3 Semiconductor Stocks Well-Poised for a Comeback in 2026

Semiconductor stocks have experienced a significant rally in 2025 despite a highly volatile market environment due to tariffs, inflationary pressures, high interest rates and geopolitical issues. The iShares Semiconductor ETF SOXX, which provides exposure to U.S.-listed companies in the semiconductor industry, has soared 43% year to date.

The momentum is likely to continue in 2026 as the rising spending in artificial intelligence (AI) and high-performance computing infrastructure will fuel demand for semiconductors. According to the World Semiconductor Trade Statistics report, global semiconductor sales are expected to surge 26.3% year over year to $975.4 billion in 2026. This expansion is broad-based, cutting across regions and product categories. AI accelerators, high-bandwidth memory (HBM), advanced logic chips and supporting infrastructure are expected to be the primary growth engines.

AI remains the most important catalyst. Cloud service providers and enterprises are accelerating investments in AI training and inference workloads. This is driving demand not only for graphics processing units (GPUs) and custom accelerators but also for memory, networking components and power solutions. As AI models grow larger and more complex, chip content per system continues to rise.

Investors looking to benefit from this trend should consider investing in semiconductor stocks. In our opinion, NVIDIA Corporation NVDA, Micron Technology, Inc. MU and Amphenol Corporation APH are some of the stocks that are positioned to benefit as semiconductor demand spikes in 2026.

Moreover, these stocks have a favorable combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or #2 (Buy). Per Zacks’ proprietary methodology, stocks with a combination of a Zacks Rank #1 or #2 and a Growth Score of A or B offer solid investment opportunities.

Our Picks

Micron Technology is emerging as one of the biggest beneficiaries of the memory market recovery. After a deep downturn driven by oversupply and weak pricing, DRAM and NAND markets are tightening again. This shift is happening alongside a structural increase in memory content driven by AI workloads.

HBM is a major growth driver for Micron Technology. HBM is critical for AI accelerators used in data centers, and demand is accelerating faster than supply. MU has made steady progress in HBM product development and capacity expansion, positioning itself as a key supplier to leading AI chipmakers, including NVIDIA. HBM carries higher margins than conventional DRAM, which should support profitability as volumes scale.

Beyond AI, Micron Technology is also benefiting from improving demand in PCs, smartphones and automotive applications. Pricing is also recovering as inventory levels across the supply chain have normalized.

The Zacks Consensus Estimate for fiscal 2026 and 2027 revenues indicates a year-over-year increase of 89.3% and 22.8%, respectively. The consensus mark for earnings calls for growth of 278.3% for fiscal 2026 and 26.2% for fiscal 2027.

While its shares have already seen strong gains, the company’s long-term growth story extends well into 2026 and beyond. Micron Technology currently sports a Zacks Rank #1 and has a Growth Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.

Micron Technology, Inc. Price and Consensus

Micron Technology, Inc. price-consensus-chart | Micron Technology, Inc. Quote

Amphenol is a major supplier of interconnect products, including fiber-optic cables, electrical connectors, antennas and sensors. These components are essential in smartphones, laptops, networking gear and data center infrastructure alike. The company’s recent acquisition of CommScope’s broadband unit has expanded its connectivity offerings for both communications and data centers.

AI data centers are a major opportunity for Amphenol. High-speed connectivity, power management, and signal integrity are essential for AI servers and networking hardware. Amphenol’s products are deeply embedded in these systems, allowing the company to benefit directly from higher chip density and rising system complexity.

The automotive segment adds another layer of growth. Electric vehicles and advanced driver-assistance systems require more sensors, control units and connectivity, all of which increase demand for Amphenol’s components.

As semiconductor volumes recover and AI infrastructure spending expands, Amphenol’s revenue base should benefit from both higher unit demand and richer content per system in 2026. The Zacks Consensus Estimate for 2025 and 2026 revenues indicates a year-over-year increase of 49.4% and 12.4%, respectively. The consensus mark for earnings suggests growth of 74.1% for 2025 and 21.4% for 2026. Amphenol currently sports a Zacks Rank #1 and has a Growth Score of B.

Amphenol Corporation Price and Consensus

Amphenol Corporation price-consensus-chart | Amphenol Corporation Quote

NVIDIA is the clear leader in high-performance GPUs, which have become the backbone of AI computing. Its GPUs power everything from gaming laptops and AI PCs to data centers that train and run large language models.

NVIDIA’s strength lies not just in hardware but in its full-stack approach. GPUs, networking products, software platforms and developer tools work together to create a powerful ecosystem. This integration makes it difficult for competitors to displace NVIDIA in large-scale AI deployments.

The company is also benefiting from the expanding use of its products beyond data centers. AI applications in automotive, robotics and edge computing are gaining traction. Each of these areas increases demand for advanced chips and software, extending NVIDIA’s addressable market.

As semiconductor sales are projected to reach nearly $1 trillion in 2026, NVIDIA is likely to remain one of the biggest beneficiaries in the industry. Continued innovation, strong customer relationships and scale advantages position the company to capture a significant share of the next growth phase.

The Zacks Consensus Estimate for fiscal 2026 and 2027 revenues indicates a year-over-year increase of 62.4% and 43.2%, respectively. The consensus mark for earnings indicates growth of 55.5% for fiscal 2026 and 54.4% for fiscal 2027. NVIDIA currently carries a Zacks Rank #2 and has a Growth Score of B.

NVIDIA Corporation Price and Consensus

NVIDIA Corporation price-consensus-chart | NVIDIA Corporation Quote

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