Bank of America will support Nvidia and other major semiconductor companies in 2025, even after another strong year for the sector. “In the first half of the year, (artificial intelligence) investments by US cloud customers and NVDA Blackwell adoption sustained momentum in the AI semiconductor industry,” wrote Vivek Arya. “However, in the second half of the year, attention may shift to automobile/industrial semiconductor manufacturers, which do not attract many people, as inventory replenishment and automobile production recover, assuming the global economy recovers.”Investing in artificial intelligence Semiconductor stocks are gearing up for another winning year as the market continues to rise and shows no signs of easing. Nvidia is on track to end the year up 172%, and Broadcom’s stock has nearly doubled, hitting a new all-time high last week. Looking ahead, Arya predicts semiconductor sales will increase 15% to $725 billion next year, while memory sales will increase 20% year over year, outpacing this year’s nearly 8% growth. I predict that. However, due to Chinese regulations, sales of wafer fabrication equipment are expected to increase by only 5%. “Despite the crowded nature of AI stocks, the continued pace of innovation in cloud… service providers, (across addressable markets) expansion into enterprise on-premises and sovereign deployments, training… and inference.” It can be seen that the “arms race” continues. ” he wrote. “However, after two years of AI Silicon’s annual growth rate above 100%, AI stocks could peak in the second half of 2025E as investors begin to worry about the harsh year-over-year comparisons in 2026E. ” Beyond AI leaders Nvidia, Broadcom, and Marvell Technology, Arya is leading flash memory equipment leader Lam Research as capital spending recovers. We predict that there will be significant tailwinds for the company. However, China’s export restrictions pose short-term risks. AVGO YTD Mountain Broadcom’s stock price this year: “We expect (wafer fabrication equipment) to experience double-digit growth in 2026/27 given continued demand for cutting-edge logic/memory and advanced packaging. I predict,” Arya wrote. “Our semi-cap top pick is LRCX, but we also continue to like KLAC, AMAT.” The company also names ON Semiconductor as a potential winner for the second half of the year. The stock has underperformed this year, falling more than 21%.
Bank of America names NVIDIA and these chip stocks as top stocks for 2025
By NvidiaDaily
