Category: 3. Business

Canada Post and the union representing some 55,000 postal workers have reached a tentative deal to end a strike which has disrupted mail deliveries across the country.

The details of the deal were not released, but the Canadian Union of Postal Workers (CUPW) said all parties “have agreed on the main points” and strike action had been suspended.

“We need to agree on the contractual language that will form the collective agreements that would be put to a vote by the members,” the union said, adding that it will “retain the right to strike”.

A nationwide mail strike began on 25 September, before switching to a rolling strike amid an ongoing dispute over postal worker’s pay and benefits.

Canada Post also confirmed that a deal had been reached, pending a union vote, saying: “While this is being done, it has been agreed that all strike or lockout activities are suspended.”

The union and the postal service have been negotiating for nearly two years.

In September, the strike was launched hours after the federal government announced it was authorising significant changes at Canada Post.

The proposed new measures included ending door-to-door mail delivery to about four million homes, allowing non-urgent letter mail to be moved by ground instead of air, shutting some formerly rural post offices, and giving the service more flexibility to raise prices.

The government argues that the changes are necessary to stop Canada Post from losing so much money. Canada Post lost C$1bn ($717; £535m) last year and is on track to lose C$1.5bn this year, according to government figures.

The Canadian postal service – like the UK’s Royal Mail and the United States Postal Service – has seen sharp declines in letter mail delivery over the past decades and subsequent financial shortfalls.

Its three primary revenue streams – letter mail, direct-marketing mail and parcel mail – are all in decline, either through lack of demand or through stiff competition from other courier services.

Previously postal workers went on strike in November 2024 over pay and working conditions.

Last December, ahead of the busy holiday season, the Canadian government ordered the postal workers back to work.

By Michael Sincere

Linda Raschke shares the secrets behind playing to win and her successful trading career

“You are going to lose money,” says stock trader Linda Raschke. “It’s the tuition that every trader ends up paying.”

‘If trading were easy, it wouldn’t exist, because everybody would be a winner.’Linda Raschke

Linda Raschke first learned about the stock market from a book in her father’s library: “A Treasury of Wall Street Wisdom,” edited by Harry D. Shultz. A copy still sits on her shelf. Raschke began her investing career at the Pacific Coast Stock Exchange before moving to the Philadelphia Stock Exchange, where she gained experience in making markets in equity options.

After becoming a commodity trading advisor, or CTA, Raschke launched LBR Group and LBR Asset Management. She founded the Granat hedge fund, ranked by Barclay Hedge as No. 17 out of 4,500 hedge funds for best five-year return. She was also officer of several technical societies and lectured on technical analysis around the world. Raschke offered some of her findings in “Street Smarts,” a book written in collaboration with Larry Connors.

Raschke is known for swing trading for shorter durations – anywhere from an hour to two months. After 45 years, she remains a profitable trader, which she attributes to daily preparation. Raschke was the first woman to be included in Jack Schwager’s book, “The New Market Wizards,” which elevated her credibility, and fame, among traders.

Raschke is the author of “Trading Sardines: Lessons in the Market from a Lifelong Trader,” an account of what she’s learned in decades of market experience. Her trading is built around robust technical set-ups that she has modeled across all markets. Raschke refers to them as “principles of price behavior.” She acknowledges that decades of tape reading, and market experience, make a big difference.

In this recent interview, edited for length and clarity, Raschke discusses what traders need to do to be profitable, how to minimize losing money, and the set-ups she looks for when trading.

MarketWatch: What advice would you give new traders?

Raschke: Start with a very small account size because you are going to lose money. It’s the tuition that every trader ends up paying. People think they’re smart, but they are not savvy, yet, to different market environments and context. It’s much more than just learning technical analysis.

MarketWatch: What do traders need to understand before they can become consistently profitable?

Raschke: When to use leverage but, even more important, understanding the bad habits that are costing you money. No one can teach you how to trade. You need to step up, find your own style, and keep trying different methods. Most people underestimate the learning curve. There is an initial period that can last for a few years to a lifetime when the learning is haphazard and disorganized. During this stage, you are accumulating experiences. At some point, the trader becomes more deliberate about their development, figuring out what kind of trader they will be. This is the hard part. If you are just starting, it’s helpful to have a lot of money tucked away that you can live off of without the pressure of having to make money.

‘Many traders underestimate the number of hours that they need to devote each day to trading. It is not a part-time job.’

MarketWatch: Why do so many traders struggle with discipline?

Raschke: Many people don’t give it enough time. If they’re not successful on a trade immediately, they often move too quickly to the next trade. Every time they click, it’s a dopamine hit. It’s very addictive. It’s like gambling. It goes to the same part of the brain that gambling goes to, which is why some people click far too often. Most don’t recognize their own cognitive biases, either.

MarketWatch: What separates the small percentage of traders who succeed from the majority who don’t?

Raschke: First is awareness or self-actualization. If trading were easy, it wouldn’t exist, because everybody would be a winner. Several studies have concluded that very few traders’ accounts were profitable at the end of the year. If you are a trader with an account size of less than $30,000, 5% are going to be profitable at the end of the year. Do you want to be a professional tennis player, golfer, or rock ‘n’ roll star? There’s only so much room at the top in most fields.

MarketWatch: How do you approach the markets each day?

Raschke: Every single day, I have a game plan. Let’s say I have an existing position in gold (GC00). Will I add to an existing position because it’s in a strong uptrend? Am I going to move my stop? Or am I going to take partial profits and trade against the core position. This is part of my game plan, which is all I care about. My business is to see if there are any arbitrage opportunities during the day. If a security gaps up, will it retrace back below its 7 a.m. CST reading by noontime? Technical analysis ignores the news and ignores the fundamentals, and focuses instead on the chart to gauge how fast prices are moving, among other things.

‘I always take on a position with the intention of holding it overnight. I make most of my money holding overnight.’

MarketWatch: How would you describe your trading style and time frame?

Raschke: I’m not a day trader. I always take on a position with the intention of holding it overnight. I make most of my money holding overnight. Whether that happens or not is another story. The market is similar to bending over and picking up a dollar bill on the sidewalk. It’s like 31 flavors. There are many beautifully moving markets, but they won’t benefit you unless you prepare and do your homework.

MarketWatch: How do you approach setting up a trade in something such as the S&P 500 SPX?

Raschke: You look at the price opening today relative to the previous day’s range. You decide whether to trade off the opening price, and where support should be if the market is in an uptrend, but it may want to sell off first thing in the morning. A lot involves making a note of how price acts at those levels. For example, let’s say the market has had four consecutive down bars, which is rare in the S&P 500. The next morning, I may consider buying, since the market is oversold, but I may not hold it for too long unless it makes a “V” or builds a small base.

MarketWatch: What do most people misunderstand about what it really takes to become a successful trader?

Raschke: Many traders underestimate the number of hours that they need to devote each day to trading. It is not a part-time job. It is a 12- to 14-hour-a-day job when you’re starting. They underestimate the homework, preparation and studying, and being ready for two or three different scenarios the next day. Once you’ve done that, you have to do it day after day to get a feel for your Achilles’ heel. It is not about swinging for the fences, getting rich, buying bitcoin and hoping it goes to a billion dollars. Each day has its own playbook, and you go in there and you make your plays.

MarketWatch: Why is it so hard for most traders to capture the big winning trades?

‘The way to win this game is to stay in it. Most people will not. They will make big errors. They will get frustrated. They will spin their wheels.’

Raschke: Statistically speaking, four days out of the year could make 80% of your profits. Understanding how to capture those fat tails is really what trading is all about. Sometimes systems will keep you in those fat tails, which is the idea behind trend following. However, this approach is not appropriate for new traders, as they often lack the capital and fortitude to execute it correctly. It’s nice to talk about staying with a trade, but trend following has some 40% drawdowns if you are trading it appropriately. New traders won’t be able to handle that.

MarketWatch: How do you develop and test the trading patterns that you use?

Raschke: I have lots of fabulous little patterns that I like to trade, but they may occur only twice a month. You have to do modeling, which involves asking questions. For example, what happens if the price remains above the opening price throughout the day, only to drop below it at noon? What percentage of the time will it close on its low? What percentage of time does it come back up? People need to spend a lot more time doing this basic modeling, which is not a mechanical system.

MarketWatch: Can traders predict major market moves or outlier events in advance?

Raschke: No. The whole point is that you can’t predict these things in advance. You couldn’t predict in advance that Russia was going to invade Ukraine, and wheat went skyrocketing higher. You can’t predict these outliers. You need to understand when they start to unfold and learn what the market is telling you.

MarketWatch: Once an outlier move begins, how should traders respond?

Raschke: You want to trade in the same direction as the outlier. I don’t want to step in front of a freight train and play mean reversion at the same time that something’s exploding. Hell no. When that freight train leaves the station, you want to jump onboard, especially when it’s starting to pick up speed.

MarketWatch: What’s the most important factor in becoming a successful trader over the long run?

Raschke: The way to win this game is to stay in it. Most people will not. They will make big errors. They will get frustrated. They will spin their wheels. They don’t understand capital preservation. They will trade on margin, but the way to win in the long run is to stay in it, as this allows you to accumulate experience.

Michael Sincere is the author of several books, including “Understanding Stocks,” “Understanding Options,” and “Help Your Child Build Wealth.”

More: Stocks near all-time highs. Consumer sentiment near-record lows. So what gives?

Also read: How $5,000 became $31 billion: 5 market lessons from the greatest trader ever

-Michael Sincere

(MORE TO FOLLOW) Dow Jones Newswires

11-22-25 1123ET

Copyright (c) 2025 Dow Jones & Company, Inc.

• Wondering if Baxter International is a hidden gem or a value trap? You’re not alone, especially with the stock catching the eye of investors searching for a bargain.

• Despite a tough market stretch with a 20.1% dip over the past month and a dramatic 37.4% drop year-to-date, many are asking whether the risk has actually created new upside.

• In recent weeks, headlines have focused on Baxter’s strategic moves, including updates around divestitures and streamlining its business operations. These changes have been interpreted by some as steps toward stabilizing the firm’s financial health and regaining investor confidence.

• According to our quick scorecard, Baxter International scores 5 out of 6 on key valuation checks. This suggests it is undervalued by several important measures. We’ll walk through those methods next and share why the real picture of value might be even more nuanced than these scores alone reveal.

Find out why Baxter International’s -43.6% return over the last year is lagging behind its peers.

The Discounted Cash Flow (DCF) model aims to estimate a company’s intrinsic value by projecting its future cash flows and discounting them back to today. For Baxter International, this method uses expected Free Cash Flow (FCF) figures as a core input.

Currently, Baxter International generates FCF of around $261 million. Analyst forecasts extend to 2027, expecting FCF to grow steadily to $943 million by that year. Beyond this, projections are extrapolated, with FCF expected to exceed $1.4 billion in 2035. These projections highlight consistent growth in operational cash generation, which is a fundamental signal of underlying value.

By aggregating and discounting these future cash flows, the model calculates an intrinsic value of $29.53 per share. This figure is almost 38% higher than the current market price, suggesting the stock could be significantly undervalued if these expectations are met.

Based on the DCF outcome, Baxter International is trading at a sizable discount to its calculated intrinsic worth. This indicates strong upside potential for value-oriented investors.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Baxter International is undervalued by 38.0%. Track this in your watchlist or portfolio, or discover 918 more undervalued stocks based on cash flows.

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Baxter International.

The Price-to-Sales (P/S) ratio is often the go-to valuation metric for companies where top-line growth provides useful context, especially if earnings are volatile or temporarily negative. This makes P/S a relevant benchmark for Baxter International right now, as it highlights how much investors are paying for every dollar of revenue, regardless of short-term profit swings.

In industries like Medical Equipment, a “normal” or “fair” P/S ratio reflects not just growth expectations but also risk and wider market sentiment. Higher growth prospects and lower risk usually warrant a higher multiple, while the reverse is true for slower growth or elevated uncertainty. Context is key, which is why comparing across multiple valuation markers is critical.

Currently, Baxter International trades at a P/S ratio of 0.85x. This stands in stark contrast to the industry average of 2.96x and the peer average of 4.62x, both considerably higher. However, benchmarks alone do not paint the full picture. Simply Wall St’s proprietary Fair Ratio, which weighs Baxter’s revenue growth, profit margins, industry stature, and risk factors, suggests a fair price-to-sales of 1.28x for Baxter.

The advantage of using a Fair Ratio is that it is more nuanced than an industry or peer comparison. It takes into account company-specific growth rates, risk profile, profitability, market capitalization, and the unique characteristics of the Medical Equipment sector, offering a more accurate view of where the stock’s value should sit.

Since Baxter’s current P/S of 0.85x is below the Fair Ratio of 1.28x, the shares appear undervalued using this method as well.

Result: UNDERVALUED

PS ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1422 companies where insiders are betting big on explosive growth.

Earlier we mentioned that there’s an even better way to understand valuation, so let’s introduce you to Narratives. A Narrative is a simple, story-driven approach where you combine your perspective on a company, such as Baxter International, with financial forecasts to estimate fair value based on your own assumptions about future revenue, margins, and risks.

By linking the company’s story to tangible financial goals, Narratives help you see how your outlook translates into a price and highlight what would need to happen for Baxter’s stock to be a buy or sell at today’s price.

Narratives are available and easy to access through Simply Wall St’s Community page, where millions of investors use this powerful tool to test their convictions and share views.

The best part is, Narratives update in real time as new news or results come in, automatically adjusting your fair value and risk assessment. Your investment decision always stays current.

For example, some Baxter investors see a bright future and forecast earnings near $1 billion with a price target as high as $47, while others remain cautious, projecting $750 million in profits and a price closer to $19. This demonstrates how Narratives reflect a range of views and help you make smarter, more tailored decisions.

Do you think there’s more to the story for Baxter International? Head over to our Community to see what others are saying!

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include BAX.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

BOSTON, Nov 22 (Reuters) – Federal Reserve Bank of Boston President Susan Collins said Saturday that she’s still leaning against the U.S. central bank cutting its interest rate target next month as it faces ongoing risks to both its inflation and job mandates.

“I do see reasons to be hesitant” about lowering the cost of short-term borrowing at the December 9-10 Federal Open Market Committee meeting. “My own view is that policy is currently in the kind of mildly restrictive range after the 50-basis-point easing that we did in September and October, and that’s appropriate” given the current state of the economy, Collins told reporters at a conference at her bank.

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The challenge for the Fed right now is that it faces ongoing risks created by above-target inflation while at the same time the job market is softening, she said. For monetary policy, “I see risks on both sides and it’s really about balancing those risks.”

Collins was asked if she was willing to dissent against a rate cut at the upcoming Fed meeting, which is likely to be unusually fractious for a committee that typically sees policymakers set policy by clear consensus. She said she has not decided what she wants the Fed to do at the meeting and would like to see more data before making a call.

Over recent days, a wide range of officials have staked out positions on whether the Fed should cut what is now a 3.75% to 4% federal funds rate target range by a quarter-percentage-point. The Fed’s other two rate cuts were driven by officials’ desire to support a softening job market while still keeping interest rate policy in a place where it can depress inflation that continues to overshoot the Fed’s 2% target.

Fed officials are also moving toward the meeting with a dearth of the data they usually rely on to set monetary policy, with the government shutdown only recently resolved. A substantial number of policymakers have been against cutting rates amid ongoing inflation concerns.

Some on the Fed have prepared observers to see an unusual level of formal disagreement at the FOMC meeting. For those who have accused the Fed of groupthink when it comes to setting policy, “get ready: You might see the least groupthink you’ve seen from the FOMC in a long time,” Fed Governor Christopher Waller said on Monday.

Collins told reporters “we’re in a complex period” for setting monetary policy. “I think having a range of views is important, and I think there are some periods where there’s, you know, more of a range. If we all thought exactly the same thing, I think that would be, would be problematic.”

The Boston Fed bank president also said in her comments to the press that her outlook for the future of the economy is relatively benign, with unemployment rising a bit, and inflation pressures eventually moderating from current levels. She added that financial conditions are putting some wind at the economy’s back.

Collins also explained what could alter her view on the right path for interest rate policy. “Looking at both sides of the mandate, there are risks on the employment side, and certainly, if I saw more evidence of more softening and weakness, I would take that seriously.”

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As health officials investigate more than 30 cases of infant botulism linked to ByHeart baby formula since August, parents who say their children were sickened with the same illness months before the current outbreak are demanding answers, too.

California public health officials confirmed late Friday that six babies in that state who consumed ByHeart formula were treated for botulism between November 2024 and June 2025, up to nine months before the outbreak that has sickened at least 31 babies in 15 states.

At the time, there was “not enough evidence to immediately suspect a common source,” the California Department of Public Health said in a statement.

Even now, “we cannot connect any pre-August 1 cases to the current outbreak,” officials said.

Parents of at least five babies said that their infants were treated for the rare and potentially deadly disease after drinking ByHeart formula in late 2024 and early 2025, according to reports shared with The Associated Press by Bill Marler, a Seattle food safety lawyer representing the families.

Amy Mazziotti, 43, of Burbank, California, said her then-5-month-old son, Hank, fell ill and was treated for botulism in March, weeks after he began drinking bottles filled with ByHeart formula.

Katie Connolly, 37, of Lafayette, California, said her daughter, M.C., then 8 months old, was hospitalized in April and treated for botulism after being fed ByHeart formula in hopes of helping the baby sleep.

For months, neither mother had any idea where the infections could have originated. Such illnesses in babies typically are caused by spores spread in the environment or by contaminated honey.

Then ByHeart recalled all of its products nationwide on Nov. 11 in connection with growing cases of infant botulism.

As soon as she heard it was ByHeart, Mazziotti said she thought: “This cannot be a coincidence.”

ByHeart officials this week confirmed that laboratory tests of previously unopened formula found that some samples were contaminated with the type of bacteria that leads to infant botulism.

Marler said at least three other cases that predate the outbreak involved babies who drank ByHeart and were treated for botulism, according to their families. One consumed ByHeart formula in December 2024. The other two were sickened later in the spring, he said.

An official with the U.S. Centers for Disease Control and Prevention said federal investigators were aware of reports of earlier illnesses but that efforts are focused now on understanding the unusual surge of dozens of infections documented since Aug. 1.

“That doesn’t mean that they’re not necessarily part of this,” said Dr. Jennifer Cope, a CDC scientist leading the probe. “It’s just that right now, we’re focusing on this large increase.”

Because so much time has passed and because parents of babies who got sick earlier may not have recorded lot numbers of product or kept empty cans of formula, “it will make it harder to definitively link them” to the outbreak, Cope said.

Connolly said it feels like her daughter has been forgotten.

“What I want to know is why did the cases beginning in August flag an investigation, but the cases that began in March did not?” Connolly said.

Cope and other health officials said the strong signal connecting ByHeart to infant botulism cases only became apparent in recent weeks.

Before this outbreak, no powdered infant formula in the U.S. had tested positive for the type of bacteria that leads to botulism, California health officials said. The number of cases also were within an expected range. A test of a can of open formula fed to a sick baby in the spring did not detect the bacterium.

Then, beginning in August and through October, more cases were identified on the East Coast involving a type of toxin rarely detected in the region, officials said. More cases were seen in very young infants and more cases involved ByHeart formula, which accounts for less than 1 percent of infant formula sold in the U.S.

Earlier this month, after a sample from a can of ByHeart formula fed to a sick infant tested positive for the germ that leads to illness, officials notified the CDC, the U.S. Food and Drug Administration and the public.

Less than 200 cases of infant botulism are reported in the U.S. each year. The disease is caused when babies ingest spores that germinate in the gut and produce a toxin. The bacterium that leads to illness is ubiquitous in the environment, including soil and water, so the source is often unknown.

Officials at the California Infant Botulism Treatment and Prevention Program track reports of botulism and the distribution of the only treatment for the illness, an IV medication called BabyBIG.

Outside food safety experts said the CDC should count earlier cases as part of the outbreak if babies consumed ByHeart formula and were treated for botulism.

“Absolutely, yes, they should be included,” said Frank Yiannas, former deputy commissioner for food policy and response at the U.S. Food and Drug Administration. “Why wouldn’t they be included?”

Sandra Eskin, chief executive of STOP Foodborne Illness, an advocacy group, agreed.

“This outbreak is traumatic for parents,” she said. “They may have fed their newborns and infants a product they assumed was safe. And now they’re dealing with hospitalization and serious illness of their babies.”

Connolly and Mazziotti said their babies are improving, though they still have some lingering effects. Botulism causes symptoms that include constipation, poor feeding, head and limb weakness and other problems.

After months of uncertainty about the potential cause of the infection, Connolly said she “became completely obsessed” with the link to ByHeart formula. Now, she just wants answers.

“We deserve to know the data that can help us understand how our babies got sick,” she said.

___

The Associated Press Health and Science Department receives support from the Howard Hughes Medical Institute’s Department of Science Education and the Robert Wood Johnson Foundation. The AP is solely responsible for all content.

Story Continues

Growth expectations and risk play a big part in determining what a “normal” or “fair” PE ratio should be. Firms with stronger expected earnings growth or lower risk often command higher PE multiples, while those with slower growth or greater uncertainty typically trade at lower levels.

Nasdaq currently trades at a PE ratio of 30.8x, which is just below the peer average of 31.9x and significantly higher than the Capital Markets industry average of 23.6x. However, using Simply Wall St’s proprietary “Fair Ratio” model, which accounts for Nasdaq’s growth prospects, profitability, industry, market cap, and unique risk profile, the fair PE ratio for Nasdaq is calculated at 16.0x. Unlike mere comparisons with peers and the broader industry, the Fair Ratio aims to provide a more nuanced view, reflecting the company’s true fundamentals and risk-adjusted outlook.

Since Nasdaq’s actual PE multiple is well above its Fair Ratio, this approach suggests the stock may be priced higher than its underlying performance warrants.

Result: OVERVALUED

PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1422 companies where insiders are betting big on explosive growth.

Earlier, we mentioned there is an even better way to understand valuation, so let’s introduce you to Narratives. A Narrative is a simple yet powerful approach that lets you apply your own story or perspective to a company, connecting your view about future revenue, earnings, and margins to a financial forecast and ultimately a fair value estimate.

Narratives help you link the reasons behind Nasdaq’s recent developments, such as new products, partnerships, or regulatory changes, directly to numbers and fair value. This means your investment decisions are not just about ratios but the company’s actual journey and what you believe will happen next.

This tool is accessible to everyone on Simply Wall St’s Community page, where millions of investors already create and track Narratives tailored to their conviction and research. Narratives automatically update as new earnings reports or news come out, making your view always up to date and allowing you to quickly see if the price still matches your expectations.

For example, the most optimistic Narrative values Nasdaq at $115.00, believing that international growth and tech expansion will drive substantial earnings, while a cautious Narrative pegs it at $74.00, expecting competitive pressure to keep margins and revenue under pressure. Both use the same data, but different stories and forecasts.

Do you think there’s more to the story for Nasdaq? Head over to our Community to see what others are saying!

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NDAQ.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

By Britney Nguyen and Philip van Doorn

Nvidia isn’t the only semiconductor company with compelling revenue-growth prospects – Credo and Astera Labs are also among players expected to put up stellar numbers

Astera Labs, Nvidia and Credo are among the chip companies with the best projected revenue-growth prospects looking out two years.

Nvidia Corp. increased sales by 62% in its latest quarter, and analysts see more revenue momentum ahead. But investors looking for fast growth in the chip sector have a number of places to look beyond the world’s largest company.

The artificial-intelligence trade has come under pressure in recent weeks, reflecting a flurry of concerns around factors such as the interest-rate outlook, OpenAI’s future position in the AI ecosystem and even Nvidia’s (NVDA) own swelling inventory levels.

That means investors might need to start getting more selective when looking for AI winners. Focusing on sales-growth expectations over the next two years could be a good place to start.

Below is a list of rapidly growing companies in the semiconductor industry. Two of them are Credo Technology Group Holding Ltd. (CRDO) and Astera Labs Inc. (ALAB), which both make high-speed connectivity components for data centers and other AI infrastructure.

Credo and Astera Labs have been “rocket ships” in terms of customer demand because both companies are “addressing one of the key bottlenecks” in the AI buildout, which is connectivity, William Blair analyst Sebastien Naji told MarketWatch.

Nvidia and its competitors have turned to rolling out new graphics processing units on an annual cadence, “but the actual processors themselves are still operating much faster than the rest of the system can actually process that data,” Naji said. Therefore, connectivity has become a more critical part of improving overall system performance.

The companies stand to drive future sales growth by capitalizing on the AI-infrastructure buildout, which Nvidia Chief Executive Jensen Huang said could drive up to $4 trillion worth of spending through the end of the decade. Naji noted Astera Labs and Credo are also in the process of diversifying their businesses via a mix of new customers and product offerings.

For instance, a new switch from Astera Labs “meaningfully increases the average sales price of the solutions that they’re selling,” he said.

Up until last year, Amazon.com Inc. (AMZN) was Credo’s main growth driver and customer, representing about two-thirds of its revenue, Naji noted. But Credo, which sells active electrical cables, now has “five reliable hyperscaler customers,” he said. Those are are Amazon, Microsoft Corp. (MSFT), xAI, Meta Platforms Inc. (META) and Oracle Corp. (ORCL)

At a high level, Naji acknowledges concerns about valuations. The stocks aren’t cheap relative to near-term earnings estimates, but Naji sees “plenty of pent-up” demand as well as a high likelihood of beats and raises over the next few quarters as the new products manifest more in financials.

Screening semiconductor companies for expected sales growth

To identify which semiconductor manufacturers are expected by analysts to increase revenue most quickly over the next two years, we began with a list of 76 companies.

The list includes all 30 stocks in the PHLX Semiconductor Index SOX, which is tracked by the iShares Semiconductor ETF SOXX. To this we added 36 more companies in the S&P Composite 1500 index XX:SP1500 that were identified by LSEG as being in the “semiconductor” or “semiconductor equipment and testing” industries, or the “semiconductors and semiconductor equipment” Global Industrial Classification Standard group.

Then we added 10 more industry players that are based outside the U.S. whose stocks are held within the portfolio of the iShares MSCI World ETF URTH. This exchange-traded fund tracks the MSCI World index of developed markets.

Our screen centered on projected compound annual growth rates (CAGR) for the companies’ sales from calendar 2025 through 2027. These are based on consensus estimates among analysts working for brokerage and research firms polled by LSEG, with adjustments for companies (such as Nvidia) whose fiscal reporting periods don’t match the calendar.

We cut the list of 76 companies to 66 for which consensus estimates through 2027 were available from groups of at least five analysts.

Here are the 20 remaining semiconductor companies expected to grow sales most quickly from 2025 through 2027:

   Company                                       Ticker    Estimated sales CAGR from 2025 through 2027  Forward P/E 
   Astera Labs Inc.                             ALAB                                             40.2%         60.8 
   SiTime Corp.                                 SITM                                             36.7%         61.0 
   Nvidia Corp.                                 NVDA                                             36.5%         25.1 
   Credo Technology Group Holding Ltd.          CRDO                                             36.3%         55.7 
   BE Semiconductor Industries N.V.             NL:BESI                                          35.1%         40.0 
   Advanced Micro Devices Inc.                  AMD                                              35.1%         32.8 
   Broadcom Inc.                                AVGO                                             32.3%         36.2 
   Impinj Inc.                                  PI                                               23.1%         52.9 
   Micron Technology Inc.                       MU                                               22.5%         10.8 
   ACM Research Inc.                            ACMR                                             22.0%         13.7 
   Arm Holdings PLC                             ARM                                              20.7%         62.7 
   Taiwan Semiconductor Manufacturing Co. Ltd.  TSM                                              19.0%         22.5 
   Lattice Semiconductor Corp.                  LSCC                                             19.0%         44.5 
   Allegro Microsystems Inc.                    ALGM                                             18.8%         27.2 
   Teradyne Inc.                                TER                                              18.2%         30.6 
   Marvell Technology Inc.                      MRVL                                             17.5%         23.5 
   First Solar Inc.                             FSLR                                             17.4%         11.1 
   Microchip Technology Inc.                    MCHP                                             17.3%         22.9 
   Silicon Laboratories Inc.                    SLAB                                             16.8%         45.7 
   Rambus Inc.                                  RMBS                                             16.4%         29.7 
                                                                                                       Source: LSEG 

The table includes forward price-to-earnings ratios. These are Thursday’s closing prices divided by consensus earnings-per-share estimates for the next 12 months. In comparison, the S&P 500’s SPX forward P/E multiple is 22.8; that is lower than the P/E for all but five stocks on the list above. But the S&P 500’s projected revenue CAGR from 2025 through 2027 is a weighted 6.8%, according to LSEG, which is a low level compared with the 20 companies listed here.

A look at some of the other top names

Teradyne Inc. (TER), which designs and manufactures automatic testing equipment, is among the top 20 companies in the semiconductor industry with the highest projected revenue CAGR through 2027.

When analyzing Teradyne’s earnings report in October, Morgan Stanley’s Shane Brett noted that the company’s core businesses of networking, memory and custom chips was “really strengthening.” But a big question is whether the company will get qualified by Nvidia.

Brett sees opportunities for Teradyne to gain share in the compute-testing market, especially as the incumbent Advantest Corp. (ATEYY) (JP:6857) is seeing demand from Nvidia, Advanced Micro Devices Inc. (AMD) and Broadcom Inc. (AVGO) outpace supply, though “the timing and specific customers remain uncertain.”

Meanwhile, memory-chip maker Micron Technology Inc. (MU), which has been among the top performers in the S&P 500 this year, should be able to build upon momentum in its business of dynamic random-access memory thanks to supply shortages.

While Micron did not preannounce its fiscal first-quarter results during a conference appearance this week as some on Wall Street were looking forward to, UBS analyst Timothy Arcuri is upbeat about the period and the prospect of a durable cycle for high-bandwidth memory even beyond that.

Programmable-chip maker Lattice Semiconductor Corp. (LSCC) is another semiconductor company that is expected to see a high sales CAGR through 2027. The company designs and manufactures low-power field-programmable gate arrays, or FPGAs, which are chips that can be programmed and reprogrammed after manufacturing for different tasks.

Historically, most of Lattice’s exposure has been in the automotive and industrial markets, KeyBanc Capital Markets analyst John Vinh told MarketWatch. Those markets, however, have been in a downturn, and the expected recovery has been shallower than what investors were expecting at the beginning of the year because of uncertainties over U.S. trade policy.

Vinh expects more meaningful recovery in the industrial market next year as the cyclical semiconductor industry comes out of an inventory-destocking cycle.

Meanwhile, the communications and computing segment has been “the other key growth driver” for Lattice, Vinh noted, which refers to communications infrastructure and both traditional and AI data centers.

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11-22-25 0900ET

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