A top semiconductor strategist at Bank of America says the AI buildout is still in its early innings and could continue powering chip stocks through the end of the decade.
In a new CNBC interview, Bank of America Securities analyst Vivek Arya argues that the current infrastructure cycle, sparked by the rise of foundation models and accelerated computing, resembles prior multi-year technology waves and may last far longer than most investors expect.
He believes the ongoing surge in AI demand is the start of a 10-year investment cycle, and not a hype-driven peak.
“And if you look at when ChatGPT started, that was in late 2022. So we are just basically in the first three years of what could be a decade-long cycle… I think why this is happening is that there is this virtuous kind of flywheel that we have where there’s infrastructure spending that is leading to the creation of intelligence, which is being monetized, which is then being fed right back into the deployment of more infrastructure.”
Arya points to semiconductors as the engine of this transformation, fueling use cases across sectors that go far beyond traditional computing and data center workloads.
“This is industrial. This is health care. This is cybersecurity. This is defense. This is automation. This is automotive. So this is not just high-performance computing in isolation. This has the potential to create a productivity benefit in vast areas of the economy.”
He singles out three chip giants he believes are best positioned to ride the AI investment supercycle.
“I think it’s Nvidia. I think it’s Broadcom. It’s AMD. I think these are just exceptionally positioned companies in this environment.”
Arya’s comments come as AMD Lisa Su rejected concerns that the AI market is saturated with challengers like Google and Meta developing their own chips. She notes that demand is actually increasing as models get better and enterprises adopt the technology.
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