UBS sees generational semiconductor boom, highlights stock winners

https://ca.finance.yahoo.com/news/ubs-sees-generational-semiconductor-boom-114008868.html

From article

\>UBS is forecasting a substantial expansion in the global semiconductor industry, projecting revenues will reach $2.38 trillion by 2027 as agentic AI drives broad-based demand across memory, logic, and CPU segments.

Analyst Nicolas Gaudois told clients in a note that UBS forecasts semiconductor industry sell-in to hit $1.62 trillion in 2026, up 118% year-over-year, before climbing a further 46% to $2.38 trillion in 2027.

While UBS acknowledged that year-over-year growth rates will inevitably decelerate from elevated levels, the firm said other cycle indicators "remain in the green," including foundry utilization rates, assembly equipment revenues, and memory industry operating profits, all pointing upward into late 2027.

On stock positioning, UBS favors wafer fabrication equipment stocks and AI logic semiconductors and is "less sanguine on Analog."

Names included in the bank’s most preferred list include Applied Materials, ASML, Micron Technology, Samsung Electronics, SK Hynix, TSMC, and Texas Instruments.