These 10 Semiconductor Stocks Are Popular On Reddit

Published July 29, 2022 at 9:12 am EDT Updated September 7, 2026 at 2:19 pm EDT

In this piece, we will take a look at ten semiconductor stocks that are popular on Reddit.

It’s a no brainer that the semiconductor sector is crucial to the modern day global economy. As a testament to this fact, there are a host of research reports out there that have optimistic outlooks for the industry. For instance, a report by DataM Intelligence that was released in mid July estimates a compounded annual growth rate (CAGR) for the chip sector to sit at 7.4% from this year to 2029. Through this, the sector will be worth $1 trillion by 2029, with several other sectors such as machine learning and artificial intelligence slated to fuel this growth.

Another report, this time from IDC, suggests that by the end of this year, the semiconductor industry will have generated a whopping $622 billion in revenue. This will mark for 13.7% annual growth from last year’s cumulative revenues of $582 billion. IDC also revealed that last year, the top ten chip companies in the world were responsible for generating 58% of the total revenue, while the top 20 firms held 76% of the market.

Finally, Fortune Business Insights estimates that the chip sector was worth $527 billion in 2021 and over the course of the next seven years, it will grow from an estimated worth of $573 billion by the end of 2022 to $1.4 trillion by the end of 2029, to reflect a CAGR of 12.2%.

Therefore, it’s clear that the semiconductor sector has a bright future ahead of it, and for today’s coverage we decided to take a look at which chip stocks are holding the attention of retail investors on the social media platform Reddit. The industry itself is divided into several segments, with some companies dealing with consumer and enterprise products, others with basic products necessary for the functioning of nearly every gadget out there, and the remaining responsible for chip fabrication. On Reddit, users are talking about all these categories, to represent a diverse set of opinions.

The top three companies on our list today are NVIDIA Corporation (NASDAQ:NVDA), Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), and Advanced Micro Devices, Inc. (NASDAQ:AMD).

These 10 Semiconductor Stocks Are Popular On Reddit

Photo by Umberto on Unsplash

Our Methodology

In order to sift out some of the top chip stocks on Reddit, we scanned through several threads on the social media platform. Stocks were then picked out based on reader interest and user engagement on the website. Some of the Reddit communities that we scanned for today’s list are r/Stocks, r/WallStreetBets, and r/Investing, with some of the threads having more than a hundred comments from users sharing their takes on the semiconductor industry. The stocks have then been ranked by the number of hedge funds out of 912 that Insider Monkey surveyed Q1 2022 that had held a stake in them.

These 10 Semiconductor Stocks Are Popular On Reddit

10. iShares Semiconductor ETF (NASDAQ:SOXX)

Number of Hedge Fund Holders: 8

iShares Semiconductor ETF (NASDAQ:SOXX) is an exchange traded fund (ETF) that focuses on stocks in the semiconductor industry. The ETF tracks the ICE Semiconductor Index (TR) and has a total market capitalization of $6.4 billion. The fund tracks 30 U.S. listed chip stocks, and its latest price to book (P/B) ratio is 4.46, and 30 day SEC yield is 1.15%.

Out of the 30 constituent firms, the largest holding in the iShares Semiconductor ETF is in the shares of Broadcom Inc. (NASDAQ:AVGO). This company is primarily responsible for designing and selling networking chips and products and the firm is expected to benefit from a growth in data centers and cloud computing according to a research note issued by the investment bank JPMorgan in July 2022. 8 hedge funds out of the 912 polled by Insider Monkey during Q1 2022 had held stakes in the ETF.

Along with Taiwan Semiconductor Manufacturing Company Limited, NVIDIA Corporation, and Advanced Micro Devices, Inc., iShares Semiconductor ETF is another chip stock making waves on Reddit.

9. ASML Holding N.V. (NASDAQ:ASML)

Number of Hedge Fund Holders: 46

ASML Holding N.V. (NASDAQ:ASML) is the only company in the world that is capable of making machines that can manufacture leading edge semiconductors. These machines are used by all of the world’s largest chip manufacturers, and the company holds a monopoly in the market for extreme ultraviolet lithography (EUV) chip machines. The firm is headquartered in Veldhoven, Netherlands.

The strongest point for ASML Holding N.V. is the fact that it is the only player in its industry of high end chip manufacturing machines. Therefore, chipmakers such as Intel Corporation (NASDAQ:INTC) and the Taiwan Semiconductor Manufacturing Company are eager to get their orders first to the company to secure the equipment and gain an edge in their markets.

ASML Holding N.V.’s second quarter earnings were released in July 2022 and they revealed that not only did the firm beat analyst estimates but that it had net bookings of €8.5 billion. This was a new quarterly record and demonstrated the strength of the company’s business model. Insider Monkey’s Q1 2022 survey of 912 hedge funds outlined that 46 had bought the company’s shares.

ASML Holding N.V.’s largest investor is Ken Fisher’s Fisher Asset Management which owns 4.5 million shares that are worth $2.9 billion.

ClearBridge Investments mentioned ASML Holding N.V. in its first quarter of 2022 investor letter to state that:

“During the quarter, we reduced our semiconductor exposure through the trim of ASML (NASDAQ:ASML) to manage concerns of a slowdown due to the risk of double ordering and potential softness in some consumer end markets. We increased our position in IT services with the purchase of Accenture as we remain optimistic about the long-term growth potential these companies provide, which is underpinned by the compressed digital transformation cycle, rising cloud adoption and growth in data-driven insights.

Despite the market volatility and hyper focus on rising rates, chief information officer surveys continue to forecast resilience in IT budgets this year. Growth in IT spending for 2022 is expected to remain above the 10-year pre-COVID-19 average, according to Morgan Stanley. We believe this is a result of the strong secular underpinnings brought on by digital transformation and businesses focusing on increasing efficiencies through technology.”

8. Texas Instruments Incorporated (NASDAQ:TXN)

Number of Hedge Fund Holders: 46

Texas Instruments Incorporated (NASDAQ:TXN) is one of the oldest American chip companies, formed in 1930 and is headquartered in Dallas, Texas. The firm is responsible for designing and selling semiconductors that are responsible for power management and signal processing in a wide variety of technology gadgets.

Texas Instruments Incorporated is one of the few semiconductor stocks out there that pays a dividend. Its current dividend yield stands at a high of 2.84% through a dividend of $1.15 per share. The company’s annual cash flow has grown at a rate of 12% since 2004, and it is in the top 97th percentile of the chip industry when its return on invested capital is measured.

Oppenheimer reduced Texas Instruments Incorporated’s share price target to $200 from $220 in July 2022, as it reflected on the current chip downturn. However, the firm kept an Outperform rating for the shares. 46 out of Insider Monkey’s database of 912 hedge funds for this year’s first quarter had bought the company’s shares.

Jean-Marie Eveillard’s First Eagle Investment Management is Texas Instruments Incorporated’s largest investor. It owns 3.3 million shares that are worth $621 million.

Davis Funds mentioned Texas Instruments Incorporated in its Q4 2021 investor letter. Here is what the fund said:

“Within technology and communication services, we own a number of online businesses and semiconductor related companies, including Alphabet, Amazon, Intel, Applied Materials and Texas Instruments. Within the realm of high technology, we believe that leadership positions reflect enduring and widening competitive advantages over smaller competitors, with few exceptions. This is because online businesses, as well as semiconductor companies, benefit from economies of scale. An online search and advertising engine will, in general, be more profitable per unit of cost as it grows larger in terms of users and advertising dollars. It is a hub-and-spoke model, in other words, where it is generally not necessary to grow expenses at the same rate that revenues grow beyond a certain threshold. Therefore, returns on capital tend to be higher, the larger and more dominant the online search company is.”

7. KLA Corporation (NASDAQ:KLAC)

Number of Hedge Fund Holders: 52

KLA Corporation (NASDAQ:KLAC) is an American company that serves the upstream semiconductor supply chain. The firm is responsible for manufacturing and selling process control and yield management solutions that help chipmakers finetune their manufacturing process technologies.

KLA Corporation’s revenue has grown at a CAGR of 12% since 2012 and the firm sells long life tools and products, with more than 80% of the tools that it has shipped in its history still being used in the industry. The firm also plans to return more than 85% of its free cash flows back to investors in the form of dividends and share repurchases over the next couple of years.

Morgan Stanley raised KLA Corporation’s share price target to $377 from $373 in July 2022, for a rare chip share price upgrade. As its rationale, the bank outlined that the future of the industry remains slightly foggy for the time being. Insider Monkey scanned 912 hedge fund portfolios for this year’s March quarter to discover that 52 had bought KLA Corporation’s shares.

KLA Corporation’s largest investor is Panayotis Takis Sparaggis’s Alkeon Capital Management which owns 1.6 million shares worth $593 million.

In its first quarter of 2022 investor letter, Vltava Fund shared about KLA Corporation that:

“We then used the money freed up to, among other things, open three new positions. The stock price declines during the Russian invasion brought a lot of good prices to the market. Out of all the possibilities we considered, we picked the stock of KLA Corporation (KLAC).

KLA Corporation develops leading-edge equipment and services that enable innovation throughout the electronics industry. It specialises in process management and control in semiconductor manufacturing and the related nanoelectronics industries. During manufacturing processes, products must be inspected for defects and correct critical dimensions in order to identify and eliminate possible sources of problems. As customers continue to enforce Moore’s Law, smaller chips must meet more precise specifications, which in turn increases the need for advanced inspection and diagnostic tools. This is a key step within the entire manufacturing process and one in which the company has built a very strong, and in places dominant, global position. We have been watching and waiting for an opportunity to acquire this stock for some time already, and this year’s drop in its price finally prompted us to buy.”

6. Lam Research Corporation (NASDAQ:LRCX)

Number of Hedge Fund Holders: 59

Lam Research Corporation (NASDAQ:LRCX) is another chip manufacturing equipment provider. The company is one of the few firms out there that sells equipment used in extreme ultraviolet (EUV) chip manufacturing. It is headquartered in Fremont, California, United States.

Lam Research Corporation’s fortunes are directly tied with those of the semiconductor industry since the company is responsible for manufacturing equipment directly used in chip etching and deposition. As is the case with the research reports we shared in the introduction, Gartner also expects the chip sector to grow by 13.6% this year, spelling a positive note for the company.

Lam Research Corporation’s share price target was lowered to $525 from $625 by B. Riley in July 2022, in the wake of the recent historic cyclical downturn in the market. 59 of the 912 hedge funds part of Insider Monkey’s Q1 2022 poll had bought the company’s shares.

Ken Fisher’s Fisher Asset Management is Lam Research Corporation’s largest investor. It owns 1.9 million shares that are worth $1 billion.

Vulcan Value Partners shared some thoughts about Lam Research Corporation in its Q1 2022 investor letter. These were as follows:

“Lam Research Corp. designs and manufactures equipment used in the fabrication of semiconductors. Recent supply chain issues have negatively impacted the industry and has resulted in chip shortages. The industry is performing well, exceeding our expectations, and Lam Research’s fundamentals remain strong. The long-term secular drivers of demand and growth in the industry continue to be very powerful. Lam Research is experiencing increasing returns on capital, higher margins, and more stable results.”

Lam Research Corporation is a semiconductor stock popular on Reddit, alongside NVIDIA Corporation, Taiwan Semiconductor Manufacturing Company Limited, and Advanced Micro Devices, Inc..

5. Broadcom Inc. (NASDAQ:AVGO)

Number of Hedge Fund Holders: 71

Broadcom Inc. is a semiconductor company that engages in the design and sales of signal processing chips. These chips are used in a wide variety of devices such as smartphones, data centers, and notebooks. The firm is headquartered in San Jose, California, United States.

Broadcom Inc. is currently acquiring cloud services provider VMware. This deal is set to boost the firm’s already impressive portfolio of products that sees more than 99.9% of all internet traffic pass through a Broadcom Inc. product, more than 19,000 patents, and hundreds of top global companies as clients.

JPMorgan shared a positive outlook for the cloud computing sector in July 2022, highlighting that capital expenditure in data centers will grow by 25% this year, and bode well for Broadcom Inc.. Insider Monkey took a look at 912 hedge fund portfolios for the first quarter of this year and found out that 71 had bought the company’s shares.

Out of these, Ken Fisher’s Fisher Asset Management is Broadcom Inc.’s largest investor. It owns 1.4 million shares that are worth $894 million.

In its Q1 2022 investor letter, ClearBridge Investments had the following to say about Broadcom Inc.:

“However, ClearBridge portfolio companies are responding by supporting their workforces and showing resilience in adapting and thriving. Semiconductor companies ClearBridge owns and engages with have been successful in advancing vaccinations in their global supply chains. In Malaysia, for example, Broadcom has taken part in PIKAS, a public-private partnership vaccination program focusing on the workforce in critical manufacturing sectors. By the summer of 2021 Broadcom was able to get over 90% of workers in its Penang factory at least one dose of vaccine, and roughly 73% fully vaccinated. Companies in the program also pay the administration cost for vaccinations including cases where the employee is no longer employed by the company before full immunization of the employee.”

4. Intel Corporation (NASDAQ:INTC)

Number of Hedge Fund Holders: 76

Intel Corporation is the world’s largest chip manufacturer. Headquartered in Santa Clara, California, United States, the company is widely credited with having invented the modern day transistor, which is a simple circuit that forms the backbone of a chip.

Intel Corporation is one chip company that is investing heavily in its future. During its fiscal first quarter the company spent 17% of its revenue on research and development (R&D) and owing to its key position as the only leading edge Western chip manufacturer, the company received more than $7 billion in funds from the EU last year to build new chip plants and is hoping to receive U.S. government support as well.

Susquehanna reduced Intel Corporation’s share price target to $40 from $42 in July 2022, as it outlined that a weaker personal computing market might not bode well for the chip firm. Insider Monkey’s 912 hedge fund survey for Q1 2022 revealed that 76 had invested in the company.

Intel Corporation’s largest investor is Seth Klarman’s Baupost Group which owns 16 million shares that are worth $822 million.

Baron Funds mentioned Intel Corporation in its first quarter of 2022 investor letter, outlining that:

“Intel’s capital spending process is guided by a process they appropriately named “copy exactly.” This means that they attempt to “copy exactly” what they have already built and attempt to improve tried and true processes iteratively.”

3. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)

Number of Hedge Fund Holders: 81

Taiwan Semiconductor Manufacturing Company Limited is the world’s largest contract semiconductor manufacturer. The company takes orders from other firms such as Apple, Inc. (NASDAQ:AAPL) and builds their chips with its latest technologies. The firm is headquartered in Hsinchu, Taiwan.

The Taiwan Semiconductor Manufacturing Company Limited expects to grow its revenues by more than 30% this year despite a downturn in the semiconductor industry. It also commands the highest market share for a contract chip maker, as data for this year’s first quarter revealed that TSMC had controlled 54.9% of the market, as it gained 1.6% in market share.

Susquehanna lowered Taiwan Semiconductor Manufacturing Company Limited’s share price target to $88 from $90 in July 2022, as it worried about the impact of a highly expected chip inventory correction. Insider Monkey scanned 912 hedge fund holdings for this year’s March quarter to find out that 81 had bought the company’s shares.

Ken Fisher’s Fisher Asset Management is Taiwan Semiconductor Manufacturing Company Limited’s largest investor through a $2.7 billion stake that comes via 26 million shares.

In a fresh Q2 2022 investor letter, Wedgewood Partners mentioned Taiwan Semiconductor Manufacturing Company Limited and stated:

“Taiwan Semiconductor detracted from performance despite a business performance that saw revenue accelerate to over +30% growth. The Company is one of the few fabs in the world that is capable of manufacturing leading-edge integrated circuits (IC). The Company’s leading-edge capacity is being absorbed by high-performance computing applications, particularly by Apple, which has become an integrated circuit powerhouse over the past decade. The Company’s aggressive investment in leading-edge equipment, tight development with fabless IC designers, and embrace of open development libraries should continue to foster a superior competitive position and attractive long-term growth.”

2. Advanced Micro Devices, Inc. (NASDAQ:AMD)

Number of Hedge Fund Holders: 83

Advanced Micro Devices, Inc. is an American semiconductor designer and seller that sells central processing units (CPUs), graphics processing units (GPUs), and custom processors. The company is headquartered in Santa Clara, California.

Advanced Micro Devices, Inc. is one of the strongest growing stocks in the semiconductor industry, as it has appreciated by close to 3,000% over the course of the last decade. Continuing its trend of consecutive revenue growth, the company hopes to further grow its revenue by 60% this year. Its revenue for the first quarter of this year had marked an even stronger growth of 71%.

BMO Capital raised Advanced Micro Devices, Inc.’s share price target to $115 from $100 in July 2022, as it outlined that not only is the company on track for sustained market share growth against Intel but that its enterprise computing segment is generating strong customer interest. Out of the 912 hedge funds tracked by Insider Monkey for Q1 2022, 83 had held a stake in Advanced Micro Devices, Inc..

Out of these, Ken Fisher’s Fisher Asset Management is Advanced Micro Devices, Inc.’s largest investor. It owns 24 million shares that are worth $2.6 billion.

Here is what Carillon Tower Advisers had to say about Advanced Micro Devices, Inc. in its Q4 2021 investor letter:

“Advanced Micro Devices (AMD) supplies semiconductor chips for central processing units (CPUs) and graphic processing units (GPUs). The firm has been gaining share against its primary competitor in the datacenter server CPU space, as this rival has been unable to match the design and manufacturing capabilities of AMD and its partners. Investors are also looking forward to the closing of the previously announced merger with a semiconductor manufacturer that is another one of the portfolio’s holdings. The merger will increase AMD’s capabilities in the Field Programmable Gate Array (FPGA) chip space, and the combined company should possess the potential to win additional market share in the datacenter chip market.”

1. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 102

NVIDIA Corporation designs and sells semiconductors referred to as graphics processing units (GPUs). These products are used in a wide variety of applications, such as video games, video processing, visualization, data centers, and cloud computing. It is based in Santa Clara, California, United States.

NVIDIA Corporation has one of the strongest product portfolios in the industry right now, as it designs and sells nearly every product needed in data center and cloud computing. This lends its enterprise computing segment a total addressable market (TAM) of roughly $500 billion.

Baird lowered the company’s share price target to $150 from $165 in July 2022, due to concerns about inventory buildups at retailers for personal computing GPUs. Insider Monkey analyzed 912 hedge fund portfolios for this year’s first quarter and found out that 102 had invested in the company.

NVIDIA Corporation’s largest investor is Ken Fisher’s Fisher Asset Management which owns 7.3 million shares that are worth $1.9 billion.

RiverPark Funds had the following to say about NVIDIA Corporation in its Q1 2022 investor letter:

“Nvidia is the leading designer of graphics processing chips (commonly known as GPU’s- graphics processing units), required for powerful computer processing. Over the past 20 years, the company has evolved through innovation and adaptation from a predominantly gaming- focused chip vendor to one of the largest semiconductor/software vendors in the world, dominating the core secular growth markets of gaming, data centers and professional visualization. Over the past decade, the company has grown revenue at a compound annual rate of over 20% while expanding operating margins and, through its asset light business model, producing ever increasing amounts of free cash flow. For 2021 the company generated 61% revenue growth to $27 billion, expanded its EBITDA margins to over 44% and generated over $8 billion of free cash flow. Over the past five years, the company has generated a cumulative $23 billion of FCF after cumulative capital expenditures of less than $4 billion.

We expect future growth to remain robust as NVDA chips and software are critical to many of the core technologies being adopted globally, including cloud computing, virtual reality and advanced artificial intelligence. As with NFLX, we took advantage of the over 40% recent drop in the company’s shares over the last several months to initiate a small position.”