The semiconductor industry has been delivering record-breaking numbers in the past two years. It had a solid 2024 where global chip sales increased 19% to $627 billion and this year is already shaping up to smash expectations. Projections point to $697 billion in revenue and the industry is on track to the $1 trillion target by 2030.
The CHIPS and Science Act remains active under the Trump administration, so it has been continuing to help those in the semiconductor manufacturing industry. The manufacturing boom here is now starting to spill over into smaller semiconductor players as bigger companies have trouble scaling up to the demand.
If you sort semiconductor stocks by YTD gains, you’ll mostly find up-and-coming plays. These smaller companies could be the next big winners in the AI race, so it’s worth looking into them.
A semiconductor production line, showing the complex procedures of chip manufacture.
Methodology
For this article, I screened the top-performing semiconductor stocks year-to-date. Stocks that I have covered recently will be excluded from this list.
I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds invest in? 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 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).
15. inTest Corp (NYSEAMERICAN:INTT)
Number of Hedge Fund Holders In Q3 2024: 7
inTest Corp (NYSEAMERICAN:INTT) is a precision-engineered test and process company in the semiconductor industry.
The stock is up relatively well so far in 2025 due to it getting price target hikes and some strategic distribution expansions. Northland upgraded it from Hold to Strong Buy and raised its price target to $16 back in January.
In addition, it has seen a recovery in orders and diversification into the EV and life sciences markets. The company signed General Bussan as an exclusive distributor in Japan for semiconductor test solutions and partnered with Prodigy Processing Solutions to distribute ultra-low temperature chillers for cannabis/hemp extraction.
Analysts project 5.34% revenue growth in 2025 after 5% in 2024.
The consensus price target of $16 implies 77% upside.
INTT stock is up 5.85% year-to-date.
14. Indie Semiconductor (NASDAQ:INDI)
Number of Hedge Fund Holders In Q3 2024: 12
Indie Semiconductor (NASDAQ:INDI) is a fabless semiconductor company that specializes in automotive technology.
It has risen quite a lot so far in 2025 as it reported a $7.1 billion strategic backlog. It also forecasts over 40% revenue growth in 2025 and targets $300 million in sales and a path to breakeven. This backlog is due to contracted design wins that include a marquee radar-related program set to ramp production this year.
INDI also launched an ASIL-D-certified safety chip. It is the highest automotive safety standard for vehicle powertrains. Q4 2024 earnings are close (February 20), so investor optimism is also driving it higher.
The consensus price target of $8.29 implies 93.37% upside.
INDI stock is up 6.05% year-to-date.
13. Nlight Inc (NASDAQ:LASR)
Number of Hedge Fund Holders In Q3 2024: 21
Nlight Inc (NASDAQ:LASR) makes high-power semiconductor and fiber lasers.
LASR stock is up so much year-to-date due to its CEO saying that the company has strong prospects in aerospace/defense for 2025. Investors seem optimistic despite missing preliminary Q4 revenue guidance.
It reported $46 million to $48 million in expected Q4 revenue, whereas the forecast was $49 million to $54 million. This initially caused a 17% drop post-announcement.
Regardless, analysts have maintained their bullish sentiment. There has been institutional buying and the stock has short-squeeze potential.
The consensus price target of $15.13 implies 35.4% upside.
LASR stock is up 6.39% year-to-date.
12. Ultra Clean Holdings Inc (NASDAQ:UCTT)
Number of Hedge Fund Holders In Q3 2024: 24
Ultra Clean Holdings Inc (NASDAQ:UCTT) supplies subsystems and components for the semiconductor industry.
The stock has risen so much year-to-date due to two primary catalysts. The first is due to its appointment of Joanne Solomon to its board, who is a former CFO of semiconductor packaging giant Amkor Technology.
It also gained momentum recently due to its Q4 2024 earnings call expected on February 24, 2025. Analysts expect an earnings beat, with current projections expecting revenue between $535 million to $585 million, and EPS at $0.42 (midpoint), up from -$0.19 in Q3 2024.
The consensus price target of $57.75 implies 49.03% upside.
UCTT stock is up 6.65% year-to-date.
11. CEVA Inc (NASDAQ:CEVA)
Number of Hedge Fund Holders In Q3 2024: 17
CEVA Inc (NASDAQ:CEVA) is a semiconductor intellectual property (IP) licensor. It specializes in digital signage processing (DSP) and AI processors.
The stock is up notably so far in 2025 due to a solid AI and Wi-Fi 6 momentum. It announced that Chinese chipmaker WUQI licensed its Ceva-Waves Wi-Fi 6 IP for a new combo chip (WQ9201).
CEVA also partnered with Edge Impulse to streamline AI model deployment on its NeuPro-Nano NPUs. It targets AIoT and MCU markets. Plus, it has integrated with NVIDIA’s TAO Toolkit to make its computer vision better.
Moreover, Q3 2024 earnings came in solid. Revenue grew 13% year-over-year to $27.2 million. Non-GAAP EPS grew to $0.14, up 133% year-over-year, and the expectations for 2024 revenue growth growth were raised to 7% to 9%.
The consensus price target of $34.2 implies 0.5% upside.
CEVA stock is up 6.85% year-to-date.
10. Cirrus Logic Inc (NASDAQ:CRUS)
Number of Hedge Fund Holders In Q3 2024: 28
Cirrus Logic Inc (NASDAQ:CRUS) is a fabless semiconductor company. It focuses on low-power products, which aligns well with the post-DeepSeek trends about AI chips.
The stock is up so much this year due to upgraded analyst sentiment after its Q3 FY2025 earnings beat. It reported $555.7 million in revenue, which came in 15% above guidance at midpoint.
Non-GAAP gross margin hit 53.6% and is up 230 bps year-over-year. Non-GAAP EPS came in at $2.51 and beat estimates, with operating income up 30.4%. As a result, Benchmark upgraded CRUS to a Buy with a $125 target.
The consensus price target of $134.2 implies 24.5% upside.
CRUS stock is up 7% year-to-date.
9. Monolithic Power Systems Inc (NASDAQ:MPWR)
Number of Hedge Fund Holders In Q3 2024: 38
Monolithic Power Systems Inc (NASDAQ:MPWR) is a fabless semiconductor company that specializes in high-performance power management.
The stock is up by double digits so far in 2025 due to AI and data center demand remaining strong. Q3 revenue grew 30.6% to $620.1 million and AI-related segments contributed significantly. Oppenheimer projects more growth this year due to a recovery in non-AI markets.
For example, automotive revenue increased 28% sequentially in Q3 2024. Analysts anticipate that its Q4 2024 report will see continued growth in both automotive and AI-related sectors.
The consensus price target of $820.33 implies 25.18% upside.
MPWR stock is up 10.93% year-to-date.
8. Qualcomm Inc (NASDAQ:QCOM)
Number of Hedge Fund Holders In Q3 2024: 74
Qualcomm Inc (NASDAQ:QCOM) is a semiconductor company that is best known for its Snapdragon processors. These processors are very popular on Android phones.
The stock is up solidly so far in 2025 as expectations for Q1 2025 earnings are solid. Analysts project earnings of $2.96 per share, up 8% year-over-year, and revenue of $10.9%, up 9.9% year-over-year.
Automotive revenue is expected to rise 50% year-over-year, along with IOT at over 20% year-over-year. Qualcomm is also targeting the AI laptop market which could generate billions in future revenue.
Moreover, Qualcomm won a legal battle against Arm Holdings and the stock has proven surprisingly resilient with tariffs and trade wars going on.
The consensus price target of $206.57 implies 18.63% upside.
QCOM stock is up 13% year-to-date.
7. Allegro Microsystems Inc (NASDAQ:ALGM)
Number of Hedge Fund Holders In Q3 2024: 14
Allegro Microsystems Inc (NASDAQ:ALGM) makes sensor integrated circuits (ICs) and analog power ICs.
The stock has been rising markedly so far in 2025 after it announced a $375 million debt refinancing plan in January. It replaced existing loans with a first lien term facility that matures in 2030 and extends old debt maturity.
The company also reduced its interest expense guidance for Q4 2025 to about $6 million from $7.8 million in Q3.
Q3 2025 results and guidance came in strong too. It beat revenue by reporting $177.9 million vs. $176.34 million expected. Non-GAAP EPS came in at $0.07 vs. $0.06. Q4 2025 guidance projects sequential revenue growth ($180M-$190M range) and non-GAAP EPS of $0.03-$0.07.
The consensus price target of $30.70 implies 25.63% upside.
ALGM stock is up 14.25% year-to-date.
6. Alpha & Omega Semiconductor Ltd (NASDAQ:AOSL)
Number of Hedge Fund Holders In Q3 2024: 13
Alpha & Omega Semiconductor Ltd (NASDAQ:AOSL) makes power semiconductor products.
The stock is up quite a bit so far in 2025 after fiscal Q2 2025 results. It reported $173.2 million in revenue in Q2 2025, down 4.8% year-over-year. Non-GAAP EPS came in at $0.09 and cash stood at $182.6 million. GAAP gross margin fell to 23.1% in Q2 (vs. 26.6% YoY) due to pricing competition.
Management expects a seasonal Q3 decline but foresees long-term growth in automotive and renewable energy markets.
The consensus price target of $38 implies 11.17% downside.
AOSL stock is up 14.47% year-to-date.
5. MagnaChip Semiconductor Corp (NYSE:MX)
Number of Hedge Fund Holders In Q3 2024: 21
MagnaChip Semiconductor Corp (NYSE:MX) makes analog and mixed-signal semiconductor products.
The stock has gained considerably year-to-date as the company announced it is up for sale.
Plus, the CEO bought $100,000 worth of shares in 2024 and MX reported increased demand for power semiconductors.
The company’s low debt/equity ratio also makes it an acquisition target for other companies, though MX reported a $9.62 million net loss in Q3 2024, with revenue up 8.51% year-over-year.
The consensus price target of $7.5 implies 65% upside
MX stock is up 14.68% year-to-date.
4. Silicon Laboratories Inc (NASDAQ:SLAB)
Number of Hedge Fund Holders In Q3 2024: 18
Silicon Laboratories Inc (NASDAQ:SLAB) is a fabless semiconductor company that specializes in analog-intensive mixed-signal products for IoT applications.
The stock has delivered solid gains so far in 2025 due to Q4 2024 earnings beating and upbeat guidance. Q4 revenue was reported at $166.25 million, which grew 91.4% year-over-year.
GAAP operating loss also narrowed to $29 million vs. $73 million in the year-ago period. Silicon Laboratories issued Q1 2025 guidance of $170 million to $185 million, and the midpoint implies 67% year-over-year growth with improved EPS in the range of -$0.19 to $0.01.
The consensus price target of $136.2 implies 6.79% upside.
SLAB stock is up 19.91% year-to-date.
3. KLA Corp (NASDAQ:KLAC)
Number of Hedge Fund Holders In Q3 2024: 61
KLA Corp (NASDAQ:KLAC) is a semiconductor manufacturing equipment and process control company.
The stock has returned stellar gains so far in 2025 after strong Q2 FY2025 earnings and AI-driven demand. KLAC surged after the company reported $3.08 billion in revenue, up 23.7% year-over-year, and adjusted EPS came in at $8.2, up 11.9% year-over-year.
As a result, Wells Fargo raised KLAC’s price target to $870 and cited the company’s leadership in process control and exposure to AI-driven wafer fab equipment spending. It holds a 50% market share in the $12 billion process control market.
In addition, KLA now expects 2025 revenue growth of ~20%, up from prior estimates, as foundry/logic and DRAM markets rebound. DRAM wafer fab equipment spending is projected to rise in 2025 due to AI memory.
The consensus price target of $831.68 implies 9.56% upside.
KLAC stock is up 20.11% year-to-date.
2. Nova Ltd (NASDAQ:NVMI)
Number of Hedge Fund Holders In Q3 2024: 26
Nova Ltd (NASDAQ:NVMI) is a semiconductor company that specializes in advanced metrology and process control systems.
The stock has been surging after it completed its $60 million all-cash acquisition of Sentronics Metrology. It is a German firm that specializes in wafer-level packaging and backend semiconductor metrology tools.
It is expected to be accretive to non-GAAP earnings within 12 months.
It also reported strong Q3 results and has a solid 2025 outlook. Revenue grew 39% year-over-year to $179 million and non-GAAP EPS growth of 41% year-over-year to $1.74. Analysts project 19.5% revenue growth and 12.9% EPS growth for 2025, with Nova positioned to benefit from gate-all-around (GAA) transistor adoption and backside power delivery trends. Cumulative GAA-related revenue is projected to reach $500 million by 2026.
The consensus price target of $238.33 implies 4.35% downside.
NVMI stock is up 26.7% year-to-date.
1. ACM Research (NASDAQ:ACMR)
Number of Hedge Fund Holders In Q3 2024: 23
ACM Research (NASDAQ:ACMR) manufactures advanced wafer processing equipment for semiconductors.
The stock has surged so far in 2025 due to a short seller posting a bullish report about the company. Kerrisdale Capital announced a long position, projecting ACMR as the “ultimate 10-bagger.” This is because ACMR trades at 1.1x 2025 revenue vs. peers at 5 to 8x. Kerrisdale estimates a base case of $3 billion+ revenue and $10 billion+ market cap by 2028.
Moreover, ACMR owns 82% of ACM Shanghai, which trades at a $5.9 billion valuation on the Shanghai STAR Market, implying a $4.9 billion valuation for ACMR vs. its $1.1 billion cap pre-report.
The consensus price target of $30 implies 43.29% upside.
ACMR stock is up 37.76% year-to-date.
While we acknowledge the potential of ACMR 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 is more promising than ACMR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: Why These 15 Healthcare Stocks Are Skyrocketing So Far In 2025 and Why These 15 Mining Stocks Are Skyrocketing So Far In 2025
Disclosure: None. This article was originally published at Insider Monkey.
