12 Small-Cap Semiconductor Stocks to Buy Now

1. Wolfspeed Inc. (NYSE:WOLF)

Market Capitalization: $829 million

Number of Hedge Funds: 26

Wolfspeed Inc. (NYSE:WOLF) specializes in manufacturing silicon carbide (SiC) and gallium nitride (GaN) wide bandgap semiconductor solutions, primarily serving the electric vehicle (EV), renewable energy, power supplies, and industrial markets. Its product families include power devices and silicon carbide and gallium nitride (GaN) materials.

On January 29, 2025, Wolfspeed Inc. (NYSE:WOLF) reported its Q2 2025 (FY ending June 2025) earnings results. Revenue for the quarter declined 13% year-over-year (YoY) to $181 million due to weakness in Industrial & Energy end-markets and inventory adjustments from Materials customers. As construction work winds down at its John Palmour manufacturing facility, capex is expected to sharply decrease to around $300 million in FY 2026, down from around $1.1-1.3 billion guided capex in FY 2025.

The company has access to $2.5 billion in funding (including funds from the U.S. CHIPS Act) to support its U.S. capacity expansion plan. Wolfspeed Inc. (NYSE:WOLF)’s growth outlook remains robust as it continues to invest in increasing production capacity, such as the Mohawk Valley Fab, and expanding the materials factory in Durham, North Carolina, and constructing a new materials manufacturing facility in Siler City, North Carolina.

While we acknowledge the potential of WOLF 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 WOLF 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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