The global semiconductor industry is set to expand by 9.5% in 2025, driven by AI and data center chip demand, according to ING analysts. While this forecast trails the 11.2% projection from the World Semiconductor Trade Statistics (WSTS), it still exceeds the long-term growth outlook provided by ASML (AS:ASML).
Key Drivers of Semiconductor Growth
1. AI and Data Center Demand
NVIDIA Corporation (NASDAQ:NVDA) remains a dominant player in the AI chip space, though recent earnings disappointed investors.
Advanced Micro Devices Inc (NASDAQ:AMD) reported $5 billion in AI chip revenue for 2024 and expects strong double-digit growth in 2025.
Taiwan Semiconductor Manufacturing Co (TW:2330) predicts a mid-40% CAGR for AI accelerators over the next five years, well above its overall growth outlook.
2. Custom Chip (ASIC) Momentum
The rising demand for application-specific integrated circuits (ASICs) in data centers is expected to benefit companies like:
Broadcom Inc (NASDAQ:AVGO)
Marvell Technology (NASDAQ:MRVL)
This shift may pose a competitive threat to traditional chipmakers such as Intel (NASDAQ:INTC) and AMD.
3. Memory and Logic Chip Growth
While ING expects near-term caution regarding memory chip prices, demand for high-bandwidth memory (HBM) and leading-edge logic chips remains robust.
Lagging Segments in 2025
Smartphones, PCs, and automotive chips face headwinds from price pressure and slowing consumer demand.
Samsung Electronics (KS:005930) has already revised its AI semiconductor outlook downward.
Market Outlook and Investment Insights
AI infrastructure and data centers continue to drive semiconductor innovation and revenue growth.
Investors may see opportunities in AI-centric players like NVIDIA, AMD, and TSMC, while companies capitalizing on custom chip demand, such as Broadcom and Marvell, are also well-positioned.
For investors seeking detailed financial metrics, valuation insights, and revenue growth projections for leading semiconductor companies, the Company Valuation API can provide key data to support informed decision-making.
