Semiconductor industry outlook positive due to growth in AI and IoT technologies
From Nasdaq: 2025-01-10 08:56:00
Semiconductor companies like Intel, NVIDIA, and Texas Instruments are thriving due to technological advancements in AI and IoT. Global semiconductor sales are expected to grow by double digits in 2025, with AI workloads driving demand. The industry is set for steady growth, especially in the IoT sector, with industrial IoT alone expected to grow at a 12.1% CAGR.
Despite concerns, the industry’s long-term prospects remain bright. AI and IoT will continue to revolutionize operations across various sectors. The U.S. government’s focus on reducing dependence on China will shape the industry’s future. Major themes include AI’s impact on efficiency and automation, while geopolitical tensions drive demand for sophisticated electronics.
The Zacks Semiconductor-General Industry is currently positioned in the bottom 22% of Zacks-classified industries, with weakening near-term prospects. Despite this, the industry has shown strong stock market performance, outperforming the broader technology sector and the S&P 500 index. However, the current valuation of the industry is considered rich compared to historical levels.
NVIDIA and SUMCO are two stocks worth considering in the semiconductor industry. NVIDIA, a leader in graphics processing units, is seeing growth in AI-driven computing and enterprise deployments. SUMCO, a manufacturer of silicon wafers for semiconductor manufacturers, is experiencing a recovery in demand for AI-driven computing. Analysts have raised estimates for both companies, indicating positive growth potential.
Zacks Investment Research offers access to top stock-picking strategies that have outperformed the market averages. By exploring their portfolio services, investors can gain insights into high-potential stocks for the future. The industry outlook highlights the growth potential of companies like Intel, NVIDIA, Texas Instruments, and SUMCO in the semiconductor sector.
Read more at Nasdaq: Zacks Industry Outlook Highlights Intel, STMicroelectronics, Texas Instruments, NVIDIA and SUMCO