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.
8. Synaptics Inc. (NASDAQ:SYNA)
Share price return in 2024: -31%
Number of Hedge Fund Holders: 27
Synaptics Inc. (NASDAQ:SYNA) is a global developer and fabless supplier of premium mixed-signal semiconductor solutions that enable interaction with connected devices and data. The company provides connectivity, sensors, and AI-enhanced processor solutions to OEMs that design IoT products and devices for automobiles, enterprise workspace devices, and consumer devices. It serves markets including IoT, personal computers (PCs), enterprise and automotive sectors, and mobile devices. The company’s innovative solutions for fingerprint sensors, OLED displays, and touchscreens have been increasingly in demand as more industries, particularly automotive and mobile, adopt advanced interactive technologies.
In 2024, Synaptics Inc. (NASDAQ:SYNA) encountered several operational challenges, including a decline in demand and a reduction in customer inventory. Revenue for the nine months ending March 2024 declined by 37%, with decreases in revenue from its Enterprise and Automotive products and Core IoT product applications. The company’s share price consistently declined throughout the year, resulting in a 31% YTD loss. As the business stabilizes and works towards recovery, the share price remains down 3.6% in 2025. After the recently released in-line Q2 2025 results (FY ending June), a Mizuho analyst maintained his Buy recommendation with a price target of $90, down from $95 earlier. The analyst believes that the results indicate that trends are improving and the company is moving past its low point.
7. IPG Photonics Corp. (NASDAQ:IPGP)
Share price return in 2024: -32%
Number of Hedge Fund Holders: 31
IPG Photonics Corp. (NASDAQ:IPGP) is engaged in the development, manufacturing, and sale of high-performance fiber lasers and diode lasers for various applications, mainly in materials processing, medical, and advanced applications. The company markets its products globally to OEMs, system integrators, and end users.
The company’s share price declined by approximately 15% following the announcement of its Q4 2023 results on February 13, 2024. Despite reporting better-than-expected results, the outlook for 2024 was weak. The company faced ongoing soft industrial demand in many major regions and lower sales in e-mobility applications in China. In Q1 2024, management highlighted delayed investments in electric battery capacity worldwide, soft industrial demand across most major geographies, and inventory management by some large OEM customers as factors affecting its performance.
The increasing demand for precision cutting, welding, and material processing across industries, particularly in the automotive and aerospace sectors, offers solid growth opportunities for IPG. However, the company has yet to see meaningful changes in trends. On February 11, the company announced its Q4 2024 results, reporting a 22% YoY decline in sales to $234 million, although sales were up 1% quarter-over-quarter. Following the results, a Citi analyst reiterated a Sell rating with a $62 price target for IPG Photonics Corp. (NASDAQ:IPGP) stock despite the stock trading near its 52-week low. The share price is down 11% so far in 2025.
6. Aehr Test Systems Inc. (NASDAQ:AEHR)
Share price return in 2024: -33%
Number of Hedge Fund Holders: 15
Aehr Test Systems Inc. (NASDAQ:AEHR) provides advanced solutions for testing, burning-in, and stabilizing semiconductor devices in wafer level, singulated die, and package part form. The company’s focus includes high-performance semiconductor devices for applications such as electric vehicles, EV charging infrastructure, solar and wind power, computing, data and telecommunications infrastructure, and solid-state memory storage.
Aehr Test Systems Inc. (NASDAQ:AEHR) experienced considerable volatility in its share price throughout 2024. The year began with a share price of $24.95, which plummeted by 40% in January alone, reaching $14.7. This decline was primarily due to a weaker outlook, as the company reduced its 2024 revenue guidance from at least $100 million to a range of $75 million to $85 million. Management also observed that the slowing growth in the electric vehicle market appeared to be negatively affecting the timing of both current and new customer orders, as well as planned capacity increases for silicon carbide devices. The share price dropped another 30% by mid-April, touching the year’s low of around $10.3. For the rest of the year, the share price fluctuated widely between $20.6 and $10, ending the year at $16.6.
In 2025, Aehr Test Systems Inc. (NASDAQ:AEHR) saw its share price further decline by 25%, mainly because of the Q2 FY 2025 results that fell short of street expectations. Notwithstanding, an analyst from Craig Hallum lowered his price target on the shares to $19 from $25, yet maintained his Buy rating, encouraged by the company’s execution and reiteration of full-year guidance.
5. Microchip Technology, Inc. (NASDAQ:MCHP)
Share price return in 2024: -34%
Number of Hedge Fund Holders: 44
Microchip Technology, Inc. (NASDAQ:MCHP) specializes in manufacturing embedded control solutions, including microcontrollers, mixed-signal, analog, and Flash-IP integrated circuits. The company generates approximately 18%-20% of its revenue from the Data Center & Computing end market. It offers a comprehensive portfolio of data center solutions designed to enhance server storage performance, reliability, and security, while also reducing overall power consumption. These solutions include Flashtec NVMe controllers, 24G SAS technology-based SmartRoc products for storage, and PCIe Gen 5 technology products for high bandwidth and flexibility in data centers.
In 2024, Microchip Technology, Inc. (NASDAQ:MCHP) experienced a 34% decline in its share price, mainly due to continued revenue growth pressures. The company faced weaker demand across its end markets, particularly in the industrial and automotive sectors. It also dealt with inventory build-up at customers, as they remained cautious amid a weak macro environment for manufacturing, high interest rates, very short lead times, and an uncertain business outlook.
At the beginning of December 2024, Microchip Technology, Inc. (NASDAQ:MCHP) announced a restructuring plan and updated its guidance in response to the excess inventory and overcapacity situation. While the company now expects its December 2024 quarter revenue to be at the lower end of their guidance, they also announced the closure of their Tempe wafer fabrication facility (fab) by September 2025. Although this move will result in $90 million in annual cash savings, it is overall negative for the near-term outlook due to the pressure on the business and the time required to ramp up capacity during recovery periods. The company has seen its share price rise by around 11% so far in 2025.
4. Qorvo Inc. (NASDAQ:QRVO)
Share price return in 2024: -36%
Number of Hedge Fund Holders: 37
Qorvo Inc. (NASDAQ:QRVO) focuses on the development and commercialization of technologies and products for wireless, wired, and power markets. The company’s primary offerings include radio frequency (RF) products, analog mixed-signal solutions, power management solutions, connectivity, and sensor solutions.
In 2024, Qorvo Inc. (NASDAQ:QRVO) faced weaker growth due to customer inventory corrections, leading to 36% correction through the year. Although there has been some improvement in inventory levels in recent quarters, demand in various end markets has not fully recovered, which, along with macroeconomic headwinds, has affected revenues. The share price experienced significant corrections following nearly every quarterly result announced by the company in 2024. The latest results, released on January 28, showed some improvement in revenue and profitability trends. However, most analysts continue to maintain a cautious view on Qorvo Inc. (NASDAQ:QRVO). Analysts from Mizuho, Barclays, and KeyBanc recently reiterated their Neutral/Hold ratings after the quarterly results. The stock is up 13% YTD in 2025.
3. Axcelis Technologies Inc. (NASDAQ:ACLS)
Share price return in 2024: -44%
Number of Hedge Fund Holders: 27
Axcelis Technologies, Inc. (NASDAQ:ACLS) specializes in designing, manufacturing, and servicing ion implantation systems used in semiconductor chip fabrication.
With the semiconductor industry’s ongoing transition towards advanced node fabrication and the rising demand for cutting-edge chips, Axcelis Technologies Inc. (NASDAQ:ACLS) is poised to benefit from increased investment in semiconductor manufacturing. The company’s leadership in providing innovative equipment for the industry’s most advanced chips, especially in high-growth sectors like artificial intelligence, 5G, and automotive, positions it well for future growth.
However, in 2024, the semiconductor industry faced a weaker phase due to customer inventory indigestion, which also affected Axcelis Technologies Inc. (NASDAQ:ACLS) as a supplier. While the stock performed well in the first half of 2024, it consistently declined in the second half, losing 44% of its value over the full year.
The stock continued to weaken, declining by around 9% in 2025 as well. The company recently projected that new interim final rules from the U.S. Department of Commerce Bureau of Industry and Security (BIS) regarding semiconductor equipment exports to China could potentially reduce its total annual revenue by $20 million to $50 million in 2025. Despite this near-term headwind, Axcelis Technologies Inc. (NASDAQ:ACLS) has robust growth drivers to support its long-term trajectory.
2. STMicroelectronics N.V. (NYSE:STM)
Share price return in 2024: -48%
Number of Hedge Fund Holders: 22
STMicroelectronics N.V. (NYSE:STM) produces a wide array of analog, digital, and mixed-signal integrated circuits (ICs) and discrete devices for industrial, automotive, consumer electronics, and communication markets.
In 2024, STMicroelectronics N.V. (NYSE:STM) experienced a near 50% drop in its share price, largely due to persistent weakness in the automotive and industrial end markets, which negatively impacted the company’s overall financial performance. The stock declined by 13% up until mid-July, but the situation worsened significantly following weaker Q2 2024 results and a grim outlook across its major segments. The Industrial segment revenue declined by over 50%, Automotive by about 15%, and Personal Electronics by approximately 6%. Management’s comments were also pessimistic, highlighting that customer orders for Industrial did not improve and Automotive demand decreased during the quarter, contrary to their previous expectations.
Analysts maintain a broadly cautious view on STMicroelectronics N.V. (NYSE:STM), with the consensus still predicting an 8% downside. However, on February 18, Jefferies upgraded the stock to Buy from Hold and raised their price target. The analyst sees minimal downside to consensus estimates from this point and anticipates growth acceleration in the second half of 2025 due to post-inventory correction normalization, industrial demand recovery, and increased semiconductor content in new iPhone versions. The stock has risen by 6% so far this year.
1. Intel Corp. (NASDAQ:INTC)
Share price return in 2024: -58%
Number of Hedge Fund Holders: 83
Intel Corp. (NASDAQ:INTC) is a global leader in the design and manufacturing of microprocessors and semiconductor components. The company’s products power a wide range of computing devices, from personal computers to data centers and Internet of Things (IoT) applications. Intel is renowned for its innovation in CPU architecture and process technology.
Over the last decade, Intel Corp. (NASDAQ:INTC) has been consistently losing market share to competitors, particularly Advanced Micro Devices Inc.(NASDAQ:AMD). Although the management implemented a turnaround plan, the execution was subpar, leading to continued market share loss. In 2024, Intel Corp. (NASDAQ:INTC) shares lost nearly 60% of their value, placing the management in a difficult position. However, 2025 has been a bright spot for the company, with the stock price rising 28%. Unfortunately, this rise could be attributed more to strategic options rather than resolving execution issues.
One such development occurred on February 15, when Bloomberg reported that Taiwan Semiconductor Manufacturing Company (NYSE:TSM) is considering acquiring Intel Corp. (NASDAQ:INTC)’s U.S. manufacturing facilities. This proposal follows suggestions from the Trump administration to Taiwan Semiconductor Manufacturing Company (NYSE:TSM) to bolster American manufacturing capabilities. However, another report from Reuters indicates that some officials have expressed reservations about a foreign entity operating Intel Corp. (NASDAQ:INTC)’s U.S. factory. These discussions are in preliminary stages, and no formal agreements have been reached. Additionally, speculation about Intel’s potential breakup into parts and spin-offs has been circulating, contributing to a 24% rally in Intel’s share price within one week.
While we acknowledge the potential of INTC 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 INTC 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 Complete List of 59 AI Companies Under $2 Billion in Market Cap.
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