Investing.com -- Oppenheimer analysts highlighted four semiconductor stocks as top picks for 2025, emphasizing their strong ties to the booming AI sector.
The firm sees continued growth driven by AI-related demand, particularly in data center capital expenditure and enterprises monetizing AI strategies.
According to Oppenheimer, NVIDIA (NASDAQ: NVDA ) remains a standout, trading at 25x its CY26E EPS, below its three- and five-year averages. The company is the "largest volume producer of AI accelerators," dominating the AI infrastructure market with its full-stack hardware/software solutions, including AI GPUs, networking, and CUDA.
Oppenheimer expects NVIDIA's data center AI sales to hit $172 billion in CY25, despite ongoing challenges with liquid cooling systems.
Monolithic Power (NASDAQ: MPWR ) Systems is also a top pick at Oppenheimer, trading at 26x CY26E EPS. MPWR is noted as the primary supplier of 48V power to major AI GPU/ASIC suppliers like NVIDIA and AMD (NASDAQ: AMD ). Despite short-term pressures, including NVIDIA's decision to delay adopting vertical power, the firm believes MPWR is poised for long-term growth, particularly in the auto sector, with significant content gains at Tesla (NASDAQ: TSLA ) and Chinese electric vehicle manufacturers.
Broadcom (NASDAQ: AVGO ), trading at 31x CY26E EPS, is recognized as the largest custom ASIC design house and a major AI accelerator producer.
The firm expects the company's AI revenue to exceed $12 billion in CY24, driven by projects with Google (NASDAQ: GOOGL ), Meta (NASDAQ: META ), and ByteDance. Broadcom's diversified core franchises across networking, wireless, broadband, and software ensure sustainable growth.
Marvell (NASDAQ: MRVL ) Technology rounds out the list, trading at 31x CY26E EPS. Oppenheimer says Marvell is the leader in high-performance PAM4 DSPs and a significant player in custom ASIC design, with major projects ramping up with Amazon (NASDAQ: AMZN ) and Google.
The firm projects custom ASIC revenue to potentially double buyside models, contributing significantly to Marvell's growth.