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While artificial intelligence (AI) chip stocks like Nvidia (NVDA) have helped to lead the broader market's rally, the rising tide of AI optimism hasn't lifted all semiconductor stocks equally. The industry is known for being vulnerable to cyclical demand trends - and while some chip stocks have soared on the basis of their AI exposure, others have lagged amid lingering inventory buildup issues and uneven demand in the automotive and smartphone markets.
But with the broader semiconductor industry poised for long-term growth, that simply means now is a good time to consider picking up shares of some underperforming names. With that in mind, here's one semiconductor stock that has been quiet so far in 2024, but could be on the verge of a much stronger performance in 2025.