As earnings season approaches, investment firm Oppenheimer's analysts have selected four semiconductor stocks—Broadcom (AVGO.US), Marvell Technology (MRVL.US), NVIDIA (NVDA.US), and Monolithic Power Systems (MPWR.US)—as top picks in the semiconductor sector for 2025. This selection is primarily based on their close ties to the rapidly growing artificial intelligence (AI) industry.

Oppenheimer firmly believes that the demand related to AI will continue to drive growth, particularly due to increased capital expenditures in data centers and the trend of businesses transforming AI strategies into actual revenue. Analysts noted in their report that, despite potential short-term drag from a weak macro economy on the automotive and industrial sectors, traditional server CPU sales experienced a 7% growth in 2024 and are expected to maintain this growth momentum in 2025. However, most data center expenditures remain concentrated in the AI sector.

Among these four stocks, NVIDIA stands out as it is regarded as the "largest AI accelerator manufacturer." With a comprehensive range of hardware and software solutions, including AI GPUs, networking, and CUDA, NVIDIA holds a leading position in the AI infrastructure market. Although NVIDIA's trading price is only 25 times its expected earnings per share (EPS) for fiscal year 2026, below its three-year and five-year average levels, Oppenheimer predicts its data center AI sales will reach $172 billion in 2025.

Additionally, Monolithic Power Systems is another key recommendation from Oppenheimer, currently trading at 26 times its expected EPS for fiscal year 2026. As a major 48V power supply provider for leading AI GPU/ASIC suppliers like NVIDIA and AMD, Monolithic faces short-term pressures, but analysts believe its long-term growth potential in the automotive sector remains significant, especially driven by Tesla and Chinese electric vehicle manufacturers.

Meanwhile, Marvell and Broadcom are also expected to benefit from the rise of custom application-specific integrated circuits (ASICs). Broadcom is currently trading at 31 times its expected EPS for fiscal year 2026 and is considered the largest custom ASIC design company and a major AI accelerator manufacturer. With collaborative projects with Google, Meta, and ByteDance, Broadcom anticipates its AI revenue to exceed $12 billion in 2024, with its diversified core businesses in networking, wireless, broadband, and software ensuring sustainable growth.

Finally, Marvell Technology also appears on the recommendation list at the same trading price of 31 times its expected EPS. As a leader in high-performance PAM4 DSPs and a significant player in custom ASIC design, Marvell's key projects are in collaboration with Amazon and Google.

In summary, these four semiconductor stocks are closely linked to the AI industry and are expected to continue achieving strong growth in 2025. With earnings season approaching, investors will closely monitor these companies' performance and the latest developments in the AI sector.

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（Source: uSMART HK）