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Investing.com -- Raymond James has resumed coverage of seven major semiconductor companies, arguing that generative artificial intelligence has “transformed a typically cyclical market sector of semiconductors into a secular boom.”
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In a note, analyst Simon Leopold wrote that enterprises remain in the “early stages of adoption,” while AI factory builders plan to accelerate investments and build ever-larger operations.
The brokerage said its full-stack data infrastructure coverage highlights rapid advances in form factors and packaging, with “differentiation spanning compute, networking, storage, optics and infrastructure software.”
Raymond James also flagged power supply bottlenecks and said innovations such as “co-packaged optics” and “CoWoS / Chip on Wafer on Substrate” will be essential to scaling high-performance clusters.
The analysts resumed coverage of NVIDIA (Strong Buy), Marvell (Strong Buy), Broadcom (Outperform), AMD (Outperform), ARM (Market Perform), Astera Labs (Market Perform) and Intel (Market Perform), calling semiconductors “foundational elements” in what they describe as “an unprecedented structural shift in the technology landscape.”
Raymond James said NVIDIA “leads in AI and is a core holding,” citing its software stack, developer ecosystem and “full-stack systems approach.”
The firm expects “continued upward estimate revisions” and models peak Blackwell orders at 7.8 million units in fiscal 2027.
Marvell “faces more skepticism,” but the analysts see it as a “share gainer” in custom ASICs and optical DSPs, with management targeting roughly 20% data-centre ASIC share by 2028.
Broadcom was described as “a share gainer in the AI complex,” while AMD is “best positioned to compete with NVIDIA” in merchant GPUs. ARM’s data-centre traction and Astera Labs’ “first-mover advantage” in high-speed interconnects were also highlighted.
On Intel, Raymond James said execution must “catch up,” adding that its loss-making foundry business “remains an albatross.”