ZACKS·2026-02-17 10:41Core Insights - The International Monetary Fund (IMF) projects global GDP growth of approximately 3.3% for 2026, supported by corporate investment in digital infrastructure and advanced technologies [1] - The global semiconductor industry is expected to reach $975 billion in annual sales in 2026, driven by an AI infrastructure boom [2] - The industrial sector is bolstered by sustained defense spending and strong commercial aerospace backlogs, with U.S. national defense spending exceeding $800 billion annually [7] Technology Sector - AI-driven capital expenditure is a key earnings catalyst in 2026, with major companies like Microsoft, Amazon, and Alphabet investing heavily in AI data centers and cloud infrastructure [4] - The Semiconductor Industry Association anticipates global semiconductor sales to approach $1 trillion in 2026, indicating a 26% growth, primarily due to advanced logic and high-bandwidth memory linked to generative AI workloads [5] - Companies such as NVIDIA, Taiwan Semiconductor, ASML, and Applied Materials are positioned to benefit from this growth, with TSM holding a Zacks Rank 1 (Strong Buy) and the others carrying a Zacks Rank 2 (Buy) [5] Industrial Sector - The industrial sector benefits from strong defense spending and a robust commercial aerospace backlog, with companies like Lockheed Martin and RTX reporting significant backlogs of $194 billion and $268 billion, respectively [7] - Electrification and grid modernization are also key growth drivers, with firms like Eaton and Siemens focusing on data center power demand and energy transition investments [8] - These factors provide substantial backlog visibility and earnings support as the sector moves into mid-2026 [8]