Since the appearance of ChatGPT at the end of 2022, semiconductors have been one of the star sectors on the stock market. The strong increases accumulated by the main companies in the industry (among which Nvidia stands out, which has catapulted itself to be one of the most valuable firms in the world) in recent years have been one of the most recent concerns of the market, which feared that generated a new technological bubble. However, Artificial Intelligence continues to demonstrate that it is here to stay and that it will continue to benefit this sector. On average, Chip manufacturers in the United States and Europe offer an upward potential of 21% by 2025, after already recording an average increase of 6% so far this year.
The industry began the week with the news that has caused a flurry of purchases of the shares of chip manufacturers: Microsoft to invest $80 billion this year in building AI data centers. “The country needs a pragmatic export control policy that balances strong protection of the reliability of AI components in data centers along with the ability of North American companies to expand rapidly and provide a reliable source of supply to consumers.” allied countries of the United States,” declared the president of Microsoft, Brad Smith, as reported from Bloomberg.
The atmosphere was also buzzing with expectations surrounding Nvidia’s new products. The big tech presented new models of chips, software and services with the aim of staying at the forefront of Artificial Intelligence computing. Its CEO, Jensen Huang, pointed out that the company still has a lot of growth ahead, stating that “demand continues to outpace supply” and that “this will be a year of absolute growth.”
Both news have once again provided a breath of fresh air in the global sector to such a level that, on average, the main semiconductor companies in the United States and Europe advance 6% in the few sessions accumulated in the newly released 2025. They achieve that average revaluation even with the falls this Tuesday on Wall Street due to employment data, stronger than expected (which suggests that the Federal Reserve will continue with its high rate policy for longer than expected). Up to four of the companies extend their annual profits above 10%: Micron Technology (one of the values of Tressis Eco30 Walletthe investment fund advised by elEconomista.es), Teradyne, First Solar and BE Semiconductor.
And, the truth is that, despite this strong start to the year for the industry in general, experts believe that this will once again be a great year for semiconductors: they predict that during 2025 companies will experience average increases of 21%.
All of them with purchase recommendations, First Solar, Microchip Technology, Advanced Micro Devices, ON Semiconductor, Monolithic Power Systems and Micron Technology are the chip firms that will experience, according to experts, the biggest increases in the stock market this year.
The American First Solar is dedicated to the manufacture of semiconductor panels with semiconductor technology. In its case, its increase in 2025 reaches 8%, after closing 2024 with increases of 2%, and the analysts’ forecasts are that continue to gain this advance an additional 45%. “First Solar’s growth prospects are solid, reinforced by in the United States by new manufacturing facilities in Ohio, Alabama and Louisiana. The expansion of energy demand associated with AI and data centers will also drive revenue growth, with sales increasing by more than 25% annually in 2025-27,” they explain from Bloomberg Intelligence.
Also with more than 40% upward trend, two other North Americans stand out: Microchip Technology and Advanced Micro Devices (AMD). Unlike First Solar, both companies closed 2024 recording negative numbers on the stock market, with declines of 36% and 18% respectively, but already in these early stages of 2025 they are on track to recover part of the lost value. Although the advance of the first round is 1%, that of AMD is close to 7% supported, in addition to the news from Microsoft, by the agreement with Dell for the company to use its semiconductors in its laptops. “While not on the same level as Nvidia, AMD’s near-term growth potential is much greater than that of most of its technology peers. AMD’s status as one of the top-rated semiconductor issuers is likely to persist, since Ebitda growth is driven by the demand for AI”, they highlight from BloombergIntelligence.
ON Semiconductor, Monolithic Power Systems and Micron Technology face increases of more than 30% in the stock market in the coming months, according to experts. The Eco30 firm stands out within the global sector for the strong growth that analysts expect for its profits, increasing by almost 500% compared to those they predict for the whole of 2024. Another of the incentives that has most driven this chip firm , the one that rises the most in 2025, is its selection by Nvidia as its main supplier of its new GPUs (graphic storage units).
Nvidia, the undisputed queen of AI throughout this time, has also benefited from both news and in less than a week its shares are approaching a 5% revaluation (until this Tuesday, the rise was over 10%, but it gave way almost 5% in the last session). In his case, and after two years in which he has accumulated advances of more than 200%, analysts are still seeing potential for its shares of 22% and they continue to advise buying them. Your profits will again experience increases of more than 50% this year.
In Europe, the potential of the Dutch company NXP and the Norwegian Nordic Semiconductor also stands out, at 24% and 21% respectively. The latter will also go from a negative income statement to registering profits this year.
LinkedinBeloud
#year #rise #European #semiconductors #fly #stock #market #potential
