Semiconductor Sales Continue to Grow on AI Optimism: 4 Stocks to Grab

Robust Q2 Semiconductor Sales

Global semiconductor sales totaled $403.3 billion in the second quarter of 2026, surging 33.1% from the prior quarter, the Semiconductor Industry Association (“SIA”) reported on Thursday. On a month-over-month basis, semiconductor sales totaled $134.5 billion in June, jumping 9.7% from the month earlier.

Year over year, chip sales jumped 123.6% in June. Global semiconductor sales have now surged for 16 straight months, with gains in all the first six months of this year.

AI-related semiconductor stocks have come under significant pressure in recent weeks as investors question whether their rapid growth can be sustained. As a result, investors have been shifting away from chip stocks and taking refuge in more defensive sectors.

However, the downturn may only be temporary, as markets have experienced similar sell-offs in technology and semiconductor shares before. Despite these temporary setbacks, semiconductor companies have played a key role in driving the broader market’s gains in recent years.

The stellar performance in the second quarter follows a robust first quarter for the semiconductor market. Semiconductor sales totaled $298.5 billion in the first quarter, increasing 25% from the final quarter of 2025.

The Philadelphia Semiconductor Index (SOX) has rallied over 70% year to date. John Neuffer, SIA president and CEO, said, “Global chip sales are expected to exceed $1.5 trillion in 2026, with Q2 sales substantially outpacing sales in Q1 2026.”

Semiconductors have become a critical component of nearly all modern and next-generation technologies, supporting innovations such as the Internet of Things (IoT), 6G connectivity and artificial intelligence.

Growing demand from the automotive sector has also contributed to stronger chip sales. Meanwhile, the AI industry, which is still in the early stages of expansion, is encouraging major technology companies to pour billions of dollars into AI research, development and infrastructure.

As these companies continue increasing their investments in AI infrastructure, investor confidence in semiconductor stocks has remained positive.

4 Semiconductor Stocks With Upside

Micron Technology

Micron Technology, Inc., through global brands, namely Micron, Crucial and Ballistix, manufactures and markets high-performance memory and storage technologies, including Dynamic Random Access Memory, NAND flash memory, NOR Flash, 3D XPoint memory and other technologies. MU’s solutions are used in leading-edge computing, consumer, networking and mobile products. Micron continues to benefit from the surging demand for high-performance computing components for AI, data centers, and mobile devices.

Micron Technology has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 23.3% over the last 60 days. MU presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

NVIDIA Corporation

NVIDIA Corporation is the worldwide leader in visual computing technologies and the inventor of the graphics processing unit, or GPU. Over the years, NVDA’s focus has evolved from PC graphics to AI-based solutions that now support high-performance computing, gaming and virtual reality platforms.

NVIDIA has an expected earnings growth rate of 90.6% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1.5% over the last 60 days. NVDA currently has a Zacks Rank #1.

Texas Instruments

Texas Instruments is an original equipment manufacturer of analog, mixed-signal and digital signal-processing integrated circuits. TXN has manufacturing and design facilities, including wafer fabrication and assembly/test operations in North America, Asia and Europe. Management strategy has been to build assets that would be fully utilized through their lifetimes and outsource any excess demand in peak situations to outside foundries.

Texas Instruments’ expected earnings growth rate for the current year is 53.2%. The Zacks Consensus Estimate for current-year earnings has improved 9% over the past 60 days. Currently, TXN carries a Zacks Rank #2.

Taiwan Semiconductor Manufacturing Company Limited

Taiwan Semiconductor Manufacturing Company Limited is the world's largest dedicated integrated circuit foundry. TSM manufactures ICs for its customers based on their proprietary IC designs using its advanced production processes. Taiwan Semiconductor Manufacturing Company Limited’s goal is to establish itself as one of the world's leading semiconductor companies by building upon the strengths that have made it the world's leading IC foundry.

Taiwan Semiconductor Manufacturing Company Limited’s expected earnings growth rate for the current year is 54.5%. The Zacks Consensus Estimate for current-year earnings has improved 7.5% over the past 60 days. TSM presently carries a Zacks Rank #2.

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