4 Semiconductor Stocks to Buy as Sales Surge on AI Optimism

Industry Overview - Semiconductor sales have been steadily increasing, driven by enthusiasm for artificial intelligence (AI), particularly generative AI, leading to a surge in revenues across multiple industries [1][3] - The semiconductor industry was a major contributor to last year's stock market rally, indicating its integral role in the broader tech sector [1] Sales Performance - Global semiconductor sales reached $54.9 billion in February, marking a 17.1% increase from $46.9 billion in February 2024 [3] - This represents the 10th consecutive month of over 17% year-over-year growth, although there was a month-over-month decline of 2.9% [4] - The total global semiconductor sales for 2024 are projected to be $627.6 billion, a 19.1% increase from $526.8 billion in 2023 [5] Market Outlook - The semiconductor market is expected to continue expanding, with predictions of double-digit growth in 2025 [6] - A report estimates the global semiconductor market size will reach $627.76 billion by 2025 and $1,207.51 billion by 2034 [7] Key Companies - NVIDIA Corporation: A leading designer of graphic processing units (GPUs) with an expected earnings growth rate of 48% for the current year, currently holding a Zacks Rank 2 [8][9] - RF Industries, Ltd.: Engaged in the design and manufacture of coaxial connectors, with an expected earnings growth rate of over 100% for the current year, holding a Zacks Rank 1 [10][11] - ASML Holding N.V.: A world leader in advanced technology systems for the semiconductor industry, with an expected earnings growth rate of 21.9% for the current year, holding a Zacks Rank 2 [12][13] - Magnachip Semiconductor Corporation: Designs and manufactures analog and mixed-signal semiconductor products, operating through three key segments [14]