Not only NVIDIA Corporation (NVDA.US)! Barclays is bullish on these companies leading the AI chip industry in 2025.

Barclays PLC Sponsored ADR predicts that by 2025, Marvell Technology, Inc. (MRVL.US) and NVIDIA Corporation (NVDA.US) will become leaders in the artificial intelligence semiconductor industry. Broadcom Inc. (AVGO.US), Credo Technology (CRDO.US), and the undervalued Lumentum Holdings (LITE.US) are also viewed favorably. Analysts at Barclays, led by Tom O'Malley, stated, "NVIDIA Corporation GPU sales are expected to reach nearly $100 billion in 2024, and are projected to increase to around $160 billion by 2025." "Custom chips are just starting to become increasingly important, and are expected to grow at a faster compound growth rate in the next 3 years (55%). We believe that the scale of the AI TAM is sufficient to support these companies through 2026." Barclays has raised Broadcom Inc.'s target price from $205 to $260; Marvell Technology, Inc.'s target price 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 Lumentum Holdings' ability to expand its module business to over $10 billion, but the increase in the number of ports, along with a strong desire to use the U.S. supply chain, has accelerated the qualification for mega-scale manufacturers at an astonishing pace." While NVIDIA Corporation is a clear leader in the artificial intelligence semiconductor field, high demand should open doors for other semiconductor companies. O'Malley said, "We do not 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 delay-intensive artificial intelligence reasoning services to billions of potential users." "We believe that this shift will approximately $21 billion in custom chips flowing to Broadcom Inc. in FY 2026, and nearly $4 billion for Marvell Technology, Inc. in FY 2026. We expect that by the end of this decade, this shift will expand to support our identified $10 billion total asset scale."