Investing.com –BofA Securities upgraded Ambarella Inc (NASDAQ:) from ‘underperform’ to ‘neutral’, with the price target raised from $65 to $80, reflecting expected growth acceleration. Advanced energy Industries Inc (NASDAQ:) was also upgraded from ‘neutral’ to ‘buy’, with a new price target of $140, reflecting operating leverage.
While Microchip Technology Inc (NASDAQ:) was downgraded from neutral to underperform, with its price target lowered from $80 to $65, as analysts see limited catalysts for near-term growth.
By 2025, BofA predicts 15% growth in the semiconductor industry, with core semiconductors excluding memory rising 13%.
Analysts pointed to strong momentum in AI semiconductors during the first half of the year, driven by Nvidia (NASDAQ:) deployments, but expect a shift to automotive and industrial chipmakers in the second half due to inventory normalization.
Top picks for 2025 include Nvidia, Broadcom (NASDAQ:), Marvell (NASDAQ:) Technology and Lam Research (NASDAQ:). These stocks are poised to benefit from AI trends and a potential recovery in capital spending and cyclical markets.
The BofA noted the risks posed by restrictions in China and macroeconomic uncertainties, but maintains a positive long-term outlook for semiconductor industry growth.
