In this article, we will take a look at the top 10 semiconductor stocks to buy right now.
The global semiconductor industry reported a collective revenue of $626 billion in 2024, an 18.1% increase YoY, as per Gartner. Data centers accounted for the second largest sector for semiconductors, behind Smartphones, with revenues in this sector nearly doubling from $64.8 billion in 2023 to $112 billion in 2024. The International Data Corporation estimated that global demand for semiconductors will grow by 15% in 2025.
The U.S. semiconductor sector is a critical component of the global technology landscape, and its performance has significant implications for the broader economy. In recent years, the industry has experienced both growth and challenges, shaped by several factors. According to analysts, the growth is driven by the increasing reliance on technology in various sectors, including consumer electronics, automotive, healthcare, and artificial intelligence.
The industry has been at the forefront of technological innovation, with companies investing heavily in research and development. This has led to the development of more advanced chips, such as those using smaller process nodes and new materials, enabling greater performance and efficiency. The rapid pace of technological innovation continues to drive demand for more advanced semiconductors. As mentioned earlier, the rise of artificial intelligence (AI) and other emerging technologies is particularly important as these applications require high-performance chips that US companies are well-positioned to provide.
The semiconductor industry is highly competitive, with companies from other countries, particularly in Asia, posing a significant challenge to U.S. companies. This competitive environment has led to increased pressure on pricing and a further need for innovation to maintain a competitive edge. The industry is increasingly affected by geopolitical tensions, particularly between the U.S. and China. The ongoing trade tensions between the US and China have created uncertainty and challenges for the semiconductor industry. These tensions have led to restrictions on trade and investment, which can disrupt supply chains and limit market access for US companies. However, they have also spurred efforts to diversify supply chains and increase domestic production, which could benefit the US semiconductor sector in the long run.
The U.S. government has recognized the strategic importance of the semiconductor industry and has taken steps to support its growth. The CHIPS and Science Act of 2022, which provides significant funding for domestic semiconductor manufacturing and research, is a prime example of this support.
The overall health of the global economy also plays a role in the performance of the semiconductor sector. Economic downturns can lead to decreased demand for electronic devices, which in turn reduces demand for semiconductors. Conversely, periods of economic growth can boost demand for semiconductors and create opportunities for US companies. With the election of President Donald Trump into the Oval Office, analysts are confident that the tech sector will continue to show improved performance. We will now take a look at some of the top semiconductor stocks to buy.
A leading semiconductor chip on a computer robot arm, reflecting the technology advances of the company.
Our Methodology
For this list, we identified the 10 semiconductor stocks which have the highest upside potential using 12-month consensus price target. Then we merged these stocks with Insider Monkey’s Q4 2024 proprietary hedge fund holdings database and identified the 10 most popular hedge fund semiconductor stocks. The stocks are ranked in ascending order of their hedge fund positions.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. QUALCOMM Incorporated (NASDAQ:QCOM)
No. Of Hedge Fund Holders: 79
QUALCOMM Incorporated (NASDAQ:QCOM) develops and sells wireless technology. Its QCT segment provides chips for mobile, automotive, and IoT devices. QTL licenses its patent portfolio for wireless standards like 5G. QSI invests in early-stage tech companies across various sectors, including AI and automotive, and also serves US government agencies. Based in San Diego, Qualcomm was founded in 1985.
QUALCOMM Incorporated (NASDAQ:QCOM) reported revenue for Q1 2025 of $11.67 billion, 32% higher than guidance, and earnings before tax of $3.2 billion. The company’s cellular baseband processor market share for 2021 was $31.4 billion, highlighting the company as the market leader with a majority 55.7% share.
In recent news, U.S. President Donald Trump’s administration is working to strengthen restrictions on China’s chip industry, expanding on policies enacted under former U.S. President Joe Biden, as stated by Bloomberg. The Trump administration is keen on replicating the actions of the Biden Admin to curb exports to China, by pressuring companies in countries such as the Netherlands and Japan.
Earlier at the start of the year, QUALCOMM Incorporated (NASDAQ:QCOM) suffered a setback after its relationship with Apple fell through, with the tech giant opting to produce semiconductors in-house. Khaveen Jey & Anthony Goh with Khaveen Investments, estimate this contract would result in a midpoint of 17.5 million unit sales based on unit sales of iPhone SE4 and iPhone SE3. This means QCOM must diversify its revenue from Apple in order to sustain future growth. It must be noted that QUALCOMM Incorporated (NASDAQ:QCOM)’s biggest clients are Samsung, Huawei, & Xiaomi, thus off-setting the company’s production lines from Apple to these giants of telecom. QUALCOMM Incorporated (NASDAQ:QCOM) management reported robust growth in Android smartphone revenue, projecting a 20% year-over-year increase in fiscal 2024.CFO and COO Akash Palkhiwala stated:
On a sequential basis, the decline in QCT handset revenues is primarily driven by seasonality and shipments to Apple….we expect QCT handset revenues to grow by approximately 10% on a year-over-year basis, including the benefit of increased shipment for Samsung (OTCPK:SSNLF) Galaxy S25 smartphones.
On February 16, QUALCOMM Incorporated (NASDAQ:QCOM)’s share price traded higher, after Apple reaffirmed in-house production of their chip for use in the iPhone. The company’s price at the time of writing this article was $161.22, and a consensus average price of $199 for the next twelve trading months, with an upside of 23.43%.
9. Intel Corporation (NASDAQ:INTC)
No. Of Hedge Fund Holders: 83
A pioneer of the tech sector, Intel Corporation (NASDAQ:INTC) makes and sells a wide range of computing products, from CPUs and GPUs to software and autonomous driving solutions. The company’s quarterly earnings for Q1 2025 revealed revenue of $14.26 billion, exceeding expectations by $434 million. Intel Corporation’s (NASDAQ:INTC) Panther Lake, due in late 2025, targets performance beyond TSMC’s 2nm, potentially improving Intel’s competitiveness and shareholder value. Reuters recently reported that the company is in talks with NVIDIA and Broadcom for carrying out manufacturing tests, boosting Intel Corporation’s (NASDAQ:INTC) share price by 1.5%.
The SIA, which includes Intel Corporation (NASDAQ:INTC), is expected to meet with the U.S. Trade Commission on March 11, to emphasize taking further actions to boost the industry, publicly stating:
In semiconductors, as in other advanced technologies, China has pursued a wide range of policies and practices that seek to frustrate access for foreign products and companies to its domestic market, while offering an array of subsidies, discriminatory standards, preferential government procurement policies, local content requirements, and other measures intended to boost local producers and design-in domestically produced semiconductor chips into downstream products for sale in China’s domestic market as well as for products exported to the rest of the world.
Intel Corporation (NASDAQ:INTC)’s segments have shown weakness, however, the company’s core business continues to shine, with analysts suggesting it needs to clean up its balance sheet to keep investor confidence high. Intel is ramping up its 18A node in late 2025 and into 2026, anticipating successful scaling and substantial cash flow generation. At the time of writing this article, the company’s share price is $20.64 with a market capitalization of $89.37 billion, The consensus average 12-month proposed share price is estimated at $22.75, an upside of 10.22%.
8. Lam Research Corporation (NASDAQ:LRCX)
No. Of Hedge Fund Holders: 84
Lam Research Corporation (NASDAQ:LRCX) makes semiconductor manufacturing equipment for etching, deposition, and cleaning, serving diverse markets globally, including the US, China, and Asia. The company’s USP is that these technologies are fundamental to manufacturing the high bandwidth memory (HBM) and advanced logic chips that power AI applications. Rapid AI infrastructure growth, ongoing memory upgrades, and expanding chip manufacturing capacity are driving sustained growth. The company reported a revenue of $4.38 billion for Q1 2025 and declared a dividend of $0.23 per share.
Lam Research Corporation (NASDAQ:LRCX) stands out as a particularly compelling company in today’s environment. Its dominant market position in critical manufacturing technologies gives it a significant advantage. As cloud providers expand their data center infrastructure, they rely on the company’s expertise and cutting-edge solutions to build and upgrade their facilities. This positions Lam Research Corporation (NASDAQ:LRCX) to capitalize on the sustained growth of the cloud computing market. At the time of writing this article, the stock has a share price of $79.01 and a market cap of $101.48 billion. Lam holds immense potential, with the 12-month trading price of $95.60 with an upside of 21%.
7. ASML Holding N.V. (NASDAQ:ASML)
No. Of Hedge Fund Holders: 86
ASML Holding N.V (NASDAQ:AMSL) develops, produces, and services advanced semiconductor lithography equipment for chipmakers. The company’s stock price fell 10% to $683 following the DeepSeek news, potentially creating a buying opportunity for long-term investors. A deeper look into its financials reveals strong Q4 2024 results. Net sales of €9.3 billion exceeding guidance, driven by both EUV and non-EUV systems. Looking ahead to 2025, ASML projects revenue between €30B and €35B with gross margins of 51% to 53%. Logic sales meanwhile declined by 17% to €13.2B in 2024, and memory sales saw a significant 44% increase to €8.6B, demonstrating market volatility.
CEO Christophe Fouquet reiterated that the news of DeepSeek would not interrupt chip equipment manufacturers, stating:
“So, basically, the AI-driven chips are more demanding when it comes to advanced process. I think what we said is we see those, those new products mostly calling for a bit of an acceleration of Moore’s Law and therefore our customers being more aggressive when it comes to technology transition. If AI demand continues to be strong and customers are successful in bringing on additional capacity online to support that demand, there is potential opportunity towards the upper end of our range.”
ASML Holding N.V (NASDAQ:AMSL) order backlog remains strong at approximately €36 billion, though less transparent reporting starting in 2026 could lead to increased stock price volatility. In essence, the company’s leadership in advanced chip manufacturing and strong technological advantage position it well for long-term growth. Looking ahead, the company shared future estimates of top-line for CY25 to be between €30B-€35B. Caution must be observed by investors of both cyclical fluctuations and geo-political uncertainties that could impact the company. The consensus average price over the next twelve trading months is $918.5 with an upside of 25.45%.
6. Micron Technology, Inc. (NASDAQ:MU)
No. Of Hedge Fund Holders: 94
Micron Technology Inc. (NASDAQ:MU) designs, manufactures, and sells memory and storage products for various markets globally. The company’s success is built on demand for data processing and storage, which is growing due to AI, cloud computing, and HPC. Therefore, the demand for memory chips is very high for increased AI infrastructure.
Micron Technology Inc.’s (NASDAQ:MU) Q1 2025 earnings call reported revenue of $8.71 billion, exceeding expectations by $11.74 million. The increasing size and complexity of AI models will drive demand for advanced DRAM and NAND storage, creating significant growth potential for memory chipmakers like Micron Technology. At Nvidia’s January CES conference, CEO Jensen Huang also emphasized MU’s HBM as crucial to the Blackwell architecture:
“The [graphics processing unit] in our new GeForce RTX 50 series Blackwell architecture is just a beast. [We’re getting] G7 memory from Micron of 1.8 terabytes per second, twice the performance of our last generation, and we now have the ability to intermix AI workloads with computer graphics workloads.”
The news of AI developed by China would increase the adoption of the company’s technology, as it becomes more accessible. This affordability should drive increased demand for AI chips and related memory solutions. Micron Technology Inc. (NASDAQ:MU)’s share price at the time of writing this article is $92.96 with a consensus on the average twelve-month trading share price at $130.15, an upside of 39.9%.
5. Advanced Micro Devices, Inc. (NASDAQ:AMD)
No. Of Hedge Fund Holders: 96
Advanced Micro Devices, Inc. (NASDAQ:AMD) offers a wide range of semiconductor products, including CPUs, GPUs, FPGAs, and adaptive SoCs, for data-center, client, gaming, and embedded markets. Its Q4 2024 quarterly earnings call revealed revenue up 24% YoY to $7.7 billion, and EPS improving by 42% YoY to $1.10.
Recent news related to the introduction of an AI out of China, and news of potential US tariffs on China plays a cyclical role on Advanced Micro Devices, Inc. (NASDAQ:AMD)’s stock price, but a strong long-term view. The company’s recent results are a testament to the company’s successful ability to penetrate the AI sector.
Advanced Micro Devices, Inc. (NASDAQ:AMD) EVP and CFO Jean Hu spoke at the Morgan Stanley Global TMT Conference:
“We actually ramped up MI300 really quickly and exceeded $5 billion. Both the MI300 and our ROCm software right now are powering some of the most complicated AI models, right, at Microsoft, at Meta, at scale. So, it’s a lot of progress we made, and the team executed flawlessly, actually, to ramp the production of MI300.
At the same time, we also made tremendous progress in our overall hardware roadmap and the software stack. If you think about the hardware side, not only we introduced the MI325, we also put in this year, MI350. And next year, we’re going to be on track for MI400. On the software side, we made a lot of progress with the ROCm to really support all different applications and the workload. We also acquired ZT Systems to build our system expertise to build rack level and class level designs.
So, overall, the progress made and our engagement with the customers also broadened quite significantly. Not only we add new customers and with existing customers, the engagement has always been about multi-generational. It’s not just about generating MI300 revenue. It’s about the discussions for MI350 and the MI400, how we help our customers to build the clusters to provide a better TCOs.”
Advanced Micro Devices, Inc. (NASDAQ:AMD) has seen a decline in share price over the past year from $170.94 to the current value of $100.31. This is significant for investors seeking to get in when they feel they may have missed an opportunity a year ago, with a consensus of the average twelve month trading share price to be $149.96, representing an upside of 38.9%.
4. Marvell Technology, Inc. (NASDAQ:MRVL)
No. Of Hedge Fund Holders: 105
Marvell Technology, Inc. (NASDAQ:MRVL) provides data infrastructure semiconductors, including networking, storage, and electro-optical solutions. The company is a leader in custom AI silicon, with Q4 2025 revenue of $1.82 billion, driven by sales of data-center products.
Despite the most recent industry news impacting the tech sector (i.e. DeepSeek’s surprising entrance into the sector), Marvell Technology, Inc. (NASDAQ:MRVL) diversified portfolio and AI focus mitigate risks and support continued growth.
The company recently achieved a significant milestone, a multi-year contract with Amazon. Despite a high valuation, its growth prospects, narrowing valuation gap, and major deals like the one with Amazon suggest significant upside. On the latest earnings call, Matt Murphy, Chairman and Chief Executive Officer of Marvell Technology, Inc. (NASDAQ:MRVL) spoke about the company’s products’ performance and expectation of demand going into 2025.
“We are seeing strong custom AI demand continue into the fourth quarter and have secured supply chain capacity to support our customers’ growth forecasts.
The design of the next generation of accelerated infrastructure is inexorably tied to how efficiently data can be moved on and off the accelerators and throughout the cluster. This increase in the role of high speed networking and AI data centers is perfectly aligned to our strength as an industry leader. And just like compute, hyperscalers are also customizing networking, and we are seeing similar momentum for flash-based storage, HBM and CXL-based DRAM pooling…
…we are continuing to invest in all aspects of our technology platform, including advanced process nodes, electrical and optical SerDes, high speed die-to-die interconnects, embedded memory, custom HBM, 2.5D and 3D packaging and silicon photonics. This week we announced the demonstration of the industry’s first 2-nanometer silicon IP for next generation AI and cloud infrastructure.”
3. Broadcom Inc. (NASDAQ:AVGO)
No. Of Hedge Fund Holders: 161
Broadcom Inc. (NASDAQ:AVGO) designs and supplies semiconductors and infrastructure software for diverse applications, including networking, connectivity, and industrial use. The company’s earnings from Q1 2025 revealed revenue of $14.92 billion, and operating income of $9.8 billion.
Broadcom Inc. (NASDAQ:AVGO) growth is fuelled by AI chip demand, particularly from hyperscalers, with strong prospects in Application-Specific Integrated Circuits (ASICs) and networking. DeepSeek’s emergence could further boost demand for ASIC. The recent sell-off presents a potential buying opportunity.
Broadcom Inc.’s (NASDAQ:AVGO) ASICs are used in multiple AI applications, including machine learning, deep learning, and natural language processing. As AI adoption continues to grow, the company is expected to see strong demand for its ASICs. Analyst optimism arises from the fact that Broadcom’s AI prospects are mostly linked to the ASICs end market, not to mention networking and Ethernet connectivity. ETF provider VanEck states that the semiconductor market is positioned to have another transformative year in 2025, with Broadcom Inc. (NASDAQ:AVGO) positioned well to thrive and capitalize on AI-driven innovations, with an upside of 8.07%.
2. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
No. Of Hedge Fund Holders: 186
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) manufactures, packages, tests, and sells integrated circuits and other semiconductor devices globally, dominating the global foundry market with 50% market share. The company hit sales exceeding $88 billion in Q4 of 2024, with further investments in AI infrastructure.
At the end of January 2025, Taiwan Semiconductor Manufacturing Company Limited’s (NYSE:TSM) stock price slumped after the news of a Chinese AI company producing a more efficient AI model, similar to all other tech giants. If anything, analysts believe this creates a buying opportunity for investors who wish to jump onto the chance to invest further. The company’s CEO C.C. Wei and President Trump stated last week that the company will invest $100B in new capital in the U.S. over the next four years as it looks to boost its presence in the U.S. A spokesperson stated:
“Back in 2020, thanks to President Trump’s vision and support, we embarked on our journey of establishing advanced chip manufacturing in the United States. We’re pleased to have an opportunity to meet with the President and look forward to discussing our shared vision for innovation and growth in the semiconductor industry, as well as exploring ways to bolster the technology sector along with our customers.”
A month prior, the US applied trade tariffs to China, company representatives met with the legal counsel of the US Commerce Department, and Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) spokesperson stated that the company is dedicated to adhering to all relevant laws and regulations and remains fully committed to following the newly introduced export control rules.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) has already received $1.5B of the CHIPS Act grant as part of previously agreed upon milestones. The company’s share price stands at $177.12 as of Friday, 7th March 2025, and a consensus of the average price prediction for trading twelve months at $244.27, an upside of 18.51%.
1. NVIDIA Corporation (NASDAQ:NVDA)
No. Of Hedge Fund Holders: 223
NVIDIA Corporation (NASDAQ:NVDA) provides graphics, computer, and networking solutions, including GPUs, software, and platforms for gaming, data-centers, automotive, and AI.
Morgan Stanley reiterated its Top Pick rating for Nvidia, viewing the DeepSeek selloff as a buying opportunity, leading to the share price rising by 2% on Thursday last week. Analysts led by Mr. Joseph Moore acknowledge headwinds in the long-term, but the short-term business outlook remains firm. The company reported revenue of $39.3 billion during the Q4 2024 earnings call.
NVIDIA Corporation (NASDAQ:NVDA) hardware-software integration, particularly its DGX cloud offerings, makes it a major player in AI and serverless computing. The company’s CEO also stated an improvement in their product performance by millions of times over the past decade, and expects similar growth over the next decade. While having an established dominance in hardware, it also has an overwhelming presence in the cloud. With 93% of GPU-accelerated instances being powered by the company’s hardware.
The Semiconductor Industry Association (SIA) which includes NVIDIA Corporation (NASDAQ:NVDA) as a member, spoke about the importance of the US Trade Commission to look beyond tariffs and work with global allies to offset China’s attempts at dominating the industry.
“In semiconductors, as in other advanced technologies, China has pursued a wide range of policies and practices that seek to frustrate access for foreign products and companies to its domestic market, while offering an array of subsidies, discriminatory standards, preferential government procurement policies, local content requirements, and other measures intended to boost local producers and design-in domestically produced semiconductor chips into downstream products for sale in China’s domestic market as well as for products exported to the rest of the world.”
At the time of writing this article, NVIDIA Corporation’s (NASDAQ:NVDA) share price was $112.69, with a consensus on the average price for the trading 12-months at $172.22, an upside of 52.83%.
Overall, NVIDIA Corporation (NASDAQ:NVDA) ranks first in our list of top semiconductor stocks. While we acknowledge the potential for NVDA as an investment, our conviction lies in the belief that some 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 delivers higher returns than NVDA, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
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