JPMorgan is expecting a solid Q3 reporting season for semiconductor companies, driven by AI demand and ongoing cyclical recovery.
The American investment bank, in a note, said it anticipates results to be in line or slightly ahead of expectations, with positive momentum likely to continue into year-end.
“We broadly anticipate companies delivering in-line/slightly better 3Q results while providing constructive commentary on the outlook for 4Q … which in turn we think will provide support for stocks to continue to outperform through the end of this year,” the note said.
Strong AI infrastructure investment remains the sector’s primary growth engine. JPMorgan forecasts 55% year-on-year growth in hyperscaler data centre capex in 2025. DRAM and NAND revenues are projected to grow 36% and 27%, respectively, in 2026.
The bank said companies exposed to high-bandwidth memory, networking, and semiconductor manufacturing complexity are best positioned. Its top picks include Broadcom (NASDAQ:AVGO), Marvell (NASDAQ:MRVL), Nvidia (NASDAQ:NVDA), Analog Devices (NASDAQ:ADI), Micron (NASDAQ:MU), KLA Corp (NASDAQ:KLAC), and Synopsys (NASDAQ:SNPS).