Truist: Semiconductor Supercycle Peak Still Ahead, Chip Stocks Seen Rising Through Q1 2027

Truist analysts said the semiconductor industry's fundamental and share-price peaks remain ahead, with chip stocks historically peaking about one quarter after fundamentals top out, according to a Tuesday research note cited by Investing.com. Analyst William Stein wrote that semiconductor fundamentals are in a "SuperCycle" that is growing faster and lasting longer than the 1998-2001 tech bubble. Consensus estimates project fourth-quarter 2026 semiconductor revenue will grow 74% year over year, marking a 15th consecutive quarter of improvement and a likely cycle peak. By contrast, semiconductor demand typically peaks in the seventh quarter at 29% growth; the tech-bubble peak was 50% growth before the cycle collapsed in its 14th quarter. Stein attributed the cycle's strength to data center and AI demand, adding that asynchronous recoveries across end markets, including a later rebound in industrial demand, extended its duration. Truist found chip stocks peak a quarter after revenue growth tops, meaning positive returns should persist at least through the first quarter of 2027. Truist reiterated Buy ratings on Nvidia (NVDA), AMD (AMD), Broadcom (AVGO), Monolithic Power Systems (MPWR) and TTM Technologies (TTMI).