Is the Semiconductor Dip a Buying Opportunity? BofA Says Yes - and Names Its Top Picks

TLDR

• The Philadelphia Semiconductor Index has underperformed the S&P 500 by 18%, which Bank of America calls a buying opportunity
• BofA maintains Buy ratings on ASML, ASM International, and STMicroelectronics
• Wafer fabrication equipment spending is forecast to hit at least $250 billion by 2028
• A reported Samsung-Broadcom five-year, $200 billion foundry deal anchors the bullish outlook
• BofA rates Nokia as a Buy, while flagging Ericsson and Logitech as Underperform

The semiconductor sector has sold off sharply in 2026, but Bank of America says the dip looks more like an opportunity than a warning sign.

The Philadelphia Semiconductor Index has underperformed the S&P 500 by roughly 18% from its peak. Analysts led by Didier Scemama say this tracks closely with past trade-tension-driven corrections, not the deeper 30% drawdowns seen during full cyclical downturns in 2011, 2022, and 2024-2025.

Bank of America frames the selloff as driven by trade tensions, not weak fundamentals. That distinction, the bank argues, is being missed by the broader market.

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