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).
8. Ambiq Micro Inc. (NYSE:AMBQ)
Year-to-Date Performance: 147.61%
Ambiq Micro Inc. (NYSE:AMBQ) is one of the best performing semiconductor stocks so far in 2026. On May 12, Ambiq reported Q1 2026 GAAP net sales of $25.1 million, exceeding guidance and marking a 59.3% increase year-over-year. This growth was driven by expanding edge AI demand, with over 80% of units shipped running AI algorithms. The company reported a GAAP net loss of $10.2 million, an improvement from a $10.7 million loss in the previous quarter, while non-GAAP net loss narrowed slightly to $5.0 million.
GAAP gross margin came in at 43.5%, while non-GAAP gross margin reached 46.2%, reflecting optimized production processes and improved manufacturing efficiencies. Operating expenses rose 31.8% year-over-year to $22.6 million on a GAAP basis. Ambiq also improved its revenue diversification, as its top three customers accounted for 71% of net sales compared to 86% in the prior year period.
On the operational front, the company expanded its R&D footprint through a multi-year partnership with Singapore’s Economic Development Board. Ambiq Micro Inc. (NYSE:AMBQ) also revealed its next-generation 12nm SPOT platform for the upcoming Atomiq SoC, enabling low-voltage operations down to 300mV. Looking ahead, management expects strong Q2 2026 net sales between $31 and $32 million.
Ambiq Micro Inc. (NYSE:AMBQ) is a Texas-based company providing ultra-low-power semiconductor solutions, as well as technical support services. Incorporated in 2010, the company offers its products through an internal direct sales force, distributors, and sales representatives.
7. POET Technologies Inc. (NASDAQ:POET)
Year-to-Date Performance: 152.29%
POET Technologies Inc. (NASDAQ:POET) is one of the best performing semiconductor stocks so far in 2026. On May 14, POET Technologies and Lumilens entered into a joint development and supply agreement to advance wafer-level photonic integration for frontier AI infrastructure. The collaboration introduces a new integration paradigm called the Electrical-Optical Interposer/EOI. This platform aims to eliminate traditional active-alignment manufacturing constraints, enabling high-volume, cost-efficient production that scales alongside hyperscaler GPU growth.
As part of the commercial framework, Lumilens has placed an initial $50 million purchase order with POET for EOI-based engines. This agreement marks the first phase of a broader supplier relationship that has the potential to scale to more than $500 million in cumulative purchases over the next 5 years. To align long-term strategic value, POET has granted Lumilens a nine-year warrant to purchase up to ~22.9 million common shares at an exercise price of $8.25 per share, vesting in tranches tied to future purchase milestones.
The joint multi-year roadmap spans from 800G and 1.6T pluggable transceivers to high-density Near-Package Optics/NPO and Co-Packaged Optics/CPO solutions. Fulfillment of these purchase orders and future revenue realization remain subject to successful development, module qualification, and manufacturing scaling. Engineering samples from the joint development program are projected to be available in late 2026, with a production ramp scheduled for 2027.
POET Technologies Inc. (NASDAQ:POET) is a firm that designs, develops, manufactures, and sells optoelectronic products for the sensing, data transfer, and telecommunications markets. It created the POET Optical Interposer platform, which allows the combination of electronic and photonic devices into a single multi-chip module.
6. Vishay Intertechnology Inc. (NYSE:VSH)
Year-to-Date Performance: 156.84%
Vishay Intertechnology Inc. (NYSE:VSH) is one of the best performing semiconductor stocks so far in 2026. On May 13, Vishay Intertechnology introduced four new series of 3000 W surface-mount transient voltage suppressors/TVS housed in the new DFN6546A package with wettable flanks. The rollout includes the Automotive Grade T3KNxxA and T3KNxxCA series, which are AEC-Q101 qualified and support high-temperature operation up to +185°C. For industrial applications, the 3KDFNxxA and 3KDFNxxCA series meet the LL15i Industrial Reliability Qualification.
The DFN6546A package features a compact 6.5 mm x 4.6 mm footprint and a low typical profile of 0.88 mm. It is footprint-compatible with the traditional TO-277A package but delivers twice the power dissipation with a 20% lower profile. Compared to standard DO-214AB packages, the new design offers the same 3000 W power dissipation while reducing total component volume by 76%.
Designed to protect sensitive electronics from voltage transients, the unidirectional and bidirectional diodes provide clamping capabilities up to 137 V. The package’s wettable flanks support automated optical inspection/AOI, eliminating the need for X-ray checks during manufacturing. Samples and production quantities are currently available with standard lead times of 12 weeks.
Vishay Intertechnology Inc. (NYSE:VSH) manufactures and sells a global portfolio of discrete semiconductors and passive electronic components across six specialized product segments. The company serves diverse global markets, including automotive, industrial, computing, military, aerospace, and healthcare.
While we acknowledge the potential of VSH to grow, 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 VSH and that has 100x upside potential, check out our report about the cheapest AI stock.
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