10 Semiconductor Stocks to Buy Under $50

Published March 4, 2022 at 10:18 am EST Updated September 7, 2026 at 2:02 pm EDT

In this article, we discuss the 10 semiconductor stocks to buy under $50.

Semiconductor chips power every smart device we can think of — from smartphones and laptops to LEDs and car infotainment systems. Therefore, it only makes sense that the industry around this digital-age commodity would be receiving billions of dollars in investment to cope up with the ever-increasing demand. In February, the US government passed the America Competes Act, which is an attempt to boost the semiconductor industry in America and invest in scientific research and development. $52 billion of American taxpayer money will be used for this critical purpose.

Semiconductor Industry Outlook for 2022

In 2022, semiconductor sales are expected to exceed $600 billion for the first time ever, according to the World Semiconductor Trade Statistics. Even though 2021 was a year of chip shortages amid grueling supply chain issues, the semiconductor industry grew 26% in the year. All of this goes to show the dependence of the digital world, and that of its future evolution, on the semiconductor industry.

Therefore, it would be wise to know which names in the market are ones worth buying, and which are worth buying cheap. Some of the top semiconductor companies include Intel Corporation (NASDAQ:INTC), Amkor Technology, Inc. (NASDAQ:AMKR), Advanced Micro Devices, Inc. (NASDAQ:AMD) and NVIDIA Corporation (NASDAQ:NVDA).

Let’s now take a look at the best semiconductor stocks to buy under $50.

10 Semiconductor Stocks to Buy Under $50

Photo by Slejven Djurakovic on Unsplash

Our Methodology

We picked semiconductor stocks that received positive analyst ratings, had solid business fundamentals, and boasted long-term growth potential. Hedge fund sentiment around each stock is derived from Insider Monkey’s database of 924 elite hedge funds and is given to provide readers with an understanding of investor confidence.

10 Semiconductor Stocks to Buy Under $50

10. Pixelworks, Inc. (NASDAQ:PXLW)

Number of Hedge Fund Holders: 15

Share Price (as of March 1): $3.15

Starting off our list is Pixelworks, Inc. (NASDAQ:PXLW), a maker of semiconductors and software solutions used in smartphones, tablets, and projectors. Its list of many clients includes OnePlus, a Chinese smartphone giant which uses the firm’s Pro Software solution in its OnePlus 10 Pro smartphone to enhance color accuracy. The iQOO 9 series smartphone by phone-maker Vivo has also incorporated the Pixelworks X5 Pro visual processor, which is designed to enhance users’ competence during heavy smartphone games.

On January 18, Colliers analyst Derek Soderberg upgraded Pixelworks, Inc. to ‘Buy’ from ‘Neutral’ and set a $5 price target. Soderberg sees the firm’s position in 2022 as ‘too good to ignore’, and believes that a more favorable supply chain environment will boost its mobile business, whilst allowing an accelerated recovery for its projector business, which had suffered during the pandemic.

The fourth quarter’s EPS for Pixelworks, Inc. was recorded at -$0.03, above estimates by $0.02. Quarterly revenue also outperformed estimates by $113,000, coming in at $16.59 million.

Hedge fund sentiment was up on Pixelworks, Inc. at the close of the fourth quarter, where 15 hedge funds held stakes in the firm, as compared to 12 hedge funds in the preceding quarter. Millennium Management of Israel Englander was a leading shareholder in Pixelworks, Inc. during Q4 2021, holding 1.68 million shares worth $7.4 million.

In addition to Intel Corporation, Advanced Micro Devices, Inc. and NVIDIA Corporation, Pixelworks, Inc. is a top semiconductor stock to buy.

9. Sequans Communications S.A. (NYSE:SQNS)

Number of Hedge Fund Holders: 9

Share Price (as of March 1): $3.69

Sequans Communications S.A. (NYSE:SQNS) is next up on our list of the best semiconductor stocks to buy under $50. The firm offers 5G and 4G semiconductor chips, as well as modules for non-smartphone devices for the broadband and Internet of Things (IoT) markets around the world. It is based in Paris, France.

On February 16, B. Riley analyst Craig Ellis maintained a ‘Buy’ rating on Sequans Communications S.A. shares and lowered the price target to $8 from $11. Ellis attributed the price target reduction to multiple compression and sees the firm has an 88% potential upside.

Reporting its fourth-quarter earnings on February 8, Sequans Communications S.A. posted an EPS of -$0.09, which was in line with estimates. Revenue of $13.81 million for the quarter was also above analysts’ forecasts by $119,000.

Sequans Communications S.A. recently announced the expansion of its existing 4G/5G licensing agreements with Renesas Electronics Corporation (OTCPK:RNECY). This deal will allow Sequans’ to boost its addressable market to India with its Monarch 2 and Taurus 5G platforms.

As of the fourth quarter, 9 out of 924 elite funds tracked by Insider Monkey held stakes in Sequans Communications S.A., with a combined value of $50.34 million. The same number of hedge funds were bullish on the company in the preceding quarter. Of these 9 hedge funds, Lynrock Lake was the top shareholder of Sequans Communications S.A. in Q4 2021, with 4.48 million shares valued at $21.25 million, signaling a 9% increase in holding from the previous quarter.

Investment firm Roubaix Capital LLC mentioned Sequans Communications S.A. in its Q4 2020 investor letter, stating:

“As was the case during 2020, we expect our returns to be driven by the breadth of our positions. While Anterix offers a unique investment that will benefit primarily from utilities creating private high speed data networks, demand for high speed data is clearly a much larger, and dare say ubiquitous, trend that will be evident in the years ahead. There are many ways to invest behind this, but in small cap equities we see Sequans (SQNS) as a particularly strong beneficiary. For years, the company has focused on developing the semiconductor technology that is uniquely suited to enabling these networks. Specifically, Sequans chips use less power and are lower cost, two basic parameters that differentiate their products from more expensive and power-hungry chip architecture that is rooted in the current PC and handset markets. The end markets Sequans is focused on are expected to grow over 40% and the company anticipates rising market share. The company’s growth this year will take profitability to break-even levels and they see a roadmap to over 20% operating margins as revenues scale over the medium term. The company’s goals would imply an earnings rate nearing $1.00 in 2023, which, if achieved, would drive the stock materially higher.”

8. Valens Semiconductor Ltd. (NYSE:VLN)

Number of Hedge Fund Holders: 2

Share Price (as of March 1): $6.41

Valens Semiconductor Ltd. (NYSE:VLN) is an Israeli firm that deals in semiconductor products, including transmitters and receivers, that allow high-speed video and data transmission, and are used in the audio-video and automotive industries.

In November last year, BofA analyst Vivek Arya initiated coverage of Valens Semiconductor Ltd. with a ‘Buy’ rating and price target of $12. Arya holds that the firm’s connectivity chips operate in a market worth $9 billion and that it is a leader and an early-mover in the latest MIPI A-PHY standard used for connectivity in autonomous driving systems, in-vehicle infotainment, and advanced driver assistance systems. Arya also expects Valens Semiconductor Ltd. to post a 40% compound annual growth rate (CAGR) in sales from 2021 to 2024, on the back of 10x growth in auto sales.

In January, Valens Semiconductor Ltd. announced a partnership with Stoneridge (SRI) to introduce connectivity solutions to address safety issues for trucks and trailers. This includes vision and safety systems for the trucking industry. Since 2020, both firms have been working towards building a long-reach connectivity solution that delivers high quality, zero-latency, error-free video.

Out of all the hedge funds tracked by Insider Monkey, 2 were long Valens Semiconductor Ltd. in the fourth quarter, the same number as the quarter before.

7. Amtech Systems, Inc. (NASDAQ:ASYS)

Number of Hedge Fund Holders: 9

Share Price (as of March 1): $9.91

Amtech Systems, Inc. (NASDAQ:ASYS) makes equipment and tools used in the semiconductor and automotive industries, including silicon wafers, silicon carbide (SiC), sapphire substrates, high-temp belt furnaces, and various glass and silica components. These products are also used in developing electronic assemblies, and light-emitting diodes (LEDs).

On February 15, Cowen analyst Jeffrey Osborne maintained an ‘Outperform’ rating on Amtech Systems, Inc. shares, and revised the price target to $16 from $17, noting that growing adoption of electric vehicles has been increasing demand across the firm’s product lines.

Amtech Systems, Inc.’s (NASDAQ:ASYS) EPS for the fourth quarter stood at $0.07, in line with consensus estimates. The firm raked in $27.33 million in revenue for Q4, beating analysts’ forecasts by $2.86 million.

Out of the 924 hedge funds tracked by Insider Monkey in the fourth quarter of 2021, 9 were bullish on Amtech Systems, Inc., with combined holdings of $38.3 million. This is the same number of hedge funds as the quarter before. Brian Olson held the biggest stake in Amtech Systems, Inc. in Q4 2021, comprising 2.25 million shares worth $22.23 million.

6. Himax Technologies, Inc. (NASDAQ:HIMX)

Number of Hedge Fund Holders: 20

Share Price (as of March 1): $11.04

Himax Technologies, Inc. (NASDAQ:HIMX) provides semiconductor products related to display imaging processing technologies. Products by Himax Technologies, Inc. are used in a range of end markets, including smartphones, TVs, car navigation systems, and virtual reality (VR) headsets.

Automotive sales were an excellent driver of growth for Himax Technologies, Inc., posting a 110% increase in 2021, and with this revenue set to double in 2022. Himax Technologies, Inc. also commands a 40% share of the global automobile display-driver market, making it perfectly poised to enjoy future growth as more cars around the globe adapt touch-display screens.

Himax Technologies, Inc. posted fourth-quarter revenue of $452 million, which showed a 64% increase from the year-ago period. EPS for Q4 stood at $0.85, beating analysts’ forecasts by $0.06. The company’s segments for smartphones and tablets generated a collective revenue of $177 million in Q4, showing 30% year-on-year growth in revenue. This was despite chip shortages which led to products being delivered only to select smartphone customers. Himax Technologies, Inc. controlled an impressive 35% of the market for tablet display drivers in Q4 2021, and its market share for LCD smartphone displays came in at 9%.

Investors were keen on the potential of Himax Technologies, Inc. in the fourth quarter of 2021, with 20 hedge funds long on the company shares, in comparison to 18 hedge funds in the preceding quarter. Yiheng Capital held the biggest stake in Himax Technologies, Inc., with 8.9 million shares worth $142.42 million

Along with Intel Corporation, Advanced Micro Devices, Inc. and NVIDIA Corporation, Himax Technologies, Inc. is a semiconductor stock on the radar of investors.

5. Vishay Intertechnology, Inc. (NYSE:VSH)

Number of Hedge Fund Holders: 31

Share Price (as of March 1): $18.38

Up next is Vishay Intertechnology, Inc. (NYSE:VSH), a US-based maker of discrete semiconductors and passive electronic components. In February, Matthew Sheerin, an analyst at research firm Stifel, reiterated a ‘Buy’ rating on Vishay Intertechnology, Inc. shares.

Vishay Intertechnology, Inc. is expected to see growth from the boom in electric vehicles and 5G technology. Its revenue for Q4 was $843.07 million, above analysts’ forecasts by $18.60 million. EPS was in-line with estimates, standing at $0.62.

In December, Vishay Intertechnology, Inc. agreed to acquire Barry Industries for $21 million, in a deal that will expand its expertise in high power resistor and high-frequency technologies.

Investors were seen buying into Vishay Intertechnology, Inc., as 31 hedge funds held stakes in the firm in the fourth quarter, up from 28 hedge funds in the preceding quarter. With 3.8 million shares worth roughly $85 million, Royce & Associates was the top shareholder of Vishay Intertechnology, Inc. in the fourth quarter.

4. Amkor Technology, Inc. (NASDAQ:AMKR)

Number of Hedge Fund Holders: 21

Share Price (as of March 1): $21.44

Amkor Technology, Inc. makes semiconductor packaging and test technology solutions and is based in the United States. These include semiconductor wafer bump, wafer probe, package design, and test and drop shipment services. The firm was given a ‘Buy’ rating by Sidoti analyst Chrishan Anketell in December.

In November last year, Amkor Technology, Inc. agreed to build a smart factory in Vietnam, for which the first-phase investment will range between $200 million and $250 million. This site will enable allow high-volume production by the second half of 2023, while the first phase of production is expected to start this year.

As of the fourth quarter, 21 out of 924 hedge funds tracked by Insider Monkey held stakes in Amkor Technology, Inc., with a combined value of $216 million.

Amkor Technology, Inc. reported earnings per share of $0.88 for the fourth quarter, which beat analysts’ estimates by $0.22. Quarterly revenue of $1.72 billion also outperformed estimates by $77.24 million.

3. ChipMOS TECHNOLOGIES INC. (NASDAQ:IMOS)

Number of Hedge Fund Holders: 5

Share Price (as of March 1): $36.05

ChipMOS TECHNOLOGIES INC. (NASDAQ:IMOS) is a Taiwanese company that offers semiconductor testing and packaging solutions, as well as high-integration and high-precision integrated circuits. As of March 1, ChipMOS TECHNOLOGIES INC. saw its share price gain 32.39% in the last 12 months, and 2.62% year to date.

ChipMOS TECHNOLOGIES INC. has enjoyed the recent boom in the semiconductor market, and its revenue for 2021 was $987.7 million, up 19.1% year-on-year. Fourth-quarter revenue stood at $244.8 million, also posting a healthy increase of 7.6% from the prior-year period.

5 hedge funds had long positions in ChipMOS TECHNOLOGIES INC. at the close of the fourth quarter, holding stakes with a combined value of $57.6 million. The same number of hedge funds held stakes in the chipmaker in the previous quarter.

2. STMicroelectronics N.V. (NYSE:STM)

Number of Hedge Fund Holders: 15

Share Price (as of March 1): $40.45

STMicroelectronics N.V. (NYSE:STM) is a Swiss company that deals in the production and sale of semiconductor products.

In January, Craig-Hallum analyst Anthony Stoss kept a ‘Buy’ rating on STMicroelectronics N.V. shares, noting that the semiconductor firm was one of the best ways to make an EV play. Analyst Tristan Gerra of research firm Baird also had a bullish assessment of STMicroelectronics N.V., noting that the firm is enjoying strong demand and is likely to raise prices in 2022. He had an ‘Outperform’ rating on the stock, and a price target of $62, up from $50.

In February, STMicroelectronics N.V. announced the launch of a new family of high-resolution Time-of-Flight sensors, which will bring advanced 3D depth imaging to smartphones and other devices. The firm also introduced the third generation of its MEMS sensors, which will bring about the next leap in performance for smartphones, wearables, healthcare, retail, and other smart industries.

Hedge fund sentiment reflected the positive trajectory of the Swiss semiconductor firm, which was held by 15 hedge funds in the fourth quarter of 2021. In comparison, 11 hedge funds held stakes in STMicroelectronics N.V. in Q3 2021.

Here is what Saturna Capital, an investment firm, had to say about STMicroelectronics N.V. in its Q3 2021 investor letter:

“STMicroelectronics has a goal of becoming carbonneutral by 2027, and in 2020 reported that their greenhouse gas emissions were down 19% over the previous year. In 2020, STMicroelectronics was the only semiconductor company with targets approved by the Science Based Targets Initiative for limiting warming to 1.5 degrees Celsius, and their 2027 net-zero goal is recognized as one of the most ambitious in the industry. As greenwashing presents a growing concern within the ESG community, and as more and more funds engage in re-branding exercises that have little to do with pursuing sustainable investment practices among others, our definition of sustainability includes financial sustainability, most often demonstrated by intelligent capital allocation leading to solid cash flows that can sustain a business without resorting to excessive leverage.”

1. Intel Corporation (NASDAQ:INTC)

Number of Hedge Fund Holders: 72

Share Price (as of March 1): $46.82

Intel Corporation is a chip-maker based in the United States and offers various technologies for smart devices around the globe.

In February, Raymond James analyst Chris Caso upgraded Intel Corporation to ‘Market Perform’ from ‘Underperform’. The firm has announced plans to invest $100 billion towards building chip-making plants in the coming years and will also release new central processing chips every year until 2025. This is part of the company’s long-term plan to accelerate growth and catch a bigger portion of the competitive chip-making market. Intel Corporation expects revenue to increase 1.7% to $76 billion this year, grow 5-9% in 2023 and 2024, and post 10% to 12% gains in 2025 and 2026.

Reporting its Q4 earnings on January 26, Intel Corporation posted an EPS of $1.09, which beat consensus estimates by $0.18. $19.53 billion in revenue for the quarter was also above analysts’ forecasts by $1.21 billion.

The craze around the semiconductor industry was evident from investor behavior, and Intel Corporation remains one of the biggest names in the industry. Tellingly, 72 hedge funds held stakes in Intel Corporation at the close of the fourth quarter, with a combined value of $5.5 billion. This is up from 66 hedge funds with stakes in the company a quarter ago.

Third Point Management mentioned many stocks in its Q4 2021 investor letter, and Intel Corporation was one of them. The fund said:

“2021 was a highly productive year for Intel‘s new CEO, Pat Gelsinger. Despite the stock’s tepid results, we see a compelling, underappreciated fundamental story. Intel’s “brain drain” – a key part of our thesis when we first sought to help the company confront its long-time underperformance – appears to be reversing. Since joining Intel, Mr. Gelsinger has not only brought back prominent Intel former employees but has also attracted talents from competitors such as AMD, Nvidia, Apple, and, most recently, Micron’s stellar Chief Financial Officer, David Zinsner.

We are encouraged by Intel’s aggressive investment plan, including a recently announced fabrication plant in Ohio and acquisition of Tower Semiconductors. We knew from the start that Intel’s turnaround would be complex and lengthy, and we have been pleased to see Mr. Gelsinger sacrifice near-term earnings for long-term growth.

Finally, after a series of blunders across its PC and Server product lines, Intel is finally receiving good reviews for one of its upcoming processors: Alder Lake. Tom’s Hardware, a preeminent hardware publication, called Alder Lake “a cataclysmic shift in Intel’s battle against AMD’s potent Ryzen 5000 chips.” While this is just one product across a broad lineup, and given it will take time to achieve leadership across them all, we are encouraged by these tangible signs of progress under Mr. Gelsinger’s leadership. With talent returning, an improving product suite, and a willingness to invest for growth, we believe Intel’s prospects have turned the corner. We expect that the company’s upcoming analyst day will be an ideal time for Mr. Gelsinger to articulate the progress he has made and begin to reset expectations for the company.”

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