Nvidia and TSMC to unveil first domestic wafer for Blackwell chips, Axios reports
Investing.com -- Deutsche Bank outlined four Buy-rated semiconductor stocks in anticipation of their third-quarter earnings, which it said will further demonstrate a schism between artificial intelligence strength and broader chipmaking weakness.
The brokerage outlined at least two chipmakers that it saw remaining resilient despite limited AI exposure.
The bank’s latest analysis shows continued optimism for chip manufacturers with strong AI exposure, while maintaining a positive stance on automotive semiconductor suppliers despite some near-term challenges.
Deutsche Bank also expressed a preference for stocks with more "reasonable" valuations, which it said were growing increasingly rare.
Here’s a breakdown of Deutsche Bank’s top semiconductor picks:
Deutsche Bank reiterated its Buy rating on Broadcom while raising its price target to $400 from $350. The bank cited Broadcom’s growing strength in AI-related semiconductor demand as a key driver. Analysts emphasized the company’s leadership position in custom silicon and networking chips, which positions it to capitalize on increased hyperscale data center spending. The bank also lauded Broadcom’s recent partnership to supply AI chips to OpenAI, which had sparked a wave of analyst upgrades.
Marvell Technology (NASDAQ:MRVL)
Maintaining its Buy rating, Deutsche Bank increased Marvell’s target price to $90 from $80 in late-September. The firm highlighted Marvell’s substantial exposure to AI infrastructure and high-speed connectivity solutions. Analysts view Marvell as one of the best-positioned mid-cap semiconductor companies to capture additional AI-related revenue in fiscal 2026. The bank also pointed to improvements in data center and carrier demand as important near-term growth catalysts.
S&P Global Ratings upgraded Marvell Technology to ’BBB’ from ’BBB-’, citing improved revenue and profitability driven by AI and cloud demand. Additionally, analysts at Stifel and Needham raised their price targets for the company.
NXP Semiconductors (NASDAQ:NXPI)
Deutsche Bank reiterated a Buy rating on NXP while raising its target price to $265 from $250 in July. The bank praised NXP’s execution in automotive and industrial segments, where the company continues to benefit from increasing semiconductor content per vehicle and growing electric vehicle adoption. Analysts also highlighted NXP’s consistent margin performance and disciplined approach to capital allocation as factors supporting sustained investor confidence.
In its Q2 2025 earnings report, NXP Semiconductors announced revenue of $2.93 billion, a 6% year-over-year decline, and a non-GAAP EPS of $2.72.
ON Semiconductor (NASDAQ:ON)
While maintaining a Buy rating, Deutsche Bank reduced its target price for ON Semiconductor to $55 from $60 in May, citing temporary weakness in automotive and industrial demand. Despite this adjustment, the bank continues to view ON as a long-term beneficiary of electric vehicle growth and silicon carbide technology adoption. However, analysts cautioned that recent inventory adjustments across automotive suppliers could impact short-term growth prospects.
In a recent development, onsemi announced it has entered into an agreement to acquire rights to Aura Semiconductor’s Vcore power technologies to expand its capabilities in AI data center power management solutions.
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