Happy Tuesday! Undervalued chip stocks like AMD and Micron are set for potential breakouts in 2025 as analysts predict significant upside. Here’s why these overlooked names could drive the next semiconductor rally. Also, take a look at how a more cautious Fed policy make affect your investments.

—Josh Enomoto

Plus, if you’re interested in opportunities in the cosmetic healthcare space, check out today’s sponsor.

MARKET RECAP

Yesterday: Tech and communication stocks lifted U.S. markets Monday, while bond yields climbed to their highest since May at 4.59%. Congress passed a budget resolution, averting a government shutdown and easing market concerns. Global markets rose on softer U.S. inflation data, while oil dipped on supply surplus expectations.

On Our Radar: Due to the holiday-shortened week, economic reports are light, with the next most-significant disclosure being Thursday morning’s initial jobless claims. No major earnings results will be released this week.

TOP STORY

5 Semiconductor Stocks Wall Street Analysts Predict Could Soar In 2025

Analysts expect undervalued semiconductor stocks to shine in 2025, with AMD and Micron positioned for strong gains. Diverging performance across the sector highlights opportunities for investors willing to bet on recovery plays.

Here’s what could drive these stocks higher — and why they might lead the next market rally.

SPONSORED CONTENT

How Japanese Market Leader SBC Medical Group Highlights Potential Investment Opportunities In Cosmetic Healthcare: A Case Study

Cosmetic healthcare is a growing market, with predictions for the global industry to grow at a CAGR of over 8% through 2028. Demand drivers include technological advancements that are giving consumers more financing options and creating less invasive procedures than before for medical and cosmetic treatments. 

Early movers that have already gained the trust of their consumers may have the upper hand, which could benefit companies like Tokyo-based SBC Medical Group (NASDAQ: SBC). SBC Medical already enjoys a dominant market position in Japan and is looking for that momentum to spill over into the international markets.  The company reports it is growing at a double-digit CAGR, outpacing the industry average. Investors who are keen to gain exposure to this opportunity can learn more about SBC Medical’s stock here.

This is a paid ad. Please see 17b disclosure here for more information.

FIVE ZINGERS

Cleaning House: President-elect Trump's new Department of Government Efficiency (or DOGE) is already making noise regarding commercial real estate. Read why the bid to cut red tape could reshape office markets nationwide.

Crypto Warning: Despite the surge in cryptocurrencies in since the election, blockchain miner MARA Holdings may be facing challenges. This is what unusual options activity has to say on the matter.

Chip Wars: On Monday, the Biden administration launched a trade investigation into "legacy" semiconductors produced in China. Read about the geopolitical implications, particularly regarding critical minerals.

Streaming Fortunes: Jimmy Donaldson, better known as MrBeast, is dominating Amazon's streaming platform Prime Video with his new "Beast Games" competition program. Here's what the successful partnership could mean for AMZN stock.

Big Inflows: Institutional investors appear to be taking an interest in financial giant Morgan Stanley due to large investments in the derivatives market. Discover the biggest options trades for MS stock and what they could mean.

SPECIAL OFFER

The Insider Report: Unpacking a Week of Highs and Lows

Editor’s Note: Every week, Benzinga Edge members receive the Insider Report. It’s a rundown of what to expect from the markets in the week to come, which sectors are outperforming and why, and most importantly, a selection of hand-picked stocks that are poised to move up because of that week’s trends. Here’s a sneak peek:

Amidst the market volatility last week, we saw the U.S. Dollar surge to new multi-year highs. It looks like we may see the Dollar even more to test or exceed its 2022 highs, and the question that follows is why?

I've gotten a lot of inquiries lately as to whether stocks and crypto can continue to rally if the Dollar does. The short answer is undoubtedly yes, but the reasons behind the Dollar rally must also be considered.

A lot of it has to do with the world wanting to participate in the U.S. economy and the hope of further growth. But there's also a safety element to it – much of the world is facing geopolitical turmoil, so part of it has to do with a flight-to-safety. To be clear – I'm not sure that the new administration will be able to accomplish all of its economic policy objectives with a strong Dollar. The market always has a mind of its own.

To keep reading and to find out how investors can prepare for the coming shift in Fed policy, sign up for Benzinga Edge here.

SPONSORED CONTENT

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