NVIDIA NASDAQ: NVDA The company’s stock will rise in 2025 due to continued and pent-up demand for its advanced data centers and artificial intelligence technologies. Analysts are forecasting another 42% upside at the top end of their range, and the actual share price top could well be higher. However, the industrial semiconductor market is set to recover from years of turmoil with normalization and growth in 2025, and analyst estimates have been lowered.
The most important takeaway is that the normalization of semiconductor end-market inventories is complete or nearly complete globally and tailwinds are forming. The FOMC is cutting interest rates, and policy changes expected in 2025 will stimulate US economic activity and systemic demand for industrial semiconductor technologies. These are stocks worth keeping an eye on.
Analog Devices: Cautiously Optimistic for Strong Growth
Analog devices today
Analog devices
(As of 11:51 a.m. ET)
- 52 week range
- $179.63
▼
$244.14
- Dividend yield
- 1.66%
- P/E ratio
- 67.41
- Target price
- $249.33
Analog devices NASDAQ: ADI Business declined in 2024, but trends are positive and point to growth in 2025. Critical details include slowing declines, better-than-expected performance and stable earnings to support cash flow and balance sheet health.
The 2025 outlook predicts a continuation of trends and a return to growth before the end of the year. The company’s CEO reports improving sequential demand across all end markets, and the CFO is cautiously optimistic about strong growth in 2025.
The outlook for the first quarter is favorable, with the midpoint above consensus. Outperformance is expected throughout the year due to the low bar set by analysts. 5G and the Internet of Things will be one of the growth drivers in 2025. The Internet of Things boom is expected to begin by mid-year as 5G network expansion and artificial intelligence functionality reach critical mass.
Semtech returns to growth in 2024: strength recorded in all end markets
Semtech today
(As of 11:51 a.m. ET)
- 52 week range
- $16.19
▼
$66.64
- Target price
- $67.70
Semtech NASDAQ: SMTS is among the leading companies in the industrial semiconductor market, returning to growth in 2024. Its third-quarter results included revenue growth of nearly 18% and solid profitability, with better-than-expected guidance projecting another strong quarter with year-over-year growth accelerating to nearly 30%.
The outlook for 2025 is also optimistic, with revenue growth expected to continue at high double-digit rates, and MarketBeat’s consensus forecast is likely a conservative estimate.
The company reported strength across all end markets, with a particular focus on the data center segment, which grew 58% sequentially on demand that is not expected to abate in 2025.
Microchip technology is approaching a tipping point
Microchip technology today
Microchip technology
(As of 11:57 a.m. ET)
- 52 week range
- $62.63
▼
$100.57
- Dividend yield
- 2.70%
- P/E ratio
- 47.22
- Target price
- $90.95
Microchip technology NASDAQ: MPP is still adjusting inventories and restructuring its production lines to accommodate them. The company will shut down the excess line in early 2025 and begin to benefit from cost savings 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-calendar year 2025, which is the end of the fiscal year.
The outlook for the second half of the year, the first half of fiscal 2026, is robust, with revenue expected to grow nearly 20%.
GlobalFoundries Inc: Excellence and Tracking Growth in 2025
GlobalFoundries today
GlobalFoundries
(As of 12:02 pm ET)
- 52 week range
- $35.85
▼
$62.61
- P/E ratio
- 33.34
- Target price
- $50.21
GlobalFoundries’ NASDAQ: GFS The third quarter results are consistent with trends including a reduction in reductions, outperformance and a positive outlook. The company reports strength in its portfolio businesses driven by new design wins.
The forecast for the fourth quarter is for revenue to remain essentially flat year-over-year and return to growth in the first quarter of 2025.
Consensus for 2025 calls for accelerating sequential growth and about 10% for the year, which is a low estimate given the promise of the Internet of Things, cloud connectivity and industrial demand growth.
Onsemi: Leadership in SiC Power Semiconductors
Onsemi today
(As of 11:52 a.m. ET)
- 52 week range
- $59.34
▼
$86.77
- P/E ratio
- 17.81
- Target price
- $85.87
Onsemi NASDAQ: ON. is well positioned as a manufacturer of SiC-based semiconductors. Due to their durability and high-temperature performance, SiC semiconductors are well suited for a wide range of industrial applications, including electric vehicles and solar technologies.
The business bottomed out in the third quarter of 2024, contracting nearly 20% but exceeding expectations, and management plans for sequential improvement. Consistent strength was seen in three of the four operating segments, with the fourth and overall business expected to return to growth in F2025.
Next year’s guidance is for revenue growth to accelerate sequentially throughout the year, with full-year results expected to be in the single digits.
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