Top semiconductor stocks APH, AVGO, and NVDA expected to maintain momentum amid DeepSeek disruption.

From Nasdaq: 2025-01-28 11:51:00

U.S. semiconductor giant NVIDIA plummeted 17% after Chinese AI company DeepSeek showcased low-cost models, causing drops in other tech stocks like Broadcom, AMD, and Amphenol. Despite this disruption, APH, AVGO, and NVDA are expected to maintain momentum and present a buying opportunity.

DeepSeek’s efficient and cost-effective AI models, like the latest open-source model DeepSeek-R1-Zero, are rivaling big tech models like Microsoft-backed OpenAI and Meta Platforms’ Llama on benchmarks. DeepSeek’s low-cost model development is raising questions about the billions U.S. tech giants are spending on AI infrastructure.

Amphenol, Broadcom, and NVIDIA are well-positioned to benefit from the increasing deployment of AI and GenAI technology. APH’s diversified business model and strong defense technology prospects, along with Broadcom’s expanding AI portfolio, indicate solid growth potential. NVIDIA’s GPUs and technological superiority are validated by DeepSeek’s success.

NVIDIA’s stock has surged 93.1% in the past year, with expectations of continued growth fueled by increased GPU usage and strong demand in the Gaming and ProViz markets. Amphenol and Broadcom are also poised for growth, with APH expecting a mid-to-high single-digit range increase in Commercial Air sales.

Investors are eyeing 5 potential stocks set to double in 2024, including under-the-radar picks. Amphenol, Broadcom, NVIDIA, and Meta Platforms are among the stocks analyzed for investment opportunities in the semiconductor sector. The disruptive impact of DeepSeek’s low-cost AI models is raising questions about spending trends in the tech industry.



Read more at Nasdaq: 3 Top-Ranked Semiconductor Stocks to Buy Despite DeepSeek Disruption