From Nasdaq: 2025-05-02 15:25:00

Companies in the Semiconductor – General industry are driving the technological revolution with products powering HPC, AI, IoT, and more. Strong growth projections have led to soaring share prices. NVIDIA Corp. (NVDA) and Texas Instruments (TXN) are top picks. Global semiconductor sales are expected to grow 11.2% in 2025, driven by AI and IoT demands.

AI is a key driver in the semiconductor industry, with technology companies heavily investing in AI capabilities. Geopolitical tensions are also impacting semiconductor demand. The U.S. government’s focus on reducing dependence on China will shape the industry’s future. Despite macroeconomic concerns, the industry continues to show promising growth potential.

The Zacks Semiconductor-General Industry is ranked #92, indicating strong prospects. Current valuation is rich, with the industry trading at a premium. NVIDIA Corp. (NVDA) and Texas Instruments, Inc. (TXN) are recommended stocks due to their market leadership and growth potential. Semiconductor supply chains are adjusting to reduce dependence on China and enhance reliability.

NVIDIA Corp. (NVDA) leads in graphics and compute solutions, driving growth through AI and accelerated computing. Texas Instruments (TXN) focuses on analog and embedded processing chips, with a strategic shift towards internal manufacturing. Both companies show promising growth potential despite current market challenges. Analyst estimates project revenue and earnings growth for both firms.

The semiconductor industry remains strong, with the Zacks Semiconductor-General Industry gaining 22.5% in the past year. Forward P/E ratio indicates rich valuation, but long-term growth prospects are positive. NVIDIA Corp. (NVDA) and Texas Instruments, Inc. (TXN) are top stock picks in the industry. Analysts expect continued revenue and earnings growth for both companies.



Read more at Nasdaq: Geopolitics, AI Drive Prospects in Semiconductors: 2 Stocks