The semiconductor industry, which is characterized by its cyclical nature, is once again on the verge of an uptrend, driven by the artificial intelligence (AI) revolution. AI is experiencing a massive surge of use cases in finance, automotive, healthcare, manufacturing, advertising technology, agriculture, cybersecurity and even semiconductor designing.

Semiconductor chips like high-performance graphics processing units, tensor processing units, neural processing units, and application-specific ICs are used for speeding up the training process of deep learning, machine learning (ML), and other AI-based tasks requiring large-data processing. These factors have contributed to a huge market opportunity for companies like Marvell Technology MRVL, Amtech Systems ASYS, NVIDIA NVDA and Taiwan Semiconductor Manufacturing Company TSM, which produce these high-performance semiconductor products.

AI applications depend on vast databases capable of delivering large volumes of information rapidly, making them highly reliant on data center services. Microchips, including high-bandwidth memory, non-volatile memory and low-power double data rate chips designed for storing and deploying large amounts of data, are also experiencing huge traction due to the AI boom.

The AI and ML boom has pushed the sales of storage and data-processing semiconductor chips up, and a report by the Semiconductor Industry Association suggests the same. Per the report, the global semiconductor market is demonstrating signs of strong growth, with a 17.9% year-over-year rise in sales in January 2025, reaching $56.5 billion during the month. This marked the ninth consecutive months of more than 17% year-over-year growth for semiconductor sales.

The momentum in semiconductor sales is forecasted to continue throughout 2025. Per a report by MarketsAndMarkets, the global semiconductor market size is estimated to reach $707 billion in 2025, reflecting a year-over-year increase of 12.5%.

Invest in Semiconductor Stocks

Considering the growth potential, it is an ideal time for investors to invest in the semiconductor space and maximize their returns. The aforementioned stocks — NVIDIA, Marvell Technology, Taiwan Semiconductor, and Amtech Systems — are anticipated to benefit from this trend.

These semiconductor stocks have a favorable combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy). The Growth Style Score condenses all the essential metrics from a company’s financial statements to get a true sense of the quality and sustainability of its growth. Per Zacks’ proprietary methodology, stocks with a combination of a Zacks Rank #1 or 2 and a Growth Score of A or B offer solid investment opportunities.

4 Semiconductor Stocks to Benefit From the AI Boom

Marvell Technology provides a large range of solutions to data centers. Its offerings, like pulse amplitude modulation (PAM) chips, digital signal processors, trans-impedance amplifiers, silicon photonics, laser drivers and other data center interconnect solutions, accelerate data center communication.

Marvell’s networking solutions, like PAM products and ZR electro-optics, are gaining traction as data centers are becoming increasingly fundamental for AI due to the massive computing power, storage, and networking capabilities required to train and deploy AI models efficiently. The continued growth in demand for Marvell’s products due to continued AI advancements makes this Zacks Rank #1 stock attractive. You can see the complete list of today’s Zacks #1 Rank stocks here.

The stock has a Growth Score of A. The Zacks Consensus Estimate for MRVL’s fiscal 2026 EPS has moved up by 2 cents to $2.71 over the past 60 days. The long-term expected EPS growth rate is currently pegged at 42.9%.

Marvell Technology, Inc. Price and Consensus

Marvell Technology, Inc. price-consensus-chart | Marvell Technology, Inc. Quote

Amtech Systems is one of those companies that form the backbone of the semiconductor industry. The company manufactures specialized equipment used by semiconductor manufacturing companies and foundries.

Amtech’s horizontal diffusion furnaces, double-sided wafer cleaning systems and continuous thermal processing systems are extensively used by manufacturers of semiconductor substrates, devices and electronic assemblies. The rise in demand for advanced semiconductors will compel fabrication companies to expand their facilities, driving demand for ASYS’ products.

Amtech sports Zacks Rank #1 and has a Growth Score of A at present. The Zacks Consensus Estimate for ASYS’ fiscal 2025 EPS has moved up by 2 cents to 17 cents over the past 60 days.

Amtech Systems, Inc. Price and Consensus

Amtech Systems, Inc. price-consensus-chart | Amtech Systems, Inc. Quote

NVIDIA, being the pioneer of graphic processing units (GPU), is now leading the AI space with its GPUs based on Hopper and Blackwell architectures. The Hopper architecture uses tensor cores to speed up Matrix operations that form the fundamentals of deep learning models. Blackwell architecture improves on the Hopper and claims to run generative AI on trillion-parameter LLMs, taking one-fourth of the cost and energy compared to Hopper.

NVIDIA is gaining from AI adoption spreading beyond cloud hyperscalers, with industries such as healthcare, automotive, and robotics increasingly investing in AI-powered solutions. Major companies across industries are integrating NVIDIA’s AI platforms to automate workflows, enhance productivity and improve decision-making.

NVIDIA carries a Zacks Rank #2 and has a Growth Score of A. The Zacks Consensus Estimate for NVDA’s fiscal 2026 EPS has moved up by 18 cents to $4.39 over the past 30 days. The long-term expected EPS growth rate is currently pegged at 25.7%.

NVIDIA Corporation Price and Consensus

NVIDIA Corporation price-consensus-chart | NVIDIA Corporation Quote

Taiwan Semiconductor stands at the epicenter of the artificial intelligence (AI) revolution, supplying the cutting-edge chips that power AI workloads and high-performance computing (HPC). As demand for storage and processing microchips grows, fabless companies like NVIDIA and Marvell will deepen their collaboration with Taiwan Semiconductor to leverage its advanced fabrication facilities.

As one of the largest foundries in the world, TSM manufactures integrated chips for its clients based on their proprietary designs. Additionally, TSM’s fabrication facilities support 5nm and 3nm process technologies and their sub-nodes that are crucial for manufacturing AI chips. Its capability to manufacture advanced silicon technologies makes the stock worth adding to the portfolio.

Taiwan Semiconductor carries a Zacks Rank #2 and has a Growth Score of B. The Zacks Consensus Estimate for TSM’s fiscal 2025 EPS has moved up by a penny to $9.20 over the past seven days. The long-term expected EPS growth rate is currently pegged at 33.1%.

Taiwan Semiconductor Manufacturing Company Ltd. Price and Consensus

Taiwan Semiconductor Manufacturing Company Ltd. price-consensus-chart | Taiwan Semiconductor Manufacturing Company Ltd. Quote

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