BofA Ups AI Data Center Forecast to $1.7T by 2030

BofA Lifts AI Market Forecast on Accelerator Growth

Bank of America has significantly raised its forecast for the artificial intelligence data center systems market to approximately $1.7 trillion by 2030, a notable increase from its previous $1.4 trillion estimate. This revision reflects an anticipated 45% compound annual growth rate, signaling strong confidence in the sector's expansion.

Key Market Drivers and Projections

The bank's optimism is driven by several factors, including a raised outlook for AI accelerators to $1.2 trillion, fueled by increased shipments of custom ASICs like Google TPU and AWS Trainium. The forecast for AI networking also saw a substantial increase to $316 billion from $240 billion, highlighting the critical role of high-speed connectivity in AI infrastructure.

Impact on Tech Stocks and Valuations

In response to these projections, Bank of America has updated its price targets for key semiconductor companies. Top picks include Nvidia, with a target raised to $320, and Micron Technology, which saw its target nearly double to $950. Other highlighted firms include Broadcom, AMD, and Marvell Technology, with Marvell's target increasing to $200 from $125.

Forward Outlook

The revised forecast underscores the accelerating investment in AI infrastructure. The market is expected to see further expansion as new compute and memory architectures become available, supporting increasingly complex AI workloads and driving sustained growth for component manufacturers through 2027 and beyond.

FAQ

Q: What is Bank of America's new AI data center market forecast?
A: The bank projects the market will reach approximately $1.7 trillion by 2030.

Q: Which companies received upgraded price targets?
A: Key companies include Nvidia, Micron Technology, and Marvell Technology.

Source: Investing.com