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.
8. QUALCOMM Incorporated (NASDAQ:QCOM)
Number of Hedge Fund Holders: 82
QUALCOMM Incorporated (NASDAQ:QCOM) is one of the 10 Best American Semiconductor Stocks to Buy Now. On June 3, Bernstein SocGen Group analysts reiterated an “Outperform” rating for QUALCOMM Incorporated (NASDAQ:QCOM) and kept their price target at $185.
This decision comes after the firm took part in a Best Ideas panel at Bernstein’s 41st annual Strategic Decisions Conference the previous week.
During the panel, QUALCOMM Incorporated (NASDAQ:QCOM) was described as one of the more interesting and unconventional investment ideas by the firm’s analysts. Bernstein SocGen Group analysts pointed out that while QUALCOMM Incorporated (NASDAQ:QCOM) might not be their top pick, it is still an attractive choice because of its strong market position.
QUALCOMM Incorporated (NASDAQ:QCOM) is an American multinational corporation that creates semiconductors, software, and services related to wireless technology. The company’s portfolio includes products for processors, modems, platforms, RF systems, and connectivity.
7. Applied Materials, Inc. (NASDAQ:AMAT)
Number of Hedge Fund Holders: 83
Applied Materials, Inc. (NASDAQ:AMAT) is one of the 10 Best American Semiconductor Stocks to Buy Now. On June 5, Morgan Stanley analysts upgraded Applied Materials, Inc. (NASDAQ:AMAT) to “Equal Weight” from “Underweight” and set a new price target of $158, which is lower than the previous target of $162.
Morgan Stanley’s revenue and earnings per share estimates for Applied Materials, Inc. (NASDAQ:AMAT) for the fiscal year 2026 are 8% and 10% below the market consensus, respectively. Morgan Stanley analysts explained that they based the new price target on a 17 times multiple of the company’s expected earnings per share for 2026, which is estimated to be $9.31.
The firm has a cautious view of the leading logic and DRAM markets. Morgan Stanley also adjusted their fiscal year 2025 forecasts for Applied Materials, Inc. (NASDAQ:AMAT). The firm expects the company to report $28.6 billion in revenue and earnings per share of $9.36. For fiscal year 2026, Morgan Stanley revised its estimates to $28.1 billion in revenue and $9.04 in earnings per share.
Applied Materials, Inc. (NASDAQ:AMAT) is an American corporation that specializes in materials engineering solutions for the semiconductor and flat panel display industries.
6. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 91
Intel Corporation (NASDAQ:INTC) is one of the 10 Best American Semiconductor Stocks to Buy Now. The company is focused on driving improved execution and operational efficiency. Intel Corporation (NASDAQ:INTC) aims to lower its operating expenses to $17 billion in 2025, which is less than the previously stated goal of $17.5 billion. For 2026, the company aims to reduce operating expenses further to $16 billion.
To achieve this, Intel Corporation (NASDAQ:INTC) plans to streamline its organization by cutting down on management layers. The company also plans to focus on supporting its engineering teams to create better products. At the same time, the company will be looking to increase accountability and make it easier for customers to do business with Intel Corporation (NASDAQ:INTC).
Intel Corporation (NASDAQ:INTC) has a large market share in both the client and data center markets. The company is shifting its focus to build competitive products that meet the needs of its customers, especially as the computing world shifts towards AI agents and reasoning models. Intel Corporation (NASDAQ:INTC) will be looking to redefine its portfolio to optimize its products for new and emerging AI workloads.
Intel Corporation (NASDAQ:INTC) is an American semiconductor manufacturing company. It is one of the world’s largest manufacturers of central processing units (CPUs) and semiconductors.
5. Lam Research Corporation (NASDAQ:LRCX)
Number of Hedge Fund Holders: 91
Lam Research Corporation (NASDAQ:LRCX) is one of the 10 Best American Semiconductor Stocks to Buy Now. On April 24, TD Cowen reduced the price target for Lam Research Corporation (NASDAQ:LRCX) from $110 to $100 but kept a “Buy” rating.
TD Cowen analysts noted that key catalysts for Lam Research Corporation’s (NASDAQ:LRCX) future growth include higher deposition/etch intensity and a recovery in NAND Wafer Fabrication Equipment (WFE). The analysts also pointed out that the company’s guidance for the June quarter was strong and it beat consensus revenue estimates by 9%. This was mainly supported by strong demand in the NAND and Foundry markets, including Chip on Wafer on Substrate (CoWoS) and Gate-All-Around (GAA) technologies.
The firm’s analysts see these results as good news for Lam Research Corporation (NASDAQ:LRCX), which is focusing on growing its market share in the Foundry segment.
Lam Research Corporation (NASDAQ:LRCX) is a global supplier of wafer fabrication equipment and services to the semiconductor industry.
4. Micron Technology, Inc. (NASDAQ:MU)
Number of Hedge Fund Holders: 96
Micron Technology, Inc. (NASDAQ:MU) is one of the 10 Best American Semiconductor Stocks to Buy Now. On June 5, UBS analysts increased the price target for Micron Technology, Inc. (NASDAQ:MU) from $92 to $120 and kept a “Buy” rating. This decision came after a round of industry checks that showed a more stable demand environment for DDR across various end markets. This stability is supported by not only smartphones and PCs, but also by increased demand for server DDR5 from hyperscalers.
UBS analysts expect the average selling price of DDR to increase by 7% in the second quarter and by 3% in the third quarter. The analysts did not change the price expectations for NAND, but they pointed out that if suppliers keep their supply disciplined, it could have a positive impact.
Additionally, UBS adjusted its forecast for High Bandwidth Memory (HBM) demand while noting that the ramp-up of AI chips like Google’s TPU v6e/v7 and AWS’s Trainium 3 is slower than expected. UBS analysts expect industry demand of about 16.3 billion gigabits of HBM in 2025 and 25.4 billion gigabits in 2026.
Micron Technology, Inc. (NASDAQ:MU) is expected to ship its HBM3E 12-Hi to NVIDIA in June, which is later than the previously expected time of April or May. UBS analysts believe this delay will only have a limited impact on the company’s topline. However, they think Micron Technology, Inc. (NASDAQ:MU) could grow if the market becomes more confident in the company’s earnings potential for 2026 and later.
Micron Technology, Inc. (NASDAQ:MU) is a leading semiconductor technology company that is known for its innovative memory and storage solutions.
3. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 97
Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the 10 Best American Semiconductor Stocks to Buy Now. On June 13, UBS kept its “Buy” rating with a price target of $150 for Advanced Micro Devices, Inc. (NASDAQ:AMD) after the company’s AI event. The firm noted that the event met expectations. UBS analysts also highlighted Amazon as a new customer and a surprise appearance at the event by OpenAI’s CEO, Sam Altman.
The event focused on AMD’s MI355X chip launch and Advanced Micro Devices, Inc. (NASDAQ:AMD) also confirmed that a version of the MI400 chip will be released by mid-2026. The company highlighted the size and rapid growth of the inference market, which UBS believes is in line with AMD’s structural advantages in HBM memory bandwidth. These advantages will benefit the company’s MI400 rack-scale product, called Helios, which will have 1.5 times more HBM4 capacity and bandwidth than NVIDIA’s Vera Rubin “Oberon” system. According to UBS, both of these products are expected to launch around the same time.
Advanced Micro Devices, Inc. (NASDAQ:AMD) chose to use Ethernet to scale up inside the rack for Helios. UBS sees this as a positive for Broadcom.
Advanced Micro Devices, Inc. (NASDAQ:AMD) is a global semiconductor company that is known for its graphics processing units (GPUs), microprocessors, and high-performance computing solutions. The company serves a range of high-growth industries like gaming, data centers, and AI.
2. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 158
Broadcom Inc. (NASDAQ:AVGO) is one of the 10 Best American Semiconductor Stocks to Buy Now. On June 6, HSBC analysts raised the price target for Broadcom Inc. (NASDAQ:AVGO) from $225 to $240 and kept a “Hold” rating. This adjustment came after the $15.8 billion. This represents a 5% growth quarter-over-quarter and is in line with consensus estimates.
For Q3 fiscal year 2025, Broadcom Inc. (NASDAQ:AVGO) provided AI revenue guidance of $5.1 billion, representing a 16% increase quarter-over-quarter and above HSBC’s estimate of $4.6 billion and the consensus estimate of $4.7 billion. This growth is supported by strong quarter-over-quarter sales of ASIC chips.
Broadcom Inc.’s (NASDAQ:AVGO) non-AI semiconductor revenues and infrastructure software revenues are expected to stay stable quarter-over-quarter. The company’s gross margin guidance for Q3 fiscal year 2025 stands at 78.1%, which is 135 basis points lower. This decrease is attributed to a higher ASIC mix. Despite that, this figure is still higher than HSBC’s estimate of 77.1% and the consensus estimate of 77.6%.
Broadcom Inc. (NASDAQ:AVGO) is an American multinational technology company that designs, develops, and supplies a wide range of semiconductor, enterprise software, and security solutions.
1. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 212
NVIDIA Corporation (NASDAQ:NVDA) is one of the 10 Best American Semiconductor Stocks to Buy Now. On May 29, Citi analysts raised the price target for NVIDIA Corporation (NASDAQ:NVDA) from $150 to $180 and kept a Buy rating. This decision came after the company’s April-quarter results that met forecasts. NVIDIA Corporation (NASDAQ:NVDA) projects revenue to be $45 billion in the July-quarter, which is around $1 billion higher than Citi’s estimates. This strong performance and outlook shows that the company has effectively managed the difficult transition following the China H20 ban.
NVIDIA Corporation’s (NASDAQ:NVDA) Blackwell product line generated $24 billion in sales, exceeding the expected $20 billion. The company’s management has also confirmed its target of achieving gross margins in the mid-70s range later this year, showing confidence due to improving Blackwell profitability.
Citi revised its earnings per share (EPS) forecasts for NVIDIA Corporation (NASDAQ:NVDA) for fiscal years 2026, 2027, and 2028. The firm now expects flat EPS growth for fiscal year 2026, a 9% increase in fiscal year 2027, and a 5% rise in fiscal year 2028. These changes reflect expectations of higher gross margins.
While we acknowledge the potential of NVDA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NVDA and that has a 100x upside potential, 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.
Disclosure: None.
