Q4 2024: Navigating the Digital and Analog Semiconductor Industry Landscape

Semiconductor stocks stay steadily undervalued, while analog stocks stay discounted.

As of January 12, the median semiconductor stock is 13% undervalued while the median analog stock is 26% undervalued. Still, digital stocks continue to be fairly valued since the previous quarter.

Morningstar’s latest Digital and Analog Semiconductor Industry report highlights the demand for artificial intelligence (AI) and accelerators —a shift particularly led by Nvidia’s data center graphics processing units (GPUs), which is expected to continue in 2025 and beyond. Explore our analysts’ predictions based on the AI GPU market, as well as the downturn of industrial chip demand with consideration to weakening global macroeconomic factors, and the stalled electric vehicle (EV) semiconductor sector.

Download the report now to learn more about key trends in this evolving industry.