Nvidia, Broadcom In Focus - Analyst Hikes AI Market Forecast To Trillion-Dollar Peak
Bank of America Securities analyst Vivek Arya has raised his 2030 outlook for AI data-center systems, driven by a stronger-than-expected 2026 cloud capex plan and clearer supply expectations.
The updated outlook supports confidence in key semiconductor stocks ahead of their upcoming earnings reports.
Raised AI Data-Center Market Outlook
Arya increased his total addressable market (TAM) estimate for AI data-center systems to $1.4 trillion by 2030, up from the previous $1.2 trillion.
He expects the broader data-center systems market to accelerate in 2026, with overall systems growth projected at 64% year-over-year, while AI systems are expected to grow by 100% YoY as new accelerator deployments ramp up.
Supply Risks and Margin Protection
Arya downplayed near-term supply risks, noting that most of the expected 2026 High-Bandwidth Memory (HBM) supply growth (~75% Y/Y) and Chip-on-Wafer-on-Substrate (CoWoS) supply growth (~70% Y/Y) were already allocated and secured from last year.
He also expects AI accelerator vendors to pass on rising HBM/DDR costs to customers, thereby maintaining margins as volume and system sales scale.
Company-Specific Implications and Updated Estimates
Regarding specific companies, Arya highlighted Nvidia Corp’s (NASDAQ:NVDA) strong position, with $0.5 trillion in sales visibility through 2026.
He raised Nvidia’s revenue estimates by 7% for fiscal 2027, 2% for fiscal 2028, and 2% for fiscal 2029, along with raising EPS estimates by 8%, 3%, and 3% for the same periods.
For Broadcom Inc. (NASDAQ:AVGO), Arya raised revenue estimates by 5% for fiscal 2026, 2% for fiscal 2027, and 2% for fiscal 2028, while slightly lowering gross margin estimates due to a higher Application-Specific Integrated Circuit (ASIC)/compute mix.
He raised EPS by 4%, 2%, and 1% for the same periods, respectively.
Lastly, Arya adjusted Marvell Technology Inc.’s (NASDAQ:MRVL) revenue estimates post-XConn acquisition.
He expects healthy growth in Trn3 and 800G/1.6T optics through fiscal 2027, though visibility on next-gen programs remains limited until calendar 2027.
NVDA Price Action: Nvidia shares were up 1.62% at $185.76 at the time of publication on Tuesday.
Photo by Remus Rigo via Shutterstock
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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