Nucor earnings beat by $0.08, revenue fell short of estimates
Investing.com-- The global semiconductor market is set to grow nearly 10% in 2025, driven by strong demand for artificial intelligence and data center chips, while traditional segments such as smartphones and automotive are expected to lag, ING analysts said in a note.
The forecast of 9.5% growth is below the 11.2% estimate from the World Semiconductor Trade Statistics (WSTS) but exceeds the long-term industry growth rate projected by ASML (AS:ASML), ING noted.
While AI-driven demand is fueling the market, segments like PCs, mobile devices, and traditional automotive semiconductors face headwinds from price pressure and slowing consumer demand, analysts wrote.
NVIDIA Corporation (NASDAQ:NVDA) remains a key player in AI chips, but its latest earnings were poorly received, and Samsung Electronics (KS:005930) has cut its AI semiconductor outlook, analysts said.
Meanwhile, Advanced Micro Devices Inc (NASDAQ:AMD) had reported $5 billion in AI chip revenue for 2024 and expects “strong double-digit growth” in 2025.
Taiwan Semiconductor Manufacturing Co (TW:2330) forecasted a mid-40% compound annual growth rate for AI accelerators over five years, well above its overall revenue growth expectations, analysts noted.
ING also highlighted a growing trend toward custom chips (ASICs) for data centers, which could benefit Broadcom Inc (NASDAQ:AVGO) and Marvell Technology (NASDAQ:MRVL) while posing a competitive challenge to Intel (NASDAQ:INTC) and AMD.
Despite near-term caution on memory chip prices, ING sees solid demand for high-bandwidth memory and leading-edge logic chips, positioning the industry for sustained long-term growth.