ZACKSยท2025-03-10 17:15Industry Overview - The semiconductor industry significantly contributed to last year's stock market rally, with demand recovering in 2024 and steadily increasing, primarily driven by enthusiasm for artificial intelligence (AI), especially generative AI [1][2] - Global semiconductor sales reached $56.5 billion in January 2024, marking a 17.9% increase from $47.9 billion in January 2023, although there was a month-over-month decline of 1.7% [4][5] - In 2024, global semiconductor sales soared to $627.6 billion, a 19.1% increase from $526.8 billion in 2023, with the fourth quarter alone seeing a 17.1% year-over-year increase [6] Market Dynamics - The emergence of DeepSeek, a low-cost AI model from China, initially raised concerns about U.S. tech companies' dominance in the AI sector, leading to a decline in semiconductor stocks over the past month [2][5] - Despite the initial fears regarding DeepSeek, investor confidence has gradually returned, restoring optimism in the market [2] Future Outlook - The Semiconductor Industry Association (SIA) forecasts double-digit sales growth in 2025, indicating continued confidence in the industry's upward trajectory [7] Company Highlights Taiwan Semiconductor Manufacturing Company Limited (TSM) - TSM is the world's largest dedicated integrated circuit foundry, aiming to solidify its position as a leading semiconductor company [8] - Expected earnings growth rate for TSM in the current year is 30.7%, with a Zacks Rank of 2 [9] NVIDIA Corporation (NVDA) - NVIDIA is a major player in the semiconductor industry, particularly known for its graphic processing units (GPUs) [10] - Expected earnings growth rate for NVIDIA in the current year is 46.8%, with a Zacks Rank of 2 [11] RF Industries, Ltd. (RFIL) - RF Industries designs and manufactures coaxial connectors for various applications, including radio communications and computers [12] - Expected earnings growth rate for RF Industries in the current year is over 100%, with a Zacks Rank of 2 [12]