3 Semiconductor Stocks Poised to Surge on AI Spending

Core Viewpoint - The semiconductor industry has experienced significant volatility, driven by the demand for AI infrastructure and data center buildouts, with major companies like NVIDIA, Amazon, and Microsoft leading the charge [1][2]. Group 1: Market Dynamics - The release of China's DeepSeek large language model raised concerns about potential cuts in infrastructure spending by hyperscalers, but first-quarter earnings showed an increase in spending by companies like Amazon and Microsoft [2]. - There are ongoing questions about a potential infrastructure glut, but the current buildout is still in progress, indicating growth opportunities for semiconductor stocks [3]. Group 2: Company Highlights - Marvell Technology: Specializes in application-specific integrated circuits (ASICs) crucial for data center operations, with a focus on high-margin contracts that support AI infrastructure. The stock has risen 23% since its first-quarter earnings report but remains about 30% below the consensus price target of $96.33 [4][5][7]. - Broadcom: Plays a vital role in AI infrastructure by providing connectivity solutions and custom AI accelerators. The stock has recovered to an all-time high after initial declines following earnings, indicating strong market confidence [8][9][10]. - Advanced Micro Devices (AMD): Is positioning itself to capture market share from NVIDIA with its new Instinct MI325X accelerator, which has superior memory capacity. AMD's stock has increased over 24% in the last month, reflecting positive investor sentiment ahead of upcoming earnings [12][13][14].