In Goldman Sachs' View, These TMT Stocks Are More Likely To Have A Great 2025

Goldman Sachs' Global Investment Research Department's U.S. TMT (Technology, Media, and Telecommunications) team has released its 2025 outlook report. Asian tech investors remain cautious about the sector due to supply chain issues, earnings/valuation pressures for some companies, competition for market share in the chip supply chain, and sustainability debates in the memory and device sectors. However, Goldman Sachs analysts believe that TSMC's (TSM.US) earnings report to be released this Thursday could be a positive catalyst.

Regarding holdings, data from Goldman Sachs' Prime Book shows that fund managers are net buying U.S. TMT stocks at the fastest pace in three months, mainly going long. The current long/short ratio for U.S. TMT positions is 1.98.

Looking at different sectors, in the semiconductor field, companies related to AI infrastructure construction such as NVIDIA (NVDA.US), Marvell Technology (MRVL.US), and Credo Technology (CRDO.US) shared constructive/optimistic outlooks at the CES conference. However, companies like ON Semiconductor (ON.US) are neutral or cautious due to uncertain demand and inventory issues.

Goldman Sachs analysts upgraded NXP Semiconductors (NXPI.US) to Buy with a target price of $257, as automotive MCUs (Microcontroller Units) are in the mid-to-late stages of a downcycle, and the company is expected to expand market share and achieve cross-cycle growth.

They downgraded AMD (AMD.US) to Neutral to reflect a more conservative outlook for the personal computer and traditional server businesses, as well as intensified competition in the data center GPU market.

In the payment sector, based on Q4 earnings, Goldman Sachs analysts are bullish on BILL Holdings (BILL.US), Affirm Holdings (AFRM.US), Global-E Online (GLBE.US), and Riskified (RSKD.US), while being cautious about Marqeta (MQ.US) and Global Payments (GPN.US).

Goldman Sachs advises investors to hold AI leaders and cyclical stocks in 2025 and lists the following stocks as Buy rated: NVIDIA (NVDA.US), Broadcom (AVGO.US), Lam Research (LRCX.US), Micron Technology (MU.US), Teradyne (TER.US), Entegris (ENTG.US), and NXP Semiconductors.

In the software sector, company management indicates a stable market environment, which aligns with Goldman Sachs' 2025 software outlook report. The report shows that after years of industry growth slowdown, revenue growth will stabilize in 2025.

Humanoid robots are one of the few themes still of interest to investors. Musk previously stated that if everything goes well, Tesla's (TSLA.US) humanoid robot production will increase tenfold to 50,000-100,000 units in 2026, and another tenfold in 2027. Affected by this, Goldman Sachs analysts believe that long-term visibility has increased, and they prefer Sanhua Intelligent Control.