Bank of America forecasts 50%-100% growth in AI-related analog chip sales this year amid rising data center power needs.
Analog chipmakers, which manage power flow in AI infrastructure, are gaining traction as demand for data center power management grows. Bank of America expects AI-driven sales in the sector to rise 50% to over 100% in 2024, outpacing broader semiconductor trends.
The sector benefits from diverse industrial applications, including factory automation, aerospace, and defense. After a prolonged inventory correction, restocking activity is accelerating as industrial demand recovers, setting up a positive outlook for late 2026.
Analysts highlight analog semiconductors’ defensive qualities, long product cycles, and strong free cash flow, positioning them favorably amid market volatility.