Which semiconductor players are poised for big wins in 2025?

What’s happening in the semiconductor world? Let’s break it down.

2025 is shaping up to be a big year for semicon, from AI breakthroughs to memory market rebounds.

1. AI Is the Star of the Show
   AI is still the golden child of the tech world, and semiconductors are riding that wave.
   
   Companies like Nvidia, AMD, Broadcom, and Marvell are cashing in big time.
   
   For example, Broadcom expects its AI-related revenue to jump by a whopping 65% in 1Q2025, with a market potential of US$60-90 billion by 2027.
   
   Marvell is also killing it with custom AI chips, guiding for US$1.8 billion revenue for Q4 FY25 (ending Jan 2025) against expectations of US$1.64 billion.
   
   
2. Chip-Making Equipment Is in Demand
   The machines that make chips (called wafer fab equipment or WFE) are getting more attention.
   
   Spending on these is expected to grow by over 6% in both 2025 and 2026.
   
   But there’s a catch—US-China trade tensions could throw a wrench in the works. DBS prefers companies like ASML and Lam Research in this space.
   
   
3. Microcontrollers Are Struggling
   Not all parts of the chip world are thriving.
   
   Microcontrollers (MCUs), which are used in things like cars and industrial machines, aren’t doing so hot.
   
   Companies like Infineon and Renesas have been hit hard by weak demand, and it doesn’t look like things will turn around anytime soon.