Semiconductor cos to likely posts earnings beat, says Oppenheimer as it bumps PT

Published 15/07/2025, 16:52
© Reuters

Investing.com -- Oppenheimer expects most major semiconductor companies to beat expectations this earnings season, driven by a sharp ramp-up in AI infrastructure investment and recovering demand in industrial and automotive markets.

Despite strong recent gains, SOX is up 13% year-to-date and 58% since April, Oppenheimer remains bullish, highlighting long-term structural growth.

It raised price targets for stocks like Nvidia (NASDAQ:NVDA) by $25 to $200. Broadcom (NASDAQ:AVGO) was raised to $305 from $265, and reiterated its preference for stocks with sustained exposure to AI and custom silicon.

Top picks include Nvidia, Broadcom, Marvell (NASDAQ:MRVL), and Monolithic Power Systems Inc (NASDAQ:MPWR).

The brokerage sees hyperscalers scaling up AI data centers at an unprecedented pace, deploying more than 1,000 Nvidia NVL72 racks each week in the second quarter.

Capital spending by the top four cloud providers is tracking over 40% higher year-over-year, fueling demand for GPUs, custom accelerators, and high-speed networking.

Data center AI remains the industry’s biggest growth driver. Nvidia’s Blackwell platform is ramping ahead of an expected GB300 launch in Q3, with Oppenheimer estimating more than 40,000 NVL72 racks to be deployed this year.

Custom AI chips from Broadcom, Marvell, and AMD (NASDAQ:AMD) are also gaining traction, while power and cooling demands continue to rise with racks nearing 1 megawatt.

Beyond AI, a cyclical recovery in autos and industrials is beginning to materialize. Semiconductor content per vehicle is growing more than 10% annually, with firms like NXP (NASDAQ:NXPI) and Texas Instruments (NASDAQ:TXN) positioned to benefit from rising demand in electric vehicles and ADAS.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.