The semiconductor industry is a crucial pillar of global technological development, providing essential components for various industries, from consumer electronics to industrial automation. Despite its long-term growth potential and innovation, several semiconductor companies underperformed significantly in 2024. These companies were impacted by internal and external factors such as geopolitical tensions and changing regulatory landscapes. For 2024, even the broader Philadelphia Semiconductor Index (SOX), which tracks the performance of the largest U.S.-traded semiconductor companies, returned 19.2%, lagging behind the S&P 500 Index’s 23% return.
In a mid-2024 CNBC interview, Stacey Rasgon, Managing Director at Bernstein Research, highlighted that U.S. semiconductor companies are at a disadvantage due to these restrictions, potentially limiting their growth and competitiveness in the global market. He also attributed uncertainties in Taiwanese businesses to comments from Mr. Trump, the then-presidential candidate, regarding Taiwan.
Certain sectors within the semiconductor industry also faced weaker-than-expected demand in 2024, particularly in consumer electronics and traditional automotive sectors. Despite strong growth prospects in AI, data centers, and automotive technologies, companies more exposed to legacy industries experienced slower demand, leading to weaker earnings. Deloitte’s 2025 global semiconductor industry outlook described this as a “tale of two markets”: companies in the generative AI chip market outperformed, while those without exposure (such as automotive, computer, smartphone, and communications semiconductor companies) underperformed.
While the long-term outlook for the semiconductor sector remains positive, short-term volatility and external challenges are creating headwinds for many companies. Companies most exposed to geopolitical tensions, regulatory shifts, and supply chain issues are likely to experience continued underperformance. With that in mind, let’s take a closer look at the 10 most oversold semiconductor stocks in 2024.
A close-up of a technician’s hands working on an advanced semiconductor substrate.
Our Methodology
To determine the 10 most oversold semiconductor stocks in 2024, we began by shortlisting all U.S.-listed semiconductor companies with a current market price of over $10 to avoid penny stocks. From these stocks we filtered the stocks which posted negative returns in 2024. We then ranked the bottom 10 companies in descending order based on their 2024 performance. Additionally, we included data on hedge fund holdings in these companies as of Q4 2024 to provide further insight into investor interest.
Note: All pricing data is as of market close on February 19.
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10 Most Oversold Semiconductor Stocks in 2024
10. Vishay Intertechnology Inc. (NYSE:VSH)
Share price return in 2024: -28%
Number of Hedge Fund Holders: 31
Vishay Intertechnology Inc. (NYSE:VSH) is a manufacturer of discrete semiconductors and passive electronic components that cater to innovative designs in various sectors, including automotive, industrial, computing, consumer, telecommunications, military, aerospace, and medical markets. Their semiconductor products encompass MOSFETs, diodes, and optoelectronic components, while their passive components include resistors, inductors, and capacitors. These products serve a multitude of functions such as power control, conversion, and management, signal switching, routing, blocking, current flow regulation, voltage surge suppression, energy storage, and discharge.
In 2024, Vishay Intertechnology Inc. (NYSE:VSH)’s share price declined by 28%, with the most significant drop of 36% occurring between August and mid-November. This decline was attributed to weaker Q1 2024 results, highlighting reduced momentum in industrial and automotive end markets due to customer inventory adjustments. Additionally, softness in MOSFETs, diodes, optoelectronics, resistors, and capacitor product lines contributed to the negative sentiment. Revenue declined across all end markets, resulting in a 14.3% year-over-year (YoY) decrease in total revenue for Q1 and a 72% drop in EPS to $0.22.
Following these results, Vishay Intertechnology Inc. (NYSE:VSH) focused on its strategic growth levers by investing in catch-up capacity, strengthening customer relationships, and advancing its silicon carbide strategy to prepare for the next demand upcycle. The company’s strong market position, particularly in the industrial and automotive segments, is anticipated to provide robust growth opportunities in the coming years. After ending 2024 on a negative note, Vishay Intertechnology Inc. (NYSE:VSH) shares have gained 13% in 2025. That said, analysts still appear bearish on the name as consensus shows a potential for 6% downside from current levels, as of February 19.
9. ChipMOS Technologies Inc. (NASDAQ:IMOS)
Share price return in 2024: -30%
Number of Hedge Fund Holders: 2
ChipMOS Technologies Inc. (NASDAQ:IMOS), a Taiwan-based company, provides semiconductor testing and packaging solutions to fabless companies, integrated device manufacturers (IDM), and foundries. The company offers a comprehensive range of back-end testing services for high-density memory, mixed-signal, and display driver semiconductors.
In 2024, ChipMOS Technologies Inc. (NASDAQ:IMOS) saw its share price rise by approximately 20% by March 21. However, the share price experienced a consistent decline afterward, ultimately losing over 30% by year-end. Concerns regarding Taiwan’s geopolitical tensions with China, the potential for invasion, renewed trade wars, higher tariffs, export restrictions, and escalating U.S.-China tensions impacted the stock. Additionally, the company’s quarterly revenue and profit faced sequential contractions due to seasonal customer inventory corrections and a weaker consumer end-market, raising concerns about growth momentum.
Despite near-term challenges, ChipMOS Technologies Inc. (NASDAQ:IMOS) is well-positioned in the long term to benefit from the continuous growth of the semiconductor industry, driven by demand for memory chips, mobile devices, and automotive applications. The stock has managed to recover by around 10% in 2025 so far.
