Global Semiconductor 2025 Outlook: Carrying Over Momentum From 2024

Our positive 2025 outlook for the global semiconductor industry reflects our view that both fabless firms and manufacturers of advanced node chips should continue to benefit from increased demand that will translate into higher revenues and better margins.

Key highlights include the following:
-- The semiconductor industry is set to further expand in 2025 off the back of data centre demands and increased adoption of artificial intelligence.
-- Geopolitical risks remain a key decider in supply and demand curves.
-- Fabless firms like Nvidia will reflect strong performances helped by exponentially growing computing demand.

"Overall, growing revenues, EBITDA margins, and cash flow generation, coupled with higher capex and stable shareholder rewards should lead to improved credit risk profiles," said Vineet Khattar, Vice President, Corporate Finance, Diversified Industries. "All that said, we note geopolitical risks and ESG challenges for the sector."