As we approach the new year, investors will be evaluating the best stocks to consider, with the technology sector certainly of interest.
Semiconductor stocks will be targeted in particular, thanks to their reach in configuring artificial intelligence. That said, here are three of the top semiconductor stocks to invest in going into 2025.
Broadcom - AVGO
YTD Performance: +116%
One company leveraging the demand for AI chips of late is Broadcom AVGO which is a key supplier to Apple AAPL. Designing custom AI accelerators for data centers, Broadcom recently announced it secured two hyper-scale data center customers which are rumored to be Alphabet GOOGL and Meta Platforms META or the likes of Amazon AMZN and Microsoft MSFT.
These strategic partnerships have made Broadcom’s growth narrative very appealing with the company thought to be the second-largest AI semiconductor supplier.
Nvidia - NVDA
YTD Performance: +176%
We’ll pivot to the largest AI chipmaker Nvidia NVDA. While Nvidia’s Blackwell series AI chips have faced some challenges with overheating they are considered the highest-performing AI chips on the market.
Furthermore, Nvidia’s H100 and H200 series chips have sparked considerable growth with the company’s total sales projected at $129.02 billion in its current fiscal 2025. This is an increase of over 1000% from the start of the current decade with 2020 sales at $10.91 billion.
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Astonishingly, the price performance of NVDA has more than doubled the percentage growth the company has seen on its top line making it noteworthy that FY26 sales are projected to increase another 48% to $191.84 billion.
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Taiwan Semiconductor - TSM
YTD Performance: +94%
Last but not least is Taiwan Semiconductor TSM which is also a key supplier for Apple as the world’s largest provider of integrated circuit foundries (ICs). While Taiwan Semiconductor doesn’t manufacture AI chips directly, it provides the foundries that help other companies produce AI chips including Nvidia.
What may appeal to investors is that TSM has the cheapest P/E valuation on the list at 29.2X forward earnings. Even better, Taiwan Semiconductor is expected to post double-digit top and bottom-line growth this year and in FY25.
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Bottom Line
With theglobal marketfor artificial intelligence presumed to be worth trillions in the coming years, these top semiconductor stocks should be lucrative investments going into 2025. To that point, Broadcom, Nvidia, and Taiwan Semiconductor should continue to encompass this appealing growth narrative.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners UpNVIDIA Corporation (NVDA) : Free Stock Analysis Report
Broadcom Inc. (AVGO) : Free Stock Analysis Report
Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Meta Platforms, Inc. (META) : Free Stock Analysis Report
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