Deutsche Bank predicts 16% growth in non-memory semiconductor sector for 2025, with AI leading.

From Investing.com: 2024-12-06 10:19:31

Deutsche Bank analysts predict 16% year-over-year growth in non-memory semiconductor sector for 2025, with AI leading the way. They expect GPU-based accelerators to see outsized growth, with companies like NVDA and AMD benefiting. The bank sees potential in NXP Semiconductors and ON Semiconductor for their structural improvements and valuations.

Investors are advised to focus on companies with strong upside potential. Despite SOX underperformance in 2024, Deutsche Bank remains cautiously optimistic for 2025. Challenges like geopolitical uncertainties and high valuations persist, but companies like AVGO and MRVL are well-positioned to capitalize on industry growth.

Deutsche Bank analysts stress the importance of selectivity for investors, recommending stocks like NXPI and ON for broad-based semiconductors, and AVGO and MRVL for the AI sector. They believe these companies are poised to benefit from industry dynamics and growth acceleration.



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