10 Best Semiconductor Penny Stocks To Invest In Right Now

3. GCT Semiconductor Holding, Inc. (NYSE:GCTS)

Price as of March 5: $1.90

Number of Hedge Fund Holders In Q4 2024: 17

GCT Semiconductor Holding, Inc. (NYSE:GCTS) designs and sells semiconductor chips. It outsources the chipmaking processes to various foundries in East Asia. The company focuses on 4G LTE and 5G chips, which enable connectivity for various commercial devices, including customer-premise equipment (CPEs), mobile hotspots, routers, machine-to-machine applications, and smartphones.

When releasing Q3 2024 financial results in November last year, John Schlaefer, the company’s CEO, promised that they’d not only continue to advance their 5G chipset development but also look for ways to drive sales demand. And the key strategy was to sign MOUs with global partners. In this light, the company recently signed a definitive agreement with a European tier-one wireless infrastructure and terminal provider to collaborate on developing Fixed Wireless Access (FWA) technology. The partnership is built around GCT’s 5G solutions, including modem chipset and RFIC, and it builds on a previous MOU signed in August 2024. The two companies expect that their coming together will enable the launch of FWA devices in the second half of 2025.

The company followed that MOU up with another agreement to collaborate with Globalstar, Inc. to develop two-way satellite messaging systems for Globalstar’s mobile devices and modules. This partnership will use GCT’s IoT chip GDM7243i for Globalstar’s RM200M product. Future products will utilize GCT’s 4G LTE chip GDM7243SL and 5G IoT-enabled chipset to support Globalstar’s satellite network. The company is positioning itself to become a major player in its niche, and 17 hedge funds believe the stock will benefit from this. This is why the company is in the top five of our list.