Nvidia, Broadcom, Marvell among Oppenheimer's top chip picks ahead of earnings season
Apr. 15, 2025 11:08 AM ET
By: Chris Ciaccia, SA News Editor
Ahead of earnings season, Oppenheimer reiterated that Nvidia (NASDAQ: NVDA), Broadcom (NASDAQ: AVGO), Marvell (NASDAQ: MRVL) and Monolithic Power Systems (NASDAQ: MPWR) are its top picks in the semiconductor space.
“Against a noisy macro/tariff backdrop, we view AI as the best/safest growth vector,” analyst Rick Schafer wrote in a note to clients. “Upside results likely for most as companies benefit from tariff-induced pull-ins. We expect [management] outlooks to be tempered by trade war uncertainties and general lack of visibility. We see limited direct impact to AI spend at least near term.”
Delving deeper, Schafer said the expectations are that Nvidia will sell the equivalent of around 40,000 NVL72 units in the quarter, despite a “slower” start to the period, as cloud service provider capex is still expected to rise 40% in 2025.
And even though semiconductors are (mostly) exempt from the Trump administration's tariffs, there is talk of industry-specific tariffs still coming down the pipe, which could have negative implications.
“We see tariff-related price hikes most acutely impacting end-demand for consumer products like PCs/ smartphones,” Schafer added.
In conjunction with the recent market volatility, Schafer lowered his price targets on Analog Devices ( ADI), Marvell, Monolithic Power, NXP Semiconductors ( NXPI) and Veeco Instruments ( VECO) to “reflect multiple compression.” |
