April 14 - Bank of America remains bullish on top semiconductor names following the U.S. government's move to delay new tariffs on electronics, including chips and smartphones.

Nvidia (NVDA, Financial) and Broadcom (AVGO, Financial) are among the firm's favored stocks, with analysts highlighting the temporary tariff pause as a positive that allows further discussion on key tech supply chains. Semiconductors account for roughly half of global electronics demand, the note said.

The delay is not a cancellation, but analysts viewed it as a window for U.S. policymakers to shift focus toward expanding domestic chip production. President Trump signaled that “sectoral” tariffs may still be introduced in the coming months, potentially affecting U.S. electronics assembled in China using foreign-made processors.

Bank of America expects large-scale U.S. investments from Taiwan Semiconductor Manafacturing Company (TSM, Financial), Apple (AAPL, Financial), and Nvidia, totaling hundreds of billions, to influence future policy considerations. TSMC is expected to handle most front-end chip production for its U.S.-based clients through its Arizona facilities.