AI, Edge Tech, and What’s Next for Semiconductor Stocks
The buzz at this year’s Consumer Electronics Show (CES) was palpable, and Susquehanna’s analysts had some fascinating takeaways after meeting with top semiconductor companies. AI, Edge IoT, and next-gen connectivity were hot topics, setting the stage for what’s to come in 2025. Here’s what you need to know 👇🏼
AI at the Edge and Next-Gen Tech
From AI hardware to auto and power dynamics, companies showcased innovations driving the future. Analysts spotlighted players like Nvidia (NVDA) and Marvell Technology (MRVL) in next-gen AI hardware, while Synaptics (SYNA) and Ambarella (AMBA) shone in AI at the Edge. Meanwhile, connectivity champs like Credo Technology (CRDO) and MaxLinear (MXL) made waves in the AI/connectivity space.
Key Stock Updates from the Show
Ambarella (AMBA)
AMBA’s CFO highlighted the N1-655 Edge GenAI system-on-chip, a game-changer for edge AI. With excitement building around its CV7 and CV3 portfolios, Susquehanna bumped the price target to $95 (from $85) while maintaining a Positive rating.Marvell Technology (MRVL)
The talk around Marvell was electric—literally. From breakthroughs in Co-Packaged Optics to major advancements in digital signal processors (DSPs), Marvell is doubling down on innovation. The firm upped the price target to $140 (from $125) and kept a Positive outlook.MaxLinear (MXL)
While maintaining a Neutral rating, Susquehanna raised MXL’s price target to $20 (from $15). The company’s PAM4 DSP portfolio is gaining traction among hyperscalers and systems vendors, potentially doubling DSP revenue in 2024.ON Semiconductor (ON)
Not all news was rosy—ON Semiconductor is grappling with cyclical weaknesses and pricing pressures. Susquehanna trimmed the price target to $80 (from $95) but remains optimistic about long-term opportunities.Semtech (SMTC)
Semtech is turning heads with its Linear Equalizer solutions, which are expected to make waves in servers by late 2025. Susquehanna raised the price target to $80 (from $70) and reiterated a Positive rating.
Big Picture:
While the market environment remains mixed, CES 2025 revealed that AI and connectivity are set to dominate the tech landscape. From bold innovations to cautious optimism, it’s clear that the semiconductor space is heating up.
What are your thoughts on these trends? Are you keeping an eye on any of these stocks? Let us know!
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