BofA Raises Price Targets on Intel, Arm and Other Chip Stocks as AI Visibility Extends to 2028
Taylor Wilson
Bank of America lifted price targets on more than a dozen semiconductor stocks, arguing that AI capital-spending visibility now stretches to 2028 — a signal that the chip upcycle is not a short trade but a multi-year equipment expansion.
What exactly did BofA raise?
Analyst Vivek Arya's team hiked the 2028 wafer-fab equipment (WFE) spending forecast by 23%, from $203 billion to $250 billion (YoY +32%).
The 2027 estimate also rose 4% to $190 billion (YoY +31%); 2029 and 2030 were set at $268 billion and $292 billion, respectively.
This means → BofA sees equipment spending sustaining double-digit growth for four consecutive years, not peaking and fading.
Why push visibility all the way to 2028?
Three factors stacked up: cleanroom capacity will be more plentiful by 2028, memory makers' long-term agreements (LTAs) lock in future demand, and technology transitions are raising equipment spend per wafer.
In plain terms = the factory space is coming, the orders are signed, and every chip made will cost more in equipment — all three lines point to "keep spending big."
Intel and Samsung progress in advanced foundry, plus the potential of Intel's Terafab, were also cited as positives.
How big could the total chip market get?
BofA raised its semiconductor total addressable market (TAM) forecast from $2.3 trillion to $2.7 trillion, implying a 28% CAGR from 2025 to 2030.
The main growth engines are memory and data centers; auto and industrial recovery contribute as well.
This means → BofA's bet extends beyond AI chips themselves to the entire semiconductor supply chain expanding on AI-driven demand.
Which stocks were raised, and by how much?
The biggest jump: Micron (MU) — target lifted from $950 to $1,500, roughly a 58% increase.
Equipment names moved up across the board: Applied Materials (AMAT) $540→$720, Lam Research (LRCX) $330→$480, KLA (KLAC) $210→$317, Teradyne (TER) $365→$525.
Design and connectivity names followed: Arm $335→$460, Marvell (MRVL) $240→$365, Astera Labs (ALAB) $240→$450, Credo (CRDO) $252→$340.
Can this round of upgrades hold up?
The thesis hinges on the durability of the AI capex cycle — if 2028 visibility truly materializes, these targets have a foundation.
In plain terms = BofA is betting that "AI spending" lasts at least three more years; if companies pull back mid-cycle, these targets are at risk.
This reflects a broader market shift from pricing AI as a short-term theme to treating it as a mid-cycle industrial trend — but the longer the cycle, the higher the odds of a disruption along the way.
Content is for reference only, not financial advice.