Oppenheimer's Top 2025 Semiconductor Picks: AI and Data Center Growth Lead the Charge

As we step into 2025, the semiconductor industry is poised for significant growth, driven primarily by the booming AI sector and expanding data center capital expenditure. Oppenheimer analysts have highlighted four standout semiconductor stocks that are well-positioned to capitalize on these trends: NVIDIA (NASDAQ:NVDA), Monolithic Power Systems (NASDAQ:MPWR), Broadcom (NASDAQ:AVGO), and Marvell Technology (NASDAQ:MRVL). Let's dive into the key factors driving their growth and the broader semiconductor landscape.



NVIDIA (NASDAQ:NVDA): The AI Infrastructure Leader

NVIDIA, the largest volume producer of AI accelerators, is expected to see its data center AI sales hit $172 billion in CY25. The company's full-stack hardware/software solutions, including AI GPUs, networking, and CUDA, make it the dominant player in the AI infrastructure market. Despite ongoing challenges with liquid cooling systems, NVIDIA's data center AI sales are projected to grow significantly, driven by the increasing importance of AI in various sectors.



Monolithic Power Systems (NASDAQ:MPWR): Powering AI and Auto Growth

Monolithic Power Systems, the primary supplier of 48V power to major AI GPU/ASIC suppliers like NVIDIA and AMD, is expected to experience long-term growth in the auto sector. Key factors driving this growth include significant content gains at Tesla (NASDAQ:TSLA) and Chinese electric vehicle manufacturers, growing demand for electric vehicles, increasing adoption of advanced driver-assistance systems (ADAS), and expansion into new markets and applications. MPWR's strong position as a primary supplier of 48V power solutions makes the auto sector a promising area for the company's long-term growth.



Broadcom (NASDAQ:AVGO): Custom ASIC Design House Capabilities

Broadcom, the largest custom ASIC design house and a major AI accelerator producer, is expected to see its AI revenue exceed $12 billion in 2024. The company's diversified core franchises across networking, wireless, broadband, and software ensure sustainable growth. Broadcom's custom ASIC design house capabilities are projected to significantly contribute to its AI revenue growth in 2024, driven by projects with major tech companies such as Google, Meta, and ByteDance.



Marvell Technology (NASDAQ:MRVL): Custom ASIC and PAM4 DSP Leader

Marvell Technology, the leader in high-performance PAM4 DSPs and a significant player in custom ASIC design, is expected to see its custom ASIC revenue potentially double, contributing significantly to its growth. The company's custom ASIC projects are ramping up with major customers like Amazon (NASDAQ:AMZN) and Google, further bolstering its growth prospects.



As the semiconductor industry continues to grow, driven by AI and data center demand, these four companies are well-positioned to capitalize on the trends. Investors looking to tap into the semiconductor sector's growth should consider these top picks for 2025.