Investment Updates from BofA Securities
Ambarella Inc (NASDAQ:AMBA) has been upgraded from underperform to neutral, with a new price target of $80, up from $65, due to anticipated growth acceleration.
Advanced Energy Industries Inc (NASDAQ:AEIS) received an upgrade from neutral to buy, with a revised target price of $140, indicating increased operational leverage.
In contrast, Microchip Technology Inc (NASDAQ:MCHP) was downgraded from neutral to underperform, lowering its target price from $80 to $65 as analysts foresee limited near-term growth catalysts.
For 2025, BofA predicts a 15% growth in the semiconductor industry, with core semiconductors (excluding memory) increasing by 13%. Strong momentum in AI semiconductors was observed in the first half of the year, largely driven by Nvidia (NASDAQ:NVDA) deployments. However, analysts forecast a shift towards auto and industrial chipmakers in the latter half due to inventory normalization.
Top stock picks for 2025 include Nvidia, Broadcom (NASDAQ:AVGO), Marvell (NASDAQ:MRVL) Technology, and Lam Research (NASDAQ:LRCX), which are positioned to capitalize on AI trends and a potential recovery in capital expenditures and cyclical markets.
While BofA acknowledges risks stemming from China restrictions and macroeconomic uncertainties, it maintains a positive long-term outlook for semiconductor growth.
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