03:10 PM EST, 01/15/2025 (MT Newswires) -- Broadcom ( AVGO ) , Monolithic Power Systems ( MPWR ) , Marvell Technology ( MRVL ) , and Nvidia ( NVDA ) were named the top picks in the semiconductor sector for 2025 by Oppenheimer.

Oppenheimer analysts are "stock-selective, favoring structural growth for through-cycle outperformance," the firm said in a Wednesday note, ahead of the sector's earnings reporting season that kicks off next week.

The four stocks "levered to AI [and] outperformed the SOX by 5x on average," Oppenheimer said, referring to the Philadelphia Semiconductor Index, which tracks the performance of semiconductor stocks. The SOX index gained 19% last year, led by AI-related stocks, according to the firm.

"We see [2025] as more of the same" amid rising capital expenditures of cloud service providers, while businesses capitalize on AI investments, Oppenheimer analysts said.

Nvidia ( NVDA ) is seen as still "uniquely positioned as the dominant AI [hardware/software] pure-play," according to Oppenheimer. "AI trends remain a tailwind for top networking suppliers and custom ASIC designers MRVL/AVGO as well as lead 48V power vendor MPWR," the analysts added.

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