• Investing
  • Stock
  • Editor’s Pick
  • Economy
The Significant Deals
Stock

Which chip stocks to own in 2025? Deutsche Bank answers

by December 6, 2024
written by December 6, 2024

Investing.com — Deutsche Bank analysts outlined their semiconductor outlook for 2025, highlighting a mix of opportunities in artificial intelligence (AI) and broad-based semiconductors.

The bank said in a research memo that it expects 16% year-over-year growth in the ex-memory semiconductor sector, up from 8% in 2024, with AI continuing to dominate but broader recovery emerging in other subsectors.

“On the AI front, we expect GPU-based accelerators to deliver yet another year of outsized growth (led by NVDA, and somewhat AMD (NASDAQ:AMD)), with ASICs and Networking players also contributing (AVGO, NXPI, ALAB, etc.),” said the bank.

They believe that “hyperscaler capex growth” and technological advancements will sustain AI-related demand.

In the broader semiconductor space, Deutsche Bank (ETR:DBKGn) expects incremental improvement as the industry rebounds from cyclical lows in 2024. Among these names, NXP Semiconductors (NASDAQ:NXPI) and ON Semiconductor (NASDAQ:ON) are said to stand out for their structural improvements, conservative growth expectations, and attractive valuations.

Deutsche Bank’s analysts highlight that investors should focus on companies positioned at the lower end of the growth spectrum but with strong potential for upside.

Despite recent underperformance of the Philadelphia Semiconductor Index (SOX) compared to the S&P 500 (-6% in 2024), Deutsche Bank sees this as setting a “reasonable bar” for 2025, with cautious optimism driven by improving fundamentals.

However, they highlight challenges such as muted macroeconomic conditions, geopolitical uncertainties, and elevated valuations persist.

For investors, the firm recommends maintaining selectivity, with a preference for stocks like NXPI and ON in the broad-based space and AVGO and MRVL in the AI domain. These companies are seen as well-positioned to capitalize on growth acceleration and evolving industry dynamics.

This post appeared first on investing.com
0 comment
0
FacebookTwitterPinterestEmail

previous post
CFPB sues Comerica Bank over allegations of failing disabled and older Americans
next post
US appeals court upholds TikTok law forcing its sale

You may also like

BASF results down on impairments, restructuring

January 27, 2025

European chipmakers slump as traders gauge DeepSeek AI...

January 27, 2025

Nasdaq futures tumble as China’s AI push rattles...

January 27, 2025

China Vanke’s CEO, chairman resign amid growing liquidity...

January 27, 2025

Fuji Media, rocked by sexual misconduct allegations, says...

January 27, 2025

Italy’s MPS shares fall ahead of Mediobanca board...

January 27, 2025

British Land stock drops following stake sale

January 27, 2025

UMG shares rally after new multi-year pact with...

January 27, 2025

BASF shares indicated 3% lower as impairments drag...

January 27, 2025

Lawyer group urges overhaul of US bank charter...

January 27, 2025
Fill Out & Get More Relevant News








    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.

    Recent Posts

    • Trump implies government could cut contracts and subsidies to Musk’s companies

      June 7, 2025
    • Procter & Gamble to cut 7,000 jobs as part of broader restructuring

      June 6, 2025
    • Shein and Temu see U.S. demand plunge as loophole for cheap goods closes

      June 6, 2025
    • Shein and Temu see U.S. demand plunge as loophole for cheap goods closes

      June 5, 2025

    Categories

    • Economy (245)
    • Editor's Pick (3,646)
    • Investing (505)
    • Stock (6,426)

    Latest News

    • Trump implies government could cut contracts and subsidies to Musk’s companies
    • Procter & Gamble to cut 7,000 jobs as part of broader restructuring

    Popular News

    • Biden to announce decision on Nippon Steel bid for US Steel as early as Friday, CBS News reports
    • Exclusive-Maldives picks Centerview as debt adviser amid financing crunch

    About The Significant deals

    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 thesignificantdeals.com | All Rights Reserved

    The Significant Deals
    • Investing
    • Stock
    • Editor’s Pick
    • Economy