Major banks, including Bank of America, are surprisingly unanimous in predicting that the bull market for AI chip stocks will continue next year, and that the position of NVIDIA Corporation (NVDA.US) is unshakeable!

The concept stocks of Artificial Intelligence (AI) have had a "not-so-good" time recently. After experiencing a series of ups and downs, the focus is now on 2026, with many well-known Wall Street analysts stating that they will continue to hold on to their preferred chip stocks, as the "feast" is far from over. Analysts from Bank of America informed clients in a report last week that in 2026, Artificial Intelligence is still a hot area, and chip stocks are one of the best ways to capitalize on the AI trend. They predict that sales will grow as cloud computing giants continue to purchase hardware to build data centers. Despite the recent overall tech stock pullback, many of the large-cap stocks that Bank of America is focusing on for 2026 have seen a decline in their stock prices, but they are still the leaders in the field. The AI sector has seen significant growth this year, outperforming the S&P 500 index. It is worth noting that many of these stocks also overlap with the semiconductor stocks that analysts from Jefferies, an American investment bank, are focusing on. These analysts have stated that they will continue to invest in the AI sector until 2026. What does this signal? In recent weeks, concerns about an AI bubble have put pressure on the tech sector. However, Jefferies and Bank of America are implying that they believe some of the biggest beneficiaries this year will still be winners next year. Although the stock price of AI chip leader NVIDIA has declined by over 12% from its peak in October last year, as of last Friday's close, its year-to-date increase still exceeds 30% as market demand for its advanced chips has driven sales to record levels. Bank of America analysts expect NVIDIA to continue its strong growth momentum next year, with a steady stream of new products. They believe NVIDIA is the best choice for large-cap stocks in 2026, along with custom AI chip manufacturer Broadcom, semiconductor equipment companies Lam Research, KLA, Analog Devices, and Cadence Design Systems. Jefferies has also recommended NVIDIA, Broadcom, Lam Research, and KLA in a report, as well as semiconductor equipment company Applied Materials and inspection equipment provider Camtek. Jefferies states that despite briefly replacing NVIDIA as a market hotspot earlier, Broadcom remains its top recommended choice in the AI field. "Given the technological moat and valuation, we have not given up on NVIDIA. But based on the expected growth of the custom chip business, Broadcom may have more room for upside," the bank added. Jefferies further explains that Google, a long-term customer of Broadcom, recently decided to sell its custom chips to third parties such as Meta and Anthropic, which could be an "opportunity" for Broadcom, along with an increasing number of custom chip customers, possibly including Apple. In fact, not only Bank of America and Jefferies, but Morgan Stanley also previously released a research report stating that under the unprecedented AI infrastructure boom and the strong destocking pace of traditional analog chips/MCUs (microcontrollers), the "long-term bull market logic" for chip stocks remains intact, and chip stocks are likely to be one of the most outstanding sectors in the US stock market next year. Accompanying the bullish predictions, Morgan Stanley has also introduced the "2026 Preferred Chip Stocks" list: NVIDIA, Broadcom, and high-speed interconnect chip manufacturer Astera Labs are the top three. It is clear that the lists highly overlap. This article is reprinted from "Cai Lianshe", author: Huang Junzhi; GMTEight editor: Feng Qiuyi.