Industry Overview - The semiconductor market has experienced steady growth in 2025, driven by optimism surrounding artificial intelligence and demand from various industries [1][6] - Global semiconductor sales reached $62.1 billion in July 2025, marking a 20.6% year-over-year increase and a 3.6% increase from June [3][8] - The semiconductor industry saw revenues of $627.6 billion in 2024, up 19.1% from $526.8 billion in 2023, indicating strong momentum [6] Sales Performance - Semiconductor sales in July 2025 were significantly boosted by demand for data center chips and memory products [8] - The second quarter of 2025 also showed robust performance, with sales totaling $179.7 billion, a 7.8% increase from the previous quarter [4] Company Highlights - Advanced Micro Devices (AMD) has transitioned from a consumer-PC chip provider to an enterprise-focused company, emerging as a strong competitor to NVIDIA in the GPU market [7] - AMD generated revenues of $22.68 billion in 2023, with an expected earnings growth rate of 20.5% for the current year [9] - NVIDIA Corporation, a leader in visual computing technologies, has shifted its focus to AI-based solutions, with an expected earnings growth rate of 48.5% for the current year [10][11] - Advanced Energy Industries, Inc. (AEIS) specializes in power subsystems for the semiconductor industry, with an expected earnings growth rate of 53.1% for the current year [12][13] Investment Opportunities - Semiconductor stocks such as AMD, NVIDIA, and AEIS are recommended for investment, with each carrying a Zacks Rank of 1 (Strong Buy) or 2 (Buy) [2][8]

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies and confidence [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - Stocks are rated based on value, growth, and momentum characteristics, with scores ranging from A to F, where A indicates the highest potential for outperformance [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5][6] Value Score - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - The Growth Score assesses a company's financial health and future growth potential by analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Score identifies optimal entry points for stocks based on price trends and earnings estimate changes [5] VGM Score - The VGM Score combines all three Style Scores to highlight stocks with the best value, growth prospects, and momentum [6] Zacks Rank Integration - The Zacks Rank utilizes earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988 [7][8] - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [9] Earnings Estimate Revisions - The direction of earnings estimate revisions is crucial when selecting stocks, as stocks with lower ranks but high Style Scores may still face price declines [10] Company Spotlight: Nvidia (NVDA) - Nvidia is a leader in visual computing technologies and has shifted its focus to AI-based solutions, supporting high-performance computing, gaming, and virtual reality [11] - Nvidia holds a Zacks Rank of 2 (Buy) and a VGM Score of B, with a Growth Style Score of B indicating a projected year-over-year earnings growth of 47.5% for the current fiscal year [12] - Recent upward revisions by 15 analysts for fiscal 2026 have increased the Zacks Consensus Estimate to $4.41 per share, with an average earnings surprise of 7.9% [12]

There is one name synonymous with the artificial intelligence (AI) revolution in the computer and technology sector. NVIDIA Corp. NASDAQ: NVDA commands over 92% of the graphic processing unit (GPU) market, making it the leading company benefiting from the surge in AI infrastructure demand. Their AI chips are in such demand that their next-generation Blackwell GPUs are already sold out for the next 12 months. They are essential tools for cutting-edge AI, machine learning (ML) and high-performance computing ( ...

Wall Street has been on a wild ride in recent weeks, witnessing the wipeout of a staggering $3.5 trillion from the market capitalization in 14 days. According to CompaniesMarketCap data, the total market capitalization of U.S. stocks plunged from $62.2 trillion as of Feb. 19 to $58.7 trillion as of March 7. The loss amount is greater than the GDP of the United Kingdom and roughly equal to Apple’s market value or the combined worth of Meta, Tesla and Netflix. The S&P 500 wrapped up the worst week since Septe ...