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The semiconductor industry’s global sales continue to gain momentum. On Thursday, the Semiconductor Industry Association (SIA) reported a 3.5% month-over-month increase and 29.8% year-over-year growth in global semiconductor sales for the month of November 2025. November’s monthly sales were the highest ever in the semiconductor industry’s history. SIA represents 99% of the U.S. semiconductor industry by revenues and nearly two-thirds of non-U.S. chip firms.
Strong demand for chips powering artificial intelligence (AI), cloud computing, high-performance computing (HPC), quantum computing, and advanced consumer electronics are drivers for semiconductor industry players. NVIDIA NVDA, Micron Technology MU, Credo Technology CRDO and Amtech Systems ASYS are stocks that are well-poised to benefit from strong semiconductor sales. These stocks have a favorable combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Before we discuss the stocks in detail, let’s take a look at the semiconductor industry prospects for 2026 and beyond.
Forecasts for 2026 paint an optimistic picture, expecting sustained demand to propel sales growth. The World Semiconductor Trade Statistics (WSTS) projects an impressive 26.3% increase over 2025 to reach $975.4 billion, revised up from previous guidance of $760.7 billion. For 2025, semiconductor sales are expected to increase 22.5% over 2024 to $772.2 billion.
According to SEMI, global sales of total semiconductor manufacturing equipment by OEMs are expected to grow 13.7% year over year to $133 billion in 2025, with projections pegged at $145 billion for 2026 and $156 billion for 2027. The wafer fab equipment (WFE) segment, which includes wafer processing, mask/reticle, and fab facilities equipment, is projected to grow 11% to $115.7 billion in 2025, driven by aggressive investments in DRAM and high-bandwidth memory. WFE is expected to grow 9% in 2026 and 7.3% in 2027 as device makers increase spending on advanced logic and memory technologies.
The semiconductor industry is well-poised to benefit from the growing proliferation of AI and machine learning. Spending on AI infrastructure is expected to accelerate in 2026 as enterprises continue to leverage AI as part of their digital transformation efforts. According to Goldman Sachs, the consensus estimate among Wall Street analysts for AI hyperscalers’ 2026 capital spending is now pegged at $527 billion. IDC expects AI infrastructure spending to hit $758 billion in 2029. IDC projects that accelerated servers will exceed 95% of the server AI infrastructure spending by 2029, indicating a 42% five-year CAGR.
NVIDIA currently sports a Zacks Rank #1 and has a Growth Score of B. NVIDIA is benefiting from the strong adoption of its Hopper and Blackwell platforms and robust demand for AI infrastructure. The company currently expects $0.5 trillion in Blackwell and Rubin revenues from the start of 2025 through the end of calendar year 2026. For the fourth quarter of fiscal 2026, revenues are expected to hit $65 billion, +/-2%.
NVIDIA expects the transition to accelerate computing and generative AI across current hyper workloads to contribute roughly half of its long-term opportunity. Ongoing increase in spending over HPC and AI infrastructure bodes well for the company’s prospects.
The Zacks Consensus Estimate for fiscal 2026 earnings has been revised upward by 4.5% to $4.66 per share over the past 60 days, indicating a 56% jump from fiscal 2025.
Micron Technology currently sports a Zacks Rank #1 and carries a Growth Score of A. The consensus mark for fiscal 2026 earnings has surged 93.3% over the past 60 days to $31.36 per share. MU reported earnings of $8.29 per share in fiscal 2025.
Micron Technology benefits from a strong AI boom, which is driving strong demand for memory chips. Micron Technology’s investments in next-generation DRAM and 3D NAND ensure it remains competitive in delivering the performance needed for modern computing. Micron Technology is riding on a strong wave in high-bandwidth memory (HBM) demand. MU’s HBM3E products are attracting significant interest for their superior energy efficiency and bandwidth, which are ideal for AI workloads.
Micron Technology has created a more stable revenue base by shifting its focus away from the more volatile consumer electronics market and toward resilient verticals, such as automotive and enterprise IT. This bodes well for investors.
Credo Technology currently sports a Zacks Rank #1 and a Growth Score of B. The Zacks Consensus Estimate for fiscal 2026 earnings has increased 36.3% to $2.78 per share over the past 60 days. CRDO reported earnings of 70 cents per share in fiscal 2025.
Credo Technology is benefiting from strong demand for high-speed, energy-efficient data center connectivity solutions. Credo Technology is benefiting from a strong footprint in the active electrical cables (AEC) segment, which is its fastest-growing business. The rapid adoption of zero-flap AECs, which are 1,000 times more reliable than traditional laser-based optical modules with 50% lower power consumption, is a key catalyst in fiscal 2026.
Amtech Systems currently sports a Zacks Rank #1 and a Growth Score of A. The Zacks Consensus Estimate for fiscal 2026 earnings has jumped 186.7% to 43 cents per share over the past 60 days. ASYS reported earnings of 5 cents per share in fiscal 2025.
Amtech Systems manufactures and sells capital equipment and related consumables and services for semiconductor device packaging, wafer production and device fabrication. The company benefits from strong AI infrastructure as demand for advanced semiconductor packaging remains robust within ASYS’ Thermal Processing Solutions segment.
ASYS is benefiting from its improving cost structure. Cost reduction initiatives that included the elimination of some unprofitable products, a shift of some products to outsourced partners to reduce labor and fixed overhead costs and consolidation of manufacturing footprint from 7 sites to 4 sites have resulted in $13 million of annualized savings. Subletting underutilized factories is expected to help ASYS realize additional savings.
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This article originally published on Zacks Investment Research (zacks.com).
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