Deutsche’s Chip Picks for 2025

Deutsche’s Chip Picks for 2025

Deutsche Bank has predicted that two major trends will shape the semiconductors space next year, Seeking Alpha reported: “broad-based” companies may see growth, and artificial intelligence (AI) should remain a tailwind. For broad-based plays, it highlights NXP Semiconductors [NXPI] and ON Semiconductor [ON]. On the AI front, while Nvidia [NVDA] and Advanced Micro Devices [AMD] have dominated in 2024, Deutsche Bank favors Broadcom [AVGO] and Marvell Technology [MRVL], which, among other factors, benefit from hyperscaler spending.

Ad Revenue Tops $1trn 

Global advertising revenue is set to exceed $1trn in 2024, according to media agency GroupM, led by Alphabet’s [GOOGL] Google, Meta [META], ByteDance, Amazon [AMZN] and Alibaba [BABA], which are together expected to capture over 50% of the market. Despite challenges in the US and UK, the market will grow 9.5% in 2024 and 7.7% in 2025, favoring digital ad sellers. This highlights a major digital shift in advertising growth, the Financial Times reported. 

Trump Calls in Big Tech on Illegal Drugs 

President-elect Donald Trump’s transition team has invited tech giants Meta, Google, Microsoft [MSFT], Snap [SNAP] and TikTok to discuss combating online drug sales, according to a report by The Information. The outreach, attributed to James Carroll, former director of the Office of National Drug Control Policy, seeks collaboration with these platforms as part of the administration’s efforts. Trump has pledged to crack down on illegal fentanyl imports.

Ma: AI is Ant’s Future

Jack Ma, co-founder of Ant Group and Alibaba, made a rare public appearance during Ant Group’s 20th anniversary celebration, Bloomberg reported. In his speech, Ma discussed Ant’s future, emphasizing opportunities in AI over the next 20 years. His appearance signals a cautious re-engagement with the public spotlight following years of regulatory scrutiny. Last month, OPTO outlined both a bull and bear case for BABA stock, comparing it to top rival JD.com [JD].

Google Pushes Back on CFPB Probe

The Consumer Financial Protection Bureau (CFPB) has asserted supervisory authority over Alphabet’s Google Payment, citing “reasonable cause” for consumer risk concerns. The agency highlighted Google’s handling of disputed transactions and fraud prevention as areas of focus. In response, Google immediately sued the CFPB, alleging it acted “in excess of statutory authority”, relying on “33 cherry-picked complaints” tied to a discontinued peer-to-peer payments service. 

ByteDance Takes the Lead on AI in China

ByteDance, owner of TikTok, is emerging as a frontrunner in the AI race in China. The company has become Nvidia’s largest Chinese customer, boosting its AI capabilities by hiring talent from local rivals like Alibaba and start-ups like 01.ai. ByteDance is also expanding its teams to focus on large language models and AI products. Meanwhile, TikTok’s legal battle against a US law mandating its ban or sale by 2025 suffered a setback as a federal appeals court upheld the legislation; the social media firm plans to escalate the case to the Supreme Court.

Why Did Ken Griffin Triple His Nvidia Stake in Q3?

Griffin, founder and CEO of Citadel, the world’s most successful hedge fund, sold most of his Palantir [PLTR] stake in Q3, while almost tripling his position in Nvidia. He also bought more Intel [INTC] stock, signalling his bullish stance on the beleaguered semiconductor firm, and entered a new position in California-based biotech Summit Therapeutics [SMMT]. OPTO examines the investor’s Q3 13F filing to get a feel for his current view of the market.