Beyond NVIDIA: 5 Semiconductor Stocks Set to Dominate 2025

Key Points

• The semiconductor industry is set for a major rebound in 2025, driven by advancements in AI, IoT, and 5G technologies.
• While NVIDIA remains a leader, other players like Analog Devices, Semtech, and Onsemi are positioned for significant growth.
• These companies are capitalizing on emerging trends and are poised to dominate key segments of the market in 2025.

NVIDIA NASDAQ: NVDA is set for a strong performance in 2025, fueled by persistent demand for its industry-leading data center and AI technologies. Analysts at HSBC forecast an upside of 39%, with some others projecting even greater potential as the company continues to dominate the AI hardware space. However, NVIDIA’s growth isn’t just about AI—it is part of a broader recovery in the semiconductor sector, which is poised for significant expansion after years of disruptions and normalization.

Semiconductor Market Recovery: A Catalyst for Growth

One of the key drivers for 2025 is the near-completion of global semiconductor inventory normalization. Following years of supply chain disruptions and excess inventory, the industry is now better positioned to meet growing demand. This shift, combined with advancements in AI, IoT, and 5G technologies, is expected to fuel systemic growth across the semiconductor market.

Analog Devices: Positioned for a Comeback

Analog Devices NASDAQ: ADI is rebounding from a challenging 2024, with narrowing contractions and signs of recovery. In Q4 2024, the company reported revenue of $2.44 billion, outperforming expectations despite a 10% year-over-year decline. CEO Vincent Roche noted sequential demand improvements across all end markets, while CFO Prashanth Mahendra-Rajah expressed optimism for robust growth in 2025.

Growth drivers for Analog Devices include the ongoing expansion of 5G networks and the rapid adoption of IoT technologies, both expected to gain critical mass by mid-year. The company’s Q1 2025 guidance already exceeds consensus estimates, suggesting continued outperformance throughout the year.

Semtech: A Leader in Data Center Demand

Semtech NASDAQ: SMTC delivered a strong comeback in late 2024, reporting Q3 revenue growth of 17.5% to $238.3 million. The company also provided guidance for nearly 30% year-over-year growth in Q4, fueled by strong demand across all end markets.

The data center segment stood out with a 58% sequential increase in revenue, reflecting ongoing investment in AI infrastructure. Looking ahead to 2025, Semtech’s focus on high-growth verticals like cloud computing and IoT positions it for sustained double-digit growth.

Microchip Technology: On the Brink of Recovery

Microchip Technology NASDAQ: MCHP remains in the process of inventory correction but is nearing an inflection point. The company plans to shut down an excess production line in early 2025, which will reduce costs and improve operational efficiency.

By mid-year, normalized end-market demand is expected to drive a recovery, with forecasts projecting nearly 20% top-line growth in the latter half of the year.

GlobalFoundries Inc: Design Wins and Growth Potential

GlobalFoundries' NASDAQ: GFS is capitalizing on new design wins, with strength across its diverse business portfolio. Although revenue contraction was reported in 2024, the company is on track to return to growth in Q1 2025.

Analysts estimate sequential growth will accelerate throughout the year, with annual revenue increasing by approximately 10%, driven by demand in IoT, industrial applications, and cloud connectivity.

Onsemi: Driving the SiC Revolution

Onsemi NASDAQ: ON is leading the charge in silicon carbide (SiC) technology, a key enabler for electric vehicles, renewable energy, and high-performance industrial applications. The company reported a 20% revenue contraction in Q3 2024 but outperformed expectations and is now guiding for sequential improvement across all segments in 2025.

Management anticipates high single-digit annual growth, with SiC technology playing a pivotal role in meeting the demands of next-generation industrial and automotive markets.

The Future of Semiconductors: A Rapidly Evolving Opportunity

The semiconductor sector is primed for a significant rebound in 2025, driven by advancements in AI, IoT, and industrial technology. NVIDIA, alongside key players like Analog Devices, Semtech, Microchip Technology, GlobalFoundries, and ON Semiconductor, is well-positioned to capitalize on these trends. For investors, these companies represent compelling opportunities in a rapidly evolving market landscape.