Bank of America analyst Vivek Arya expects the global semiconductor industry's total addressable market to reach $3.2 trillion by 2030, nearly doubling from an estimated $1.7 trillion this year. The forecast comes as investors debate whether a potential slowdown in AI development could weaken chip demand, but Arya expects the industry's longer-term growth trajectory to remain strong.

According to BofA, the expansion would be driven primarily by accelerating demand for memory chips and data-center infrastructure, while recoveries in the automotive and industrial semiconductor markets would provide additional growth. The outlook suggests that AI-related demand could remain an important catalyst for the sector even if spending growth becomes more disciplined.

BofA sees Micron as a potential leader if semiconductor momentum continues, while Lam Research and Applied Materials could benefit from increased investment in chip manufacturing equipment.

$Micron Technology(MU)$  $Intel(INTC)$  $Lam Research(LRCX)$  $Applied Materials(AMAT)$