Piper Sandler analyst Harsh Kumar believes 2020 appears to be a "major recovery year" for the Semiconductor market Gartner expects the industry to grow 12.5%, inventory levels are low across the board, and the trade narrative is "soothing," Kumar tells investors in a research note. As a result, the analyst expects a "strong pick-up" in demand following a roughly 12% decline in 2019. Stock performance will now depend on the slope of the recovery, which is strong, he contends. Kumar's top picks for 2020 are Macom (MTSI), NXP Semiconductors (NXPI) and Nvidia (NVDA).

Barclays analyst Tom O'Malley raised the firm's price target on Broadcom (AVGO) to $1,500 from $1,405 and keeps an Overweight rating on the shares after hosting management for meetings. Broadcom is one of the unique companies that has a comprehensive view of the semis industry while also capable of providing an "intimate look" at the artificial intelligence market via custom silicon, the analyst tells investors in a research note. The firm says management highlighted the company's inroads with the consumer-facing AI world, providing a differing viewpoint versus Nvidia's (NVDA) vision of the world - pointing to a two-part market of consumer and enterprise that could grow to a 50/50 split over time. Barclays came away from the meetings "with a valuable second opinion on the future of AI and a greater appreciation for the company's many ways to win."