2 Semiconductor Stocks That Could Help Set You Up for Life

The World Semiconductor Trade Statistics organization's Spring 2026 forecast calls for the global chip market to grow by 90% in 2026 to $1.5 trillion, then rise another 27% in 2027 to about $1.9 trillion. That kind of expansion should continue to reward the industry's top suppliers.

Two overlooked semiconductor stocks with the potential to compound in value and help investors build wealth over the long term are Marvell Technology (NASDAQ: MRVL) and ASML (NASDAQ: ASML).

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1. Marvell Technology

Marvell is a key link in the artificial intelligence (AI) infrastructure supply chain. It sells interconnects and switching silicon that help data centers move data quickly, enabling chips to run at full speed, and growth is accelerating.

Revenue has increased at an annualized rate of 22% over the last five years. In the second quarter of 2026, revenue rose 37% year over year, powered by strong demand for connectivity products.

That could mark the start of a steeper demand curve. "AI-related bookings remain exceptionally robust, and we expect our revenue growth to accelerate further through the remainder of fiscal 2027," CEO Matt Murphy said.

Marvell's connectivity business is on track to grow more than 70% in 2026, and management expects that momentum to carry into next year. As interconnect speeds increase, average selling prices typically rise, which can lift both revenue and margins.

Marvell is already highly profitable, with a non-GAAP operating margin of 36.6% in the fiscal second quarter of 2027. Management expects revenue to continue outpacing operating expense growth, pushing the adjusted operating margin into the 38% to 40% range by the fiscal fourth quarter.

Operating leverage can drive earnings growth and long-term compounding for investors. The stock looks pricey at a forward price-to-earnings (P/E) multiple of 62, but analysts expect earnings to grow at an annualized rate of 46% in the coming years. That kind of growth could drive significant gains for patient investors.

2. ASML

ASML plays a vital role in the semiconductor industry. It makes lithography systems that print circuit patterns onto silicon wafers, as well as other systems and software for chipmakers, and it's the dominant supplier of this equipment.

Demand for these systems can be lumpy. The Netherlands-based company posted 30% local-currency revenue growth in 2023, followed by just 2.6% the next year. But the long-term trend is what counts. Over the last five years, ASML's share price has more than doubled, driven by double-digit annualized revenue growth.

The company's equipment is used to make CPUs, GPUs, and memory chips, allowing it to benefit from broad-based semiconductor demand. One catalyst for ASML is the long-term agreements that memory suppliers like Micron Technology are signing with customers. This increases visibility into long-term revenue for memory, which is in high demand right now. Management expects sales of advanced logic foundry systems to grow by over 25% in 2026, with sales of memory-related systems to increase by more than 75%.

ASML plans to increase capacity for its current high-volume extreme ultraviolet machines -- the tools used to produce leading-edge chips -- by about 30%, setting up the potential for higher revenue and earnings.

That long-term visibility is why the stock looks attractive today. A forward P/E of 39 isn't cheap, but it's supported by consensus expectations for 31% annualized earnings growth. Because chips make up a large portion of the cost of building data centers, the growth in capital spending to support AI should benefit ASML investors.

It's still early for AI

The near-term risk for Marvell and ASML is a slowdown in the rapid growth of data center spending, whether due to regulation or other unpredictable events. But investors who can hold through any ups and downs could see a big payoff over the next 10 years and beyond.

Bank of America's payments data show that only 3% of households currently pay for AI services. This indicates significant runway for AI demand, suggesting much more investment in compute to come.

Bank of America is an advertising partner of Motley Fool Money. John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ASML, Marvell Technology, and Micron Technology. The Motley Fool has a disclosure policy.