Not just NVIDIA Corporation (NVDA.US)! Barclays is optimistic about these companies leading the AI chip industry in 2025.

Barclays PLC Sponsored ADR predicts that by 2025, Marvell Technology, Inc. and NVIDIA Corporation will become the leaders in the artificial intelligence semiconductor industry. Broadcom Inc., Credo Technology, and the undervalued Lumentum Holdings are also seen as promising. Analyst Tom O'Malley of Barclays stated, "NVIDIA Corporation's GPU sales are expected to reach nearly $100 billion in 2024 and are projected to grow to around $160 billion in 2025." "Custom chips are just starting to become increasingly important and are expected to grow at a faster compound growth rate (55%) over the next 3 years. We believe the AI TAM (Total Addressable Market) is large enough to support these companies through 2026." Barclays has raised the target stock price of Broadcom Inc. from $205 to $260; raised the target stock price of Marvell Technology, Inc. from $115 to $150; and upgraded Lumentum's rating from "hold" to "buy" with a target price of $125. O'Malley noted, "We are skeptical about whether Lumentum Holdings can expand its module business to over $10 billion, but the increase in the number of ports, along with a strong desire to use the American supply chain, has propelled mega-scale manufacturers to qualify at an astonishing rate." While NVIDIA Corporation is the clear leader in the artificial intelligence semiconductor field, high demand should open doors for other semiconductor companies. O'Malley stated, "We never underestimate NVIDIA Corporation's leading position in the commercial and high-end artificial intelligence computing market, but customers continue to demand second-source options and more cost-effective ways to provide latency-intensive AI inference services to billions of potential users." "We believe this shift will translate to around $21 billion in custom chip flows to Broadcom Inc. in the 2026 fiscal year, and nearly $4 billion in ASIC flows to Marvell Technology, Inc. by the 2026 fiscal year. We expect that by the end of this decade, this shift will expand to support the total asset size of $10 billion that we have identified."