10 Best Performing Semiconductor Stocks So Far in 2025

8. Silicon Laboratories Inc. (NASDAQ:SLAB)

YTD Returns: 24%

Number of Hedge Fund Holders: 22

Silicon Laboratories Inc. (NASDAQ:SLAB) is a fabless IoT semiconductor company specializing in wireless connectivity solutions for smart homes, industrial automation, and medical devices. The company’s products are used across various industries, including smart home, industrial automation, and automotive sectors.

On February 4, Silicon Laboratories Inc. (NASDAQ:SLAB) reported impressive Q4 2024 results, with revenue reaching $166 million, reflecting a 91% year-over-year growth, although sequential growth remained flat. Management attributed this growth to improvements in excess customer inventory, increased bookings, and market share gains across both of its business units. The 2025 growth outlook is supported by design wins in areas such as connected healthcare, smart metering, commercial retail, and other applications now ramping into production.

Shares of Silicon Laboratories Inc. (NASDAQ:SLAB) have surged 24% year-to-date. This strong performance is partly due to the solid results and a broader upswing in the semiconductor industry. The company was also less impacted by the DeepSeek saga and experienced only a slight decline during the January 27-28 sell-off.

Positive analyst activity post-results also boosted sentiment. Following the robust results, an analyst from Benchmark upgraded Silicon Laboratories Inc. (NASDAQ:SLAB) to Buy from Hold, setting a $160 price target. The analyst’s positive outlook is based on the resolution of industry and customer inventory issues, which enabled the company to deliver an in-line December quarter with flat sequential sales, consistent with company guidance. The analyst believes that improving company fundamentals will lead to upward estimate revisions and sees a positive outlook through the next industry upcycle, potentially extending through fiscal 2026.