In this article, we will discuss the 10 Best Performing Semiconductor Stocks So Far in 2026.
On May 14, Ankur Crawford, Alger EVP, joined CNBC’s ‘Closing Bell’ to state that she is not worried about a potential market bubble forming. She explained that it is simply too early for such concerns because earnings numbers are continuously rising for all AI-related stocks, and she believes that these numbers are still too low. In fact, she predicts that these figures will likely remain low relative to their actual potential for the next two to three years.
Crawford recalls appearing on the show in 2024 and predicting that CapEx would rise sequentially through 2025, 2026, 2027, and 2028. Pointing out that it is currently only 2026, she observed that CapEx is indeed going up and that it is already known that it will rise in 2027. She expressed her belief that spending in 2028 will also increase because the industry is fundamentally short on compute. Consequently, the entire technology supply chain needs to adjust itself to satisfy this overwhelming demand for computation.
Earlier in February this year, Deloitte reported that the global semiconductor industry is projected to hit a historic peak of $975 billion in annual sales in 2026, driven by a 26% growth rate fueled by AI infrastructure. However, this boom masks a stark structural paradox: high-value GenAI chips are expected to generate roughly half of the industry’s total revenue ($500 billion) while making up less than 0.2% of total unit volume.
This value concentration has propelled the market capitalization of the top ten chip companies to $9.5 trillion (with the top three dominating 80% of that total) while non-data center segments like PCs and smartphones face slower growth and projected declines due to soaring memory prices. While 2026 revenues are secured by backlogs, the industry faces sharp risks for 2027 and 2028 if organizations experience delayed AI return on investment, severe power grid constraints, or deflationary pricing from new competitors.
Our Methodology
We used screeners to identify semiconductor stocks that have exhibited high year-to-date performance (at least 130%), and limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds. The stocks are ranked in ascending order of their share price performance.
Note: All data was sourced on May 15.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10 Best Performing Semiconductor Stocks So Far in 2026
10. Tower Semiconductor Ltd. (NASDAQ:TSEM)
Year-to-Date Performance: 133.33%
Tower Semiconductor Ltd. (NASDAQ:TSEM) is one of the best performing semiconductor stocks so far in 2026. On May 13, Tower Semiconductor signed Silicon Photonics/SiPho customer contracts valued at $1.3 billion for 2027 revenue. The company has already secured $290 million in customer prepayments for capacity reservations from its largest clients. This initial commitment is backed by an even larger contractual wafer commitment for 2028, with the corresponding prepayments due by January 2027.
The capacity reservations reflect minimum contractual commitments, though total shipment forecasts and demand from over 50 active SiPho clients are expected to be higher. To meet this accelerating demand, Tower is executing a global multi-fab capacity ramp. This expansion underpins its 2028 long-term financial model, which targets $2.8 billion in total revenue and $750 million in net profit.
The multi-year agreements are driven by rapid AI infrastructure growth and escalating data center bandwidth demands. To support next-gen hardware, Tower Semiconductor Ltd. (NASDAQ:TSEM) is investing in advanced optical architectures, including 400GHz/lane performance, optical circuit switches, and 3DIC hybrid-bonding. The company is also collaborating with industry innovators on next-gen modulators for ultra-high-bandwidth data transmission.
Tower Semiconductor Ltd. (NASDAQ:TSEM) is a leading independent foundry specializing in high-value analog semiconductor solutions. It manufactures customized analog ICs (including radio frequency (RF), power management, and CMOS image sensors) for over 300 customers.
9. STMicroelectronics (NYSE:STM)
Year-to-Date Performance: 136.74%
STMicroelectronics (NYSE:STM) is one of the best performing semiconductor stocks so far in 2026. On April 28, STMicroelectronics introduced its next generation of ultralow-power global-shutter image sensors, the monochrome VD55G4 and the RGB color VD65G4. Part of the ST BrightSense portfolio, these compact, microcontroller-compatible sensors are engineered for battery-operated or energy-harvesting personal electronics. They target high-growth applications, including wearables, AR/VR/XR headsets, smart home appliances, and portable medical devices.
The new sensors feature an optimized detect-and-wake architecture that allows them to consume up to 10x less power than conventional global-shutter sensors during standard operation. By continuously monitoring a scene and waking the main processor only when changes occur, they enable event-driven operation. This reduces standby power and extends battery life while delivering AI-ready data locally at the edge.
Manufactured on 300 mm wafers using a 3D-stacked 65 nm / 40 nm architecture at STMicroelectronics’ Crolles plant, the sensors are currently available to early adopters. To accelerate product development, STMicroelectronics (NYSE:STM) is rolling out a comprehensive companion ecosystem. This includes turnkey camera modules, evaluation software, and dedicated development boards for popular platforms like STM32 and Raspberry Pi.
STMicroelectronics (NYSE:STM) is a technology company that specializes in semiconductor products and operates through four segments: AM&S (Analog products, MEMS & Sensors Group), P&D (Power and Discrete products), EMP (Embedded Processing), and D&RF (RF Products).
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