AI chips to drive semiconductor industry in 2025: VanEck

The global semiconductor industry will see continued demand for AI chips this year, while legacy segments could stabilize after a period of oversupply, a report by exchange-traded fund provider VanEck says.

VanEck believes 2025 is set to be another “transformative year” for the semiconductor industry. 

Nvidia, Broadcom, TSMC and Marvell are well-positioned in the AI semiconductor space, with Nvidia by far the dominant player. 

Besides the big names, VanEck said there is also potential for other firms. 

“While market leaders grab headlines, undervalued players in memory chips and semiconductor equipment offer attractive opportunities for strategic positioning,” VanEck said.

While demand for AI processing is still high, VanEck believes Nvidia’s expansion could slow down from past years. Developers of hyperscale clouds such as Amazon and Google are creating AI chips, and we could see their impact starting to play out. 

“As we move through 2025, staying informed and adaptable will be key to capitalizing on the opportunities this pivotal industry presents. The semiconductor story is far from over — and this year may be one of its most exciting chapters yet,” VanEck said.

If demand for driver-assistance systems develops and EV usage expands, automotive semiconductor demand may rise. But demand for smartphone chips could take more time to revive.

On the whole, artificial intelligence will be a primary driver for the semiconductor sector in 2025 as long as cyclical risks and competitiveness shape the market, the report said.