- Global chip revenues to hit $725 billion in 2025
- Nvidia seen as a sector winner on Blackwell deployment
- Cadence Designs and ON Semiconductor other predicted winners
Microchip industry sales are set to rise by 15% in 2025, believes Bank of America, hitting $725 billion. No prizes for guessing that Nvidia (NVDA:NASDAQ) is a predicted winner.
‘We see 2025 as a year of two different trends. In the first half, AI investments and Nvidia Blackwell deployments driven by US cloud customers sustain momentum in AI semis,’ analysts led by Vivek Arya wrote in a note.
But the investment bank’s analysts have other top picks which may be more surprising. ‘In the second half, interest could shift to less-crowded auto/industrial chipmakers on inventory replenishment and pick-up in auto production assuming a global economic recovery’.
Bank of America identified Lam Research (LRCX:NASDAQ) as a flash-memory tool leader poised for capital expenditure recovery and impact resolution in China.
Auto and EV (electric vehicle) leader ON Semiconductor (ON:NASDAQ) is highlighted for its potential cyclical recovery in the second half of 2025, and Cadence Design Systems (CDNS:NASDAQ) noted for its resilient double-digit growth, especially as the AI hardware cycle decelerates in the latter half of the year.
The bank’s other top picks include leaders in AI, such as Nvidia, Broadcom (AVGO:NASDAQ), and Marvell Technology (MRVL:NASDAQ).
‘In AI we continue to trust.. at least ‘til the second half 2025,’ the analysts wrote.
