The global semiconductor market is poised for substantial growth, with research firm MarketsandMarkets estimating its value to reach $628 billion in 2024 and expand to $707 billion by 2025, reflecting a robust 12.5% growth rate. The firm, in their Global Semiconductor Industry Outlook 2025 report, also highlights that this surge is driven by increasing demand for semiconductors in data centers, high-performance computing (HPC), and artificial intelligence (AI) applications. As AI adoption accelerates, semiconductors are cementing their role as the foundation of next-generation digital infrastructure. The rising needs of hyperscalers and cloud service providers, particularly in handling AI workloads, are expected to further drive semiconductor industry expansion.
Further, MarketsandMarkets notes that the key growth drivers for the semiconductor sector in 2025 include high-bandwidth memory (HBM) that is crucial for AI accelerators and GPUs, AI servers that power deep learning and real-time analytics, and Gen-AI smartphones featuring advanced AI-integrated chips. However, the industry faces notable challenges as well, including supply chain disruptions and evolving regulatory frameworks that impact production costs, market access, and overall growth.
The cyclical nature of the semiconductor industry and ongoing uncertainties, such as tariffs and trade policies, have been major discussion points among investors. Jordan Klein, Managing Director at Mizuho Securities, had addressed the industry’s demand outlook in a CNBC interview, emphasizing that semiconductor stocks often anticipate market fundamentals six months in advance. While AI-driven companies like NVIDIA are experiencing strong demand, other segments, such as memory, PCs, and industrial chips, are not delivering significant earnings surprises. Meanwhile, investors are increasingly favoring sectors like software and fintech over semiconductors. Klein also raised concerns about a potential slowdown in 2025, suggesting that many investors are currently adopting a “wait and see” approach rather than buying in expectation of near-term improvements. While AI-driven semiconductor companies are likely to maintain momentum, weaker segments may struggle to recover in the short term.
So far, Klein’s take seems to be playing out. The S&P Semiconductors Industry Index is down nearly 13% in 2025, significantly lagging the broader S&P 500, which has fallen about 3.5%. But there’s a silver lining—historically, when semiconductor companies start cutting earnings estimates, their stock prices tend to rebound because those cuts are often already priced in. This could create buying opportunities for long-term investors.
Despite short-term headwinds, the long-term outlook for semiconductors remains strong. AI, cloud computing, and HPC will continue to push demand for advanced chips, and while cyclical downturns and regulatory challenges may create volatility, they also open the door for investors to buy quality semiconductor stocks at lower valuations. Keeping an eye on earnings revisions and broader market trends could help investors find solid entry points in this ever-evolving industry.
On that note, let’s take a closer look at our selection of 10 best semiconductor stocks to buy according to billionaires.
A close-up of a technician’s hands working on an advanced semiconductor substrate.
Our Methodology
For this list, we first compiled a preliminary list of Semiconductors and Semiconductor Equipment & Materials stocks using a review of online screeners, ETFs and financial media reports. We then analysed Insider Monkey’s database of billionaire holdings to determine the most favoured semiconductor stocks among those investors. We then ranked top 10 of these stocks in ascending order based on the number of billionaire investors holding positions in each company as of Q4 2024. Additionally, we also provide data to assess hedge fund sentiment surrounding these stocks, utilizing data from Insider Monkey’s Q4 2024 hedge fund database to provide deeper insights into institutional investor trends.
Note: All pricing data is as of market close on March 20.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Best Semiconductor Stocks to Buy According to Billionaires
10. Intel Corp. (NASDAQ:INTC)
Number of Billionaire Investors: 15
Billionaire Holdings: $953 million
Number of Hedge Fund Holders: 83
Intel Corp. (NASDAQ:INTC) is a global leader in designing and manufacturing microprocessors and semiconductor components, powering everything from personal computers to data centers and IoT applications. The company is well known for its innovations in CPU architecture and process technology, maintaining a significant presence in the semiconductor industry.
On March 19, Intel Corp. (NASDAQ:INTC)’s stock dropped 7% after a report from media agency DigiTimes stirred up speculation. The report cited Paul Liu, head of Taiwan’s National Development Council (NDC) and a board member at Taiwan Semiconductor Manufacturing (NYSE:TSM), who dismissed rumors that TSMC was looking to buy Intel’s foundry business. Liu clarified that such a deal had never even been discussed at the board level. To make his point clear, he compared the idea to mixing diesel with gasoline, something that just wouldn’t work.
Meanwhile, Reuters reported that Nvidia Corp. (NASDAQ:NVDA) CEO Jensen Huang also denied any involvement in acquiring a stake in Intel Corp. (NASDAQ:INTC). His comments came after reports suggested that a consortium, including TSM, was considering taking over Intel’s factories. Even though these rumors have been debunked, they’ve helped push Intel’s stock higher in recent months.
On March 18, Intel announced that Lip-Bu Tan would take over as its permanent CEO, a move that was met with optimism. Tan is a well-respected leader in the tech world, and his appointment has sparked hope that he’ll help steer the company in a better direction. Analysts seem to agree—on March 20, Northland Securities analyst Gus Richard reiterated his Buy rating on Intel’s stock, setting a price target of $28.
9. Advanced Micro Devices Inc. (NASDAQ:AMD)
Number of Billionaire Investors: 18
Billionaire Holdings: $5.1 billion
Number of Hedge Fund Holders: 96
Advanced Micro Devices Inc. (NASDAQ:AMD) is a leading semiconductor company specializing in high-performance computing and graphics solutions. Its broad product portfolio includes microprocessors, graphics processors, and system-on-chip (SoC) solutions designed for data centers, gaming, and embedded systems. Over the years, AMD has gained notable market share in both the CPU and GPU markets, competing directly with Intel Corp. (NASDAQ:INTC) and NVIDIA Corp. (NASDAQ:NVDA).
On March 14, a Mizuho Securities analyst lowered the price target for the company from $140 to $120 while maintaining an Outperform rating. The revision reflected expected challenges in AMD’s artificial intelligence (AI) growth, particularly in gaining market share for Chip-on-Wafer-on-Substrate (CoWoS) technology. Despite these hurdles, the analyst remains optimistic about AMD’s potential in the server and PC markets, citing the company’s strong financial position and manageable debt levels as key factors supporting its long-term performance.
On March 12, JP Morgan analyst Harlan Sur had also given a positive opinion on AMD’s 2025 growth potential but maintained a Neutral rating. He highlighted AMD’s expanding presence in data centers, enterprise, and client computing, expecting over 20% revenue growth, driven by server CPU gains, AI GPU growth, and improving market trends.
8. Marvell Technology Inc. (NASDAQ:MRVL)
Number of Billionaire Investors: 18
Billionaire Holdings: $2.1 billion
Number of Hedge Fund Holders: 105
Marvell Technology Inc. (NASDAQ:MRVL) is a leading semiconductor provider specializing in data infrastructure solutions across a range of industries, including data centers, enterprise networking, carrier infrastructure, consumer applications, and automotive and industrial markets. The company’s product portfolio includes custom Application-Specific Integrated Circuits (ASICs), electro-optics, Ethernet solutions, Fibre Channel adapters, processors, and storage controllers.
In a March 17 report, JP Morgan analyst Harlan Sur reaffirmed his Buy rating on Marvell (NASDAQ:MRVL) with a $130 price target, citing the company’s strong positioning in AI and cloud markets. The analyst highlighted that the company has secured major wins in its AI/cloud ASIC pipeline, including a high-volume AI XPU ASIC program with its largest customer, believed to be AWS. This partnership is expected to drive significant growth in its AWS ASIC business through 2025 and 2026. The analyst also believes that Marvell’s leadership in electro-optics, strong DSP market share, and expanding AI ASIC pipeline should further strengthen its growth potential. He sees the stock as well-positioned to outperform with steady AI ASIC and networking revenue growth and a recent stock pullback.
7. Applied Materials Inc. (NASDAQ:AMAT)
Number of Billionaire Investors: 18
Billionaire Holdings: $2.0 Billion
Number of Hedge Fund Holders: 80
Applied Materials Inc. (NASDAQ:AMAT) operates as the world’s largest wafer fabrication equipment manufacturer and is a leading provider of materials engineering solutions. The company is a direct beneficiary of advancements in AI and the increasing semiconductor content in connected devices.
Applied Materials (NASDAQ:AMAT) is leveraging its advanced equipment and materials engineering to drive semiconductor innovation. The company plays a key role in producing chips for data centers, AI, and cloud applications. With growing demand, it anticipates significant market expansion, particularly in advanced process technologies like Gate-All-Around and Backside Power Delivery.
In a recent report, Wells Fargo analyst Joseph Quatrochi recently reaffirmed a Buy rating on Applied Materials with a $205 price target, after the company cleared an authorization of a $10 billion share repurchase on March 10. Share repurchases are generally seen as positive as they reflect management’s confidence in future demand and cash flows. The company also raised its quarterly dividend by 15%, marking eight consecutive years of growth. The analyst believes these strategic moves highlight a shareholder-focused capital allocation strategy, a stable financial outlook and long-term growth potential.
6. Micron Technology Inc. (NASDAQ:MU)
Number of Billionaire Investors: 18
Billionaire Holdings: $1.0 Billion
Number of Hedge Fund Holders: 94
Micron Technology Inc. (NASDAQ:MU) designs, develops, manufactures, and markets memory and storage products, including dynamic random-access memory (DRAM), flash memory (NAND), solid-state drives (SSDs), and High Bandwidth Memory (HBM) globally. The company is well-positioned to capitalize on technological advancements in AI, 5G, autonomous vehicles, and data centers.
On March 20, the company reported strong revenue growth for Q2 2025, but its gross margin came in weaker, which weighed on its share price on March 21. Q2 revenue surged 38% YoY to $8.05 billion, which was ahead of consensus of $7.91 billion. Most importantly, HBM segment revenue surged over 50% sequentially, surpassing $1 billion in quarterly sales for the first time. Shipments exceeded expectations, reflecting strong execution and momentum in scaling production. Adjusted EPS grew to $1.56, which also came ahead of expectation of $1.43. However, its adjusted gross margins were 37.9%, which missed the consensus estimate of 38.4%.
Gross margin has taken some shine away from Q3 2025 guidance as well – the company guided for gross margin to decline sequentially to around 36.5% which was below street expectations. That said, rest of the guidance for Q3 2025 was strong – revenue in the quarter is expected to be around $8.8 billion and adjusted EPS at $1.57, both of which were ahead of consensus of $8.55 billion and $1.48, respectively. Micron Technology Inc. (NASDAQ:MU) continues to see strong demand for HBM and increased its HBM total addressable market (TAM) estimates for 2025 to over $35 billion. Overall, an impressive performance by the company, with the momentum expected to continue in the medium-term.
5. QUALCOMM Inc. (NASDAQ:QCOM)
Number of Billionaire Investors: 19
Billionaire Holdings: $2.6 Billion
Number of Hedge Fund Holders: 79
QUALCOMM Inc. (NASDAQ:QCOM) is a global leader in semiconductor technology, specializing in wireless communications. The company plays a crucial role in advancing 5G technology, supplying chipsets and system-on-chip solutions for mobile devices, automotive applications, and the Internet of Things (IoT). Its Snapdragon processors are widely used across smartphones and connected devices.
In early February, the company provided its Q2 2025 revenue outlook, projecting between $10.2 billion and $11.0 billion in revenue, with adjusted EPS expected to be between $2.70 and $2.90. The company also reaffirmed its goal of reaching $22 billion in non-handset revenues by 2029.
QUALCOMM Inc. (NASDAQ:QCOM) also reported strong Q1 2025 earnings, which exceeded market expectations. Total revenue rose 17% year-over-year to $11.7 billion, while net income reached $3.8 billion, reflecting a solid net margin of 27.3%. The company’s semiconductor division, Qualcomm CDMA Technologies (QCT), performed well across all key markets. Additionally, the Qualcomm Technology Licensing (QTL) segment posted a 20% revenue increase. Automotive and IoT segments also showed significant growth, with revenues increasing 61% and 36% year-over-year, respectively.
Despite these strong results, QUALCOMM faces potential challenges, including a slowdown in the smartphone market and licensing uncertainties with Huawei. However, analysts remain optimistic about the stock’s future. The median 12-month price target stands at $192, suggesting a potential 23% upside.
4. Lam Research Corp. (NASDAQ:LRCX)
Number of Billionaire Investors: 20
Billionaire Holdings: $3.5 Billion
Number of Hedge Fund Holders: 84
Lam Research Corp. (NASDAQ:LRCX) is a leading semiconductor equipment manufacturer that provides wafer fabrication equipment and services to the semiconductor industry. The company’s innovative systems for wafer etching and deposition are essential for the advanced nodes of semiconductor technology, enabling the creation of smaller and more efficient integrated circuits.
Lam Research Corp. (NASDAQ:LRCX) is poised to benefit from rising demand for high-performance computing and AI applications. The company’s investments in advanced technologies like Gate-All-Around transistors and EUV patterning give it a competitive edge. Additionally, its per-bit cost reduction efforts enhance memory efficiency, thus positioning it for growth in the expanding semiconductor market.
In mid-February, Needham analyst Charles Shi reaffirmed his bullish outlook on Lam Research Corp. (NASDAQ:LRCX), maintaining a Buy rating with a price target of $96. His optimism stems from the company’s recently announced long-term financial targets for 2028 and 2030, which were presented at the 2025 Investor Day. While acknowledging potential risks, the analyst believes that the company is well-positioned to achieve its goals, even if upside potential remains somewhat constrained. A key highlight of the company’s strategy is its ambitious gross margin target of 50%, which he viewed positively. Additionally, the company’s disciplined approach to operational expenditures and conservative share buyback strategy are expected to drive earnings growth.
3. Broadcom Inc. (NASDAQ:AVGO)
Number of Billionaire Investors: 25
Billionaire Holdings: $14.5 billion
Number of Hedge Fund Holders: 161
Broadcom Inc. (NASDAQ:AVGO) is a semiconductor company that designs, develops and supplies a broad range of semiconductor and infrastructure software solutions. Its products are used in end products such as enterprise and data center networking, including AI networking and connectivity, home connectivity, broadband access, smartphones and base stations, data center servers and storage systems, and factory automation.
Following the results, Morgan Stanley analyst Joseph Moore increased Broadcom Inc. (NASDAQ:AVGO) price target from $246 to $260 and reiterated an Overweight rating. The analyst believes the quarter should ease concerns following disappointing performance by one of the peers. He highlighted the company’s over 40% quarter-over-quarter growth in Ethernet AI as a key strength from the results. Additionally, the company highlighted two potential long-term customers for its custom xPU solutions, reinforcing its growth outlook.
Around the same time, a Truist Securities analyst also raised the price target from $260 to $267 and maintained his Buy rating in a post-results note. Notwithstanding the healthy Q1 outperformance, Q2 guidance relied on AI-driven growth offsetting softness elsewhere. The analyst was also positive after management reported four potential customers that could drive annual sales growth beyond 30%.
2. NVIDIA Corp. (NASDAQ:NVDA)
Number of Billionaire Investors: 29
Billionaire Holdings: $33.2 billion
Number of Hedge Fund Holders: 223
NVIDIA Corp. (NASDAQ:NVDA) stands as a leading innovator in the design and production of graphics processing units (GPUs), system-on-a-chip (SoC) solutions, and AI-driven hardware and software. The company’s GPUs are essential to high-performance computing, AI training, and inference, serving as the backbone of data center infrastructure worldwide. Its cutting-edge technology continues to drive advancements in artificial intelligence, deep learning, and data analytics, reinforcing the company’s pivotal role in shaping next-generation computing.
NVIDIA Corp. (NASDAQ:NVDA) hosted its GTC AI conference from March 17-21, leaving analysts optimistic about its growth outlook. The company unveiled a roadmap for its next three product generations, each offering significant performance improvements. It also projected substantial growth in Data Center revenue, estimating at least $450 billion by 2028, fueled by $1 trillion in Data Center capital expenditures, i.e. more than double the $200 billion expected in 2025.
Buoyed by the same optimism, Mizuho Securities analyst Vijay Rakesh reaffirmed a Buy rating on the company with a $168 price target in a March 20 report, citing the company’s strong market positioning and growth potential. The analyst noted that the company’s GTC conference highlighted its leadership in AI hardware and software, along with a solid roadmap for expansion, particularly in data centers. Key product launches, including the Vera Rubin Ultra and Feynman, are expected to drive significant performance gains. Strong cloud orders and partnerships with major providers indicate robust revenue prospects, with orders projected to double by 2025. The analyst was further enthused by innovations like Spectrum-X and Quantum-X which reinforce NVIDIA’s dominance in AI, enterprise solutions, and robotics, positioning it for sustained growth.
Notably, we also featured NVIDIA Corp. (NASDAQ:NVDA) as one of our top picks in our articles on ‘Growth at a Reasonable Price (GARP)’ stocks and ‘20 Best Data Center stocks’. The full articles, published on March 10 and 13, respectively, can be accessed by clicking on the links.
1. Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)
Number of Billionaire Investors: 30
Billionaire Holdings: $14.6 Billion
Number of Hedge Fund Holders: 186
Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) is the world’s largest and most advanced semiconductor foundry. As opposed to the integrated device manufacturers (IDMs) such as Intel, TSMC operates exclusively as a pure-play foundry, and does not design its own chips but focuses on high-performance semiconductor fabrication. It plays a crucial role in the global technology supply chain by manufacturing chips for major companies, including Apple, NVIDIA, AMD, and Qualcomm.
There were interesting developments in the recent months for the company. Paul Liu, head of Taiwan’s National Development Council (NDC) and board member of Taiwan Semiconductor Manufacturing Ltd. (NYSE:TSM) dismissed the recent speculations that TSM was considering acquiring Intel’s foundry business. In fact, he clarified that the topic had never been discussed at the board level.
Additionally, there were concerns over TSM’s long-term business prospects in Taiwan after the company announced another $100 billion in the US. However, officials have downplayed such concerns and attributed the investments to global expansion rather than shifting business from Taiwan.
Underpinning the long-term outlook of TSM, in its Q4 2024 Baron Emerging Markets Fund investor letter, investment management company Baron Funds highlighted TSM as a key contributor to its Emerging Markets Fund. The company benefited from a cyclical semiconductor recovery and rising demand for AI chips. The fund remains confident in TSM’s strong market position, citing its technological leadership, pricing power, and exposure to high-growth industries such as AI, high-performance computing, automotive, 5G, and the Internet of Things. These factors are expected to drive sustained double-digit earnings growth in the coming years, reinforcing TSM’s long-term potential.
The stock remains a consensus Buy with most of the analysts having a positive opinion on TSM’s long-term outlook. In February, Needham analyst Charles Shi had reiterated his Buy rating with $225 price target, implying a 27% upside potential.
While we acknowledge the potential of TSM to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TSM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
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