Piper Sandler Forecasts AI Compute Market to Hit $2.2 Trillion

Piper Sandler initiated coverage of five artificial intelligence semiconductor stocks on September 13, assigning overweight ratings to all five and forecasting price upsides between 19% and 37%. The firm identified Nvidia as the group leader with a $300 price target, followed by Broadcom at $460, Arm Holdings at $320, Advanced Micro Devices at $600, and Marvell Technology at $270.

Analysts David O'Connor and Zackary Altman argue that the AI sector is "starving for more compute capacity," noting that order books for AI chips are already full through 2028. The firm projects the total compute market will grow fivefold to $2.2 trillion by 2030. Of that total, the firm expects $2 trillion to be dedicated to AI chips and $200 billion to central processing units.