5 Semiconductor Stocks Wall Street Analysts Predict Could Soar In 2025

Benzinga · 03:55

The semiconductor sector has had an electrifying run in recent years, but 2024 proved to be more selective. While some chipmakers soared to triple-digit gains, others struggled to stay afloat.

As traders look forward to2025, a fresh question emerges: Should you chase the winners, pick the laggards, or focus on undervalued opportunities with high analyst backing?

The iShares Semiconductor ETF (NYSE:SOXX) delivered a 15.2% year-to-date gain as of Dec. 23, cooling off after a massive 65% surge in 2023. Within the group, performance varied wildly:

Top Performers: Nvidia Corp. (NASDAQ:NVDA) rose 180%, while Broadcom Inc. (NASDAQ:AVGO) gained 109%.
Biggest Laggards: Intel Corp. (NASDAQ:INTC) sank 60%, Microchip Technology Inc. (NASDAQ:MCHP) fell 36%, and ON Semiconductor Corp. (NASDAQ:ON) dropped 20%.

The key takeaway? The semiconductor market is far from homogenous, with companies diverging sharply based on their ability to capitalize on emerging trends like AI.

5 Chip Stocks Analysts Are Betting On for 2025

Rather than chasing laggards or jumping on already overheated names, traders might want to focus on undervalued semiconductor stocks that align with analysts' bullish forecasts.

Here are five potential winners for 2025:

5. Applied Materials (NASDAQ:AMAT)

Median Price Target (upside vs. current market price) : 32.02%
2024 YTD Performance: +3.29%
2023 Total Return: 67.97%
Market Cap: $136.21 billion
P/E Ratio (Next 12 Months): 17.7x

4. Monolithic Power Systems (NASDAQ:MPWR)

Median Price Target (upside vs. current market price): 33.08%
2024 YTD Performance: -2.20%
2023 Total Return: 79.78%
Market Cap: $30.09 billion
P/E Ratio (Next 12 Months): 38.6x

3. Micron Technology (NASDAQ:MU)

Median Price Target (upside vs. current market price): 43.12%
2024 YTD Performance: +4.80%
2023 Total Return: 71.93%
Market Cap: $99.64 billion
P/E Ratio (Next 12 Months): 11.4x

2. Advanced Micro Devices Inc.

Median Price Target (upside vs. current market price): 45.83%
2024 YTD Performance: -15.34%
2023 Total Return: 127.59%
Market Cap: $202.53 billion
P/E Ratio (Next 12 Months): 27.7x

1. Microchip Technology

Median Price Target (upside vs. current market price): 49.26%
2024 YTD Performance: -36.11%
2023 Total Return: 30.90%
Market Cap: $30.94 billion
P/E Ratio (Next 12 Months): 34.9x

Now Read:

AMD and Micron Are Top Analyst Picks for AI and Next-Gen Tech Growth

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