10 High Growth Semiconductor Stocks That Are Profitable Heading into 2025

1) NVIDIA Corporation (NASDAQ:NVDA)

5-year Sales Growth: ~62.43%

TTM net income: $63,074 Million

Number of Hedge Fund Holders: 193

NVIDIA Corporation (NASDAQ:NVDA) is a renowned player in the semiconductor business and is known for innovative GPUs and expanding portfolio of products for AI, gaming, and data centers. As per Barclays analyst Tom O’Malley, NVIDIA Corporation (NASDAQ:NVDA) GPU sales touched ~$100 billion in calendar 2024 and are projected to grow to ~$160 billion in calendar 2025. The analyst further added that custom silicon has just started to become more significant and is expected to grow at a faster compounded rate over the upcoming 3 years (at 55%).

Considering the ongoing focus on the AI compute end-market, the analyst remains optimistic about NVIDIA Corporation (NASDAQ:NVDA)’s growth prospects. For calendar 2025, the analyst anticipates the company to grow its data-center compute business by ~60% YoY. Therefore, Tom O’Malley reiterated an “Overweight” rating and upped his price target to $175 from $160 on the company’s shares.

Furthermore, NVIDIA Corporation (NASDAQ:NVDA)’s strong position in the AI computing market offers a strong foundation for continued growth. Its comprehensive technology stack, which includes hardware and software solutions, provides a significant advantage in catering to the growing demand for AI infrastructure. Infuse Asset Management, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:

“We do still own some NVIDIA Corporation (NASDAQ:NVDA) as the forward multiple isn’t egregious and it powers over 90% of AI workloads. This company is only becoming increasingly important though the hyperscalers are actively trying to save money through their own ASIC programs. The moat CUDA provides has been underestimated time and time again. While I don’t think Nvidia has quite the upside as some of the other companies in the portfolio, it has a product that the best companies in the world literally can’t get enough of.”

While we acknowledge the potential of NVDA as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

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