Stifel predicts "winners" in 2025 for simulated connections and processor stocks, praising Nvidia as the "best" in AI and accelerated computing.

Stifel maintains that Nvidia (NVDA.US) remains the "best idea" for 2025 in artificial intelligence and accelerated computing, while emphasizing the top 10 trends in simulation, connectivity, and processors, as well as applications and emerging technologies.Analysts led by Tore Svanberg provide a forecast for the simulation, connectivity, and processor sectors. The analysts state that the main beneficiaries of the AI infrastructure are Astera Labs (ALAB.US), Credo Technology Group (CRDO.US), Monolithic Power Systems (MPWR.US), and Marvell Technology (MRVL.US).According to the analysts, the companies with a reset but strong long-term growth include Silicon Laboratories (SLAB.US) and SiTime (SITM), while the companies with strong fundamentals include Analog Devices (ADI.US), Microchip Technology (MCHP.US), and MACOM Technology Solutions(MTSI.US).For the outlook on applications and emerging technologies, Svanberg and his team assert that Nvidia remains their "best idea" for AI/accelerated computing, as they believe the company could maintain a strong leadership in the AI infrastructure market with the full launch of the Blackwell architecture in 2025.In addition to Nvidia, the analysts say they continue to believe optical systems and components companies will also benefit from the rapid growth in the size of AI clusters and the increasing complexity of network topologies. In this area, the analysts prefer Ciena (CIEN.US), Coherent(COHR.US), and Lumentum(LITE.US). Network topology refers to the physical arrangement of nodes and connections in a computer network.Svanberg and his team also note that Viavi Solutions (VIAV.US) will also benefit as the testing and diagnostic needs of these networks continue to develop.Stifel's top 10 trends for 2025 are: cyclical recovery, interconnect technology, incremental bandwidth growth, geopolitical risk, power and data centers, electronic manufacturing services and hyperscale opportunities, emergence of consumer AI, professional AI cloud, M&A, and auto production expectations.