQ:MU) received the largest target increase, jumping to $1,500 from $950, as BofA cited strong high-bandwidth memory demand and tight supply. Applied Materials, Lam Research, KLA Corporation, Marvell, Intel, and Credo Technology also saw their targets raised on stronger long-term assumptions.
Axcelis Technologies was the lone exception. While BofA lifted its target to $156 from $130, it kept an Underperform rating, noting that the stock's valuation already bakes in much of the expected benefit from its pending merger with Veeco.
Why this matters for sales professionals
The semiconductor industry's $1 trillion addition over five years isn't just about chips. It will fuel spending on cloud platforms, enterprise hardware, software tools, and professional services-all areas where sales teams compete for deals. Buyers across industries are gearing up for large-scale AI deployments, and reps who understand the underlying infrastructure trends can position themselves as strategic advisors rather than order-takers.
Sales professionals looking to sharpen their AI knowledge for this changing environment can explore structured resources like the AI Learning Path for Sales Representatives, which covers lead qualification, CRM automation, and revenue tools that align with the very AI wave driving this chip boom.
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