NVIDIA NASDAQ: NVDA The stock is bullish in 2025 due to its state-of-the-art data center and continuous and insatiable demand for AI technology. Analysts predict another 42% increase at the high end of their range, and the actual stock price top could be higher. However, the industrial semiconductor market is set to rebound in 2025 after years of disruption, normalization and growth, and analysts’ forecasts are lower.
The critical measure is that Semiconductor Normalization of end-market inventory is complete or nearly complete globally, and tailwinds are building. The FOMC is cutting interest rates, and policy changes in 2025 will stimulate U.S. economic activity and systemic demand for industrial semiconductor technology. These are stocks to watch.
Analog Devices: Cautiously optimistic for strong growth
Analog devices today
(as of 06:07 PM ET)
- 52-week range
- $179.63
▼
$244.14
- Dividend yield
- 1.66%
- P/E ratio
- 67.34
- Price target
- $249.33
Analog devices Nasdaq: ADI Business contracted in 2024, but trends are positive and point to growth in 2025. Critical details include a narrow contraction, better-than-expected performance, and stable margins to maintain cash flow and balance sheet health.
The outlook for 2025 predicts a continuation of the trends and a return to growth before the end of the year. The company’s CEO reported improving sequential demand in all end markets, and the CFO is cautiously optimistic for stronger growth in 2025.
The Guidance for Q1 Ideally, coming up with a mid-point above consensus. Performance is expected throughout the year due to the low bar set by analysts. 5G and IoT will be one of the growth drivers in 2025. IoT is expected to start booming by mid-year with 5G network expansion and AI functionality reaching a critical mass.
Semtech looks to develop in 2024: Strength was reported in all end markets
Semtech today
(as of 06:07 PM ET)
- 52-week range
- $16.19
▼
$67.00
- Price target
- $67.70
Semtech NASDAQ: SMTC is between leading name In Industrial Semiconductor Market, Rebounding to Growth in 2024. Its FQ3 results included topline growth of nearly 18% and solid profitability compounded by better-than-expected guidance and another strong quarter with year-over-year growth up nearly 30%.
The outlook for 2025 is also strong, with revenue expected to grow at a high double-digit rate, and MarketBeat’s reported consensus is likely a low-ball estimate.
The company reported strength across all end markets with the data center segment buzzing, up 58% sequentially on demand that is not expected to slow in 2025.
Microchip technology is nearing an inflection point
Microchip technology today
(as of 06:07 PM ET)
- 52-week range
- $62.63
▼
$100.57
- Dividend yield
- 2.78%
- P/E ratio
- 45.73
- Price target
- $90.95
Microchip technology NASDAQ: MCHP Still deep in restructuring its manufacturing lines to improve and optimize its inventory. It will shut down an additional line in early 2025 and start realizing cost-saving benefits by the end of the year.
The remaining facilities have sufficient capacity to fill the gap once end-market demand normalizes, which is expected by mid-year calendar 2025, coinciding with the end of the fiscal year.
The forecast for the back half of the year, the first half of fiscal 2026, is strong, with top-line growth expected at around 20%.
GlobalFoundries Inc: Better performance and tracking for growth in 2025
Global Foundries Today
(As of 06:07 PM ET)
- 52-week range
- $35.85
▼
$62.61
- P/E ratio
- 33.31
- Price target
- $50.21
Global Foundries’ NASDAQ: GFS FQ3 results are consistent with trends, including a narrow contraction, better performance, and positive guidance. The company reports strength in its portfolio business, driven by The triumph of new design.
The outlook for Q4 is for revenue to be roughly flat compared to last year and to return to growth in FQ1 2025.
Consensus for 2025 is for accelerating growth sequentially and around 10% for the year, a low estimate given the outlook for IoT, cloud connectivity, and industrial demand growth.
Onsemi: Leading the Charge with High-Power SiC Semiconductors
Onsemi today
(as of 12/3/2024 ET)
- 52-week range
- $59.34
▼
$86.77
- P/E ratio
- 17.32
- Price target
- $85.87
onsemi NASDAQ: On is well positioned as a manufacturer of SiC-based semiconductors. Due to their durability and performance at high temperatures, SiC semiconductors are well suited for a wide range of industrial applications, including EVs and solar technology.
The business reached the bottom of its contraction in FQ3 2024, a contraction of around 20% but outside expectations, and management is guiding for a sequential improvement. Sequential strength was reported in three of the four operating segments, with the fourth and the entire business expected to return to growth in F2025.
The forecast for next year is for sequentially faster revenue growth throughout the year, with full-year results in the high-single-digit range.
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