3 Semiconductor Stocks to Buy Amid Rising Data Center Demand

Industry Overview - The global data center market is projected to grow from USD 269.79 billion in 2025 to USD 584.86 billion by 2032, reflecting a CAGR of 11.7% driven by increasing data storage and processing needs [2] - Key trends in the data center industry include hyperscale data centers, liquid cooling, edge computing, and a focus on sustainability and energy efficiency [1] Semiconductor Industry Impact - The semiconductor industry is expected to benefit significantly from the increasing data center market, particularly due to the demand for high-performance chips like GPUs and High Bandwidth Memory (HBM) [4][5] - Global semiconductor sales reached $56.5 billion in January 2025, marking a 17.9% increase from $47.9 billion in January 2024, with projections for sales to reach $697 billion in 2025 [7] Company-Specific Insights Credo Technology (CRDO) - Credo Technology is experiencing strong market growth in Ethernet and Active Electrical Cables (AECs) for data centers, with AEC products showing triple-digit sequential growth in Q3 of fiscal 2025 [9] - The Zacks Consensus Estimate for Credo Technology's 2025 earnings is pegged at 63 cents per share, revised upward by 26% over the past 30 days, with a 100.2% increase in stock price over the trailing 12 months [11] Broadcom (AVGO) - Broadcom is capitalizing on investments in AI data centers, launching high-speed networking chips like Sian3 and Sian2M, which enhance power efficiency and connectivity [12][13] - The consensus mark for Broadcom's 2025 earnings is $6.56 per share, which has increased by 3.9% over the past 30 days, with a stock price increase of 29.8% in the trailing 12 months [14] Marvell Technology (MRVL) - Marvell Technology is focusing on high-speed solutions for data centers, including PAM chips and silicon photonics, to meet the growing demand for AI-driven infrastructure [17][18] - The consensus mark for Marvell's fiscal 2026 earnings is $2.76 per share, which has decreased by 1.8% over the past 30 days, with an 8.5% decline in stock price over the trailing 12 months [20]