2 no-brainer semiconductor stocks to buy for 2025 and beyond

Industry Overview - The semiconductor industry experienced a strong recovery in 2024, driven by increasing demand across various sectors and the rapid adoption of artificial intelligence [1] - Global semiconductor sales are projected to reach $705 billion in 2025, with ongoing infrastructure investments [2] Nvidia - Nvidia is highlighted as a strong investment opportunity for 2025, holding over 90$125 on February 5, due to competition concerns and trade tensions [4] - Major clients like Alphabet, Microsoft, and Meta Platforms are significantly increasing their capital expenditures, which supports sustained demand for Nvidia's high-performance computing solutions [5][6] - Nvidia is involved in the $500 billion Stargate AI infrastructure project, which is expected to bolster its market position [6] Broadcom - Broadcom is positioned to benefit from rising AI infrastructure spending, generating$12.2 billion in AI hardware revenue in fiscal 2024, a 220% year-over-year increase [8] - AI-related sales now constitute 24% of Broadcom's total revenue, with projections of AI chip revenue between $60 billion and$90 billion by 2027 [9] - Broadcom's stock was trading at $232 as of February 5, reflecting an 89% increase over the past year, despite a previous 17% slump due to concerns over AI development becoming less hardware-intensive [10] - Renewed confidence in AI infrastructure spending has led to a rebound in Broadcom's stock, with a 4% increase following Alphabet's earnings report [11] Long-term Outlook - Despite short-term volatility caused by DeepSeek's AI model, the long-term outlook for semiconductor stocks remains positive, with increasing demand for high-performance computing [12] - Both Nvidia and Broadcom are well-positioned to capitalize on the growing momentum in the semiconductor industry, making them attractive investment options for 2025 and beyond [12]