The semiconductor industry is a crucial and rapidly growing industry that supports modern technology, including AI, data centers, and high-performance computing.
In May 2025, the Semiconductor Industry Association (SIA) reported that global semiconductor sales reached $167.7 billion for the first quarter of 2025. This represents an increase of 18.8% year-over-year. However, it is a decrease of 2.8% compared to the sales in the fourth quarter of 2024. SIA represents 99% of the US semiconductor industry by revenue and about two-thirds of the global chip companies outside the US.
Looking at just March 2025, global sales were $55.0 billion. This represents a slight increase of 1.8% compared to February 2025, when global sales were $54.9 billion. Monthly sales numbers come from the World Semiconductor Trade Statistics (WSTS) organization and represent a 3-month moving average.
John Neuffer, the president and CEO of SIA, noted that global demand for semiconductors remains strong. He pointed out that sales in the first quarter of 2025 significantly outpaced the sales during the same period in 2024. Neuffer also explained that semiconductor sales have grown year-over-year by more than 17% for 11 months in a row. This growth seems to be especially strong in the Americas region, where sales in March were up 45.3% year-over-year.
With this background in mind, let’s take a look at the 10 best American semiconductor stocks to buy now.
High angle view of a semiconductor chip against an array of electronics components.
Our Methodology
To compile our list of the 10 best American semiconductor stocks to buy now, we used stock screeners from Finviz and Yahoo Finance to find the largest American semiconductor companies. We sorted our results based on market capitalization and picked the 30 largest American stocks. We also reviewed various financial media reports and online resources. Next, we focused on the top 10 stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q1 2025 database of 1,000 elite hedge funds. Finally, the 10 best American semiconductor stocks to buy now were ranked in ascending order based on the number of hedge funds holding stakes in them as of Q1 2025.
Why do we care about what hedge funds do? 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. Marvell Technology, Inc. (NASDAQ:MRVL)
Number of Hedge Fund Holders: 73
Marvell Technology, Inc. (NASDAQ:MRVL) is one of the 10 Best American Semiconductor Stocks to Buy Now. On May 30, Barclays reaffirmed its “Overweight” rating on Marvell Technology, Inc. (NASDAQ:MRVL) and kept the price target steady at $80.
The endorsement comes as the semiconductor company highlighted progress in its technology, especially its work on 3nm process technology in partnership with Amazon. The company has also secured wafer capacity and is open to using multiple suppliers to meet its production needs.
Marvell Technology, Inc.’s (NASDAQ:MRVL) collaboration with Microsoft is also going well, focusing on the next generation of XPU computing units. However, there are concerns about the optical segment, where the company might experience weaker demand in July, possibly because of tougher competition in the digital signal processor (DSP) market compared to last year.
Barclays analysts also highlighted Marvell Technology, Inc.’s (NASDAQ:MRVL) strategy of buying back its shares, which is expected to be bolstered by the expected sale of its automotive division later this year.
Marvell Technology, Inc. (NASDAQ:MRVL) is an American company that develops and produces semiconductors and related technology for various applications, including AI, data centers, compute, networking, and storage infrastructure.
9. Analog Devices, Inc. (NASDAQ:ADI)
Number of Hedge Fund Holders: 79
Analog Devices, Inc. (NASDAQ:ADI) is one of the 10 Best American Semiconductor Stocks to Buy Now. On May 22, Wolfe Research reduced its price target for Analog Devices, Inc. (NASDAQ:ADI) from $295 to $280 but kept an “Outperform” rating.
The firm’s analyst, Chris Caso, explained that the reduced price target is based on a valuation of about 28 times Analog Devices, Inc.’s (NASDAQ:ADI) expected EPS of around $10. This is a slight increase from the company’s historical average multiple of 27 times.
Wolfe Research continues to have a positive outlook for Analog Devices, Inc. (NASDAQ:ADI) despite the reduced price target. Following the company’s fiscal second quarter 2025 financial results, the analyst slightly increased the EPS forecast for the 2026 fiscal year to $9.15 per share. The forecast for calendar year 2026 is $9.60 per share, which is close to the firm’s long-standing expectation that Analog Devices, Inc. (NASDAQ:ADI) can reach $10 EPS.
Caso noted that Analog Devices, Inc. (NASDAQ:ADI) is trading at about 22 times its expected earnings power, which is seen as reasonable. However, for the stock price to grow steadily, the company will need to show a higher earnings power.
Analog Devices, Inc. (NASDAQ:ADI) is an American multinational semiconductor company that focuses on data conversion, signal processing, and power management technologies.
