Trefis identifies Skyworks, Microchip and NXP as next AI stock picks
Updated
Updated · Trefis · May 5
Trefis identifies Skyworks, Microchip and NXP as next AI stock picks
14 articles · Updated · Trefis · May 5
It says Skyworks offers AI-device connectivity exposure, Microchip supplies data-centre timing and rack-management chips, and NXP is positioned for automotive edge intelligence.
Trefis argues investors are moving beyond early AI winners such as Nvidia and Broadcom toward cheaper semiconductor names tied to wireless, infrastructure and vehicle chip demand.
Skyworks trades about 60% below its 2021 peak, while NXP and Microchip face near-term softness or recovery questions that Trefis says leave longer-term AI upside underappreciated.
Will Big Tech's custom AI chips ultimately dethrone Nvidia's GPU empire in the race for artificial intelligence dominance?
Will the AI industry's massive power demand create an energy crisis that derails its own explosive growth?
Skyworks-Qorvo $22B Merger Poised to Dominate AI Edge Connectivity Amid Regulatory Hurdles
Overview
The $22 billion merger between Skyworks and Qorvo, announced in October 2025, aims to create a leading U.S. company with greater scale and diversified markets, especially in AI edge connectivity. While shareholders approved the deal in February 2026, regulatory scrutiny from the FTC has delayed its expected closing to early 2027. This merger aligns with a broader industry shift from cloud-centric AI to edge AI, driven by soaring data center energy demands and the need for real-time processing in physical AI applications. Meanwhile, companies like Microchip and NXP focus on AI infrastructure and automotive edge AI, facing cyclical risks but positioned for growth amid rising AI adoption and geopolitical challenges.