10 Best Performing Semiconductor Stocks So Far in 2025

5. Arm Holdings Plc. (NASDAQ:ARM)

YTD Returns: 30%

Number of Hedge Fund Holders: 42

Arm Holdings Plc. (NASDAQ:ARM) is a UK-based company specializing in semiconductor and software design. Renowned for its energy-efficient processor architectures, Arm licenses its intellectual property to a broad range of partners. Arm-based chips are widely used in various devices, such as smartphones, tablets, and wearables, and are increasingly found in data centers and automotive applications. The company also offers software development tools, systems and platforms, system-on-a-chip (SoC) infrastructure, and software. Softbank Group holds the majority ownership of Arm Holdings Plc. (NASDAQ:ARM).

There are reports suggesting that Arm Holdings Plc. (NASDAQ:ARM) is planning to launch its own chips this year, with Meta Platforms (NASDAQ:META) rumored to be one of its initial customers. If these reports are accurate, it would increase competition for both Advanced Micro Devices Inc. (NASDAQ:AMD) and Intel Corp. (NASDAQ:INTC). However, this development should benefit Arm Holdings Plc. (NASDAQ:ARM) in the long run by diversifying its revenue streams and reducing its dependency on licensing its intellectual property to other companies.

Currently, Arm Holdings Plc. (NASDAQ:ARM) shares are trading at $160.3, reflecting a 30% increase year-to-date. The stock has also reached a peak of $179.9 during 2025. The company remains well-positioned within the global semiconductor ecosystem, licensing its energy-efficient chip architecture to nearly all leading semiconductor companies, including Apple, Qualcomm, and Nvidia. The company’s push into the automotive sector and AI-powered IoT solutions is expanding its total addressable market.