The global semiconductor market is poised for substantial growth, with research firm MarketsandMarkets estimating its value to reach $628 billion in 2024 and expand to $707 billion by 2025, reflecting a robust 12.5% growth rate. The firm, in their Global Semiconductor Industry Outlook 2025 report, also highlights that this surge is driven by increasing demand for semiconductors in data centers, high-performance computing (HPC), and artificial intelligence (AI) applications. As AI adoption accelerates, semiconductors are cementing their role as the foundation of next-generation digital infrastructure. The rising needs of hyperscalers and cloud service providers, particularly in handling AI workloads, are expected to further drive semiconductor industry expansion.
Further, MarketsandMarkets notes that the key growth drivers for the semiconductor sector in 2025 include high-bandwidth memory (HBM) that is crucial for AI accelerators and GPUs, AI servers that power deep learning and real-time analytics, and Gen-AI smartphones featuring advanced AI-integrated chips. However, the industry faces notable challenges as well, including supply chain disruptions and evolving regulatory frameworks that impact production costs, market access, and overall growth.
The cyclical nature of the semiconductor industry and ongoing uncertainties, such as tariffs and trade policies, have been major discussion points among investors. Jordan Klein, Managing Director at Mizuho Securities, had addressed the industry’s demand outlook in a CNBC interview, emphasizing that semiconductor stocks often anticipate market fundamentals six months in advance. While AI-driven companies like NVIDIA are experiencing strong demand, other segments, such as memory, PCs, and industrial chips, are not delivering significant earnings surprises. Meanwhile, investors are increasingly favoring sectors like software and fintech over semiconductors. Klein also raised concerns about a potential slowdown in 2025, suggesting that many investors are currently adopting a “wait and see” approach rather than buying in expectation of near-term improvements. While AI-driven semiconductor companies are likely to maintain momentum, weaker segments may struggle to recover in the short term.
So far, Klein’s take seems to be playing out. The S&P Semiconductors Industry Index is down nearly 13% in 2025, significantly lagging the broader S&P 500, which has fallen about 3.5%. But there’s a silver lining—historically, when semiconductor companies start cutting earnings estimates, their stock prices tend to rebound because those cuts are often already priced in. This could create buying opportunities for long-term investors.
Despite short-term headwinds, the long-term outlook for semiconductors remains strong. AI, cloud computing, and HPC will continue to push demand for advanced chips, and while cyclical downturns and regulatory challenges may create volatility, they also open the door for investors to buy quality semiconductor stocks at lower valuations. Keeping an eye on earnings revisions and broader market trends could help investors find solid entry points in this ever-evolving industry.
On that note, let’s take a closer look at our selection of 10 best semiconductor stocks to buy according to billionaires.
A close-up of a technician’s hands working on an advanced semiconductor substrate.
Our Methodology
For this list, we first compiled a preliminary list of Semiconductors and Semiconductor Equipment & Materials stocks using a review of online screeners, ETFs and financial media reports. We then analysed Insider Monkey’s database of billionaire holdings to determine the most favoured semiconductor stocks among those investors. We then ranked top 10 of these stocks in ascending order based on the number of billionaire investors holding positions in each company as of Q4 2024. Additionally, we also provide data to assess hedge fund sentiment surrounding these stocks, utilizing data from Insider Monkey’s Q4 2024 hedge fund database to provide deeper insights into institutional investor trends.
Note: All pricing data is as of market close on March 20.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Best Semiconductor Stocks to Buy According to Billionaires
10. Intel Corp. (NASDAQ:INTC)
Number of Billionaire Investors: 15
Billionaire Holdings: $953 million
Number of Hedge Fund Holders: 83
Intel Corp. (NASDAQ:INTC) is a global leader in designing and manufacturing microprocessors and semiconductor components, powering everything from personal computers to data centers and IoT applications. The company is well known for its innovations in CPU architecture and process technology, maintaining a significant presence in the semiconductor industry.
On March 19, Intel Corp. (NASDAQ:INTC)’s stock dropped 7% after a report from media agency DigiTimes stirred up speculation. The report cited Paul Liu, head of Taiwan’s National Development Council (NDC) and a board member at Taiwan Semiconductor Manufacturing (NYSE:TSM), who dismissed rumors that TSMC was looking to buy Intel’s foundry business. Liu clarified that such a deal had never even been discussed at the board level. To make his point clear, he compared the idea to mixing diesel with gasoline, something that just wouldn’t work.
Meanwhile, Reuters reported that Nvidia Corp. (NASDAQ:NVDA) CEO Jensen Huang also denied any involvement in acquiring a stake in Intel Corp. (NASDAQ:INTC). His comments came after reports suggested that a consortium, including TSM, was considering taking over Intel’s factories. Even though these rumors have been debunked, they’ve helped push Intel’s stock higher in recent months.
On March 18, Intel announced that Lip-Bu Tan would take over as its permanent CEO, a move that was met with optimism. Tan is a well-respected leader in the tech world, and his appointment has sparked hope that he’ll help steer the company in a better direction. Analysts seem to agree—on March 20, Northland Securities analyst Gus Richard reiterated his Buy rating on Intel’s stock, setting a price target of $28.
9. Advanced Micro Devices Inc. (NASDAQ:AMD)
Number of Billionaire Investors: 18
Billionaire Holdings: $5.1 billion
Number of Hedge Fund Holders: 96
Advanced Micro Devices Inc. (NASDAQ:AMD) is a leading semiconductor company specializing in high-performance computing and graphics solutions. Its broad product portfolio includes microprocessors, graphics processors, and system-on-chip (SoC) solutions designed for data centers, gaming, and embedded systems. Over the years, AMD has gained notable market share in both the CPU and GPU markets, competing directly with Intel Corp. (NASDAQ:INTC) and NVIDIA Corp. (NASDAQ:NVDA).
On March 14, a Mizuho Securities analyst lowered the price target for the company from $140 to $120 while maintaining an Outperform rating. The revision reflected expected challenges in AMD’s artificial intelligence (AI) growth, particularly in gaining market share for Chip-on-Wafer-on-Substrate (CoWoS) technology. Despite these hurdles, the analyst remains optimistic about AMD’s potential in the server and PC markets, citing the company’s strong financial position and manageable debt levels as key factors supporting its long-term performance.
On March 12, JP Morgan analyst Harlan Sur had also given a positive opinion on AMD’s 2025 growth potential but maintained a Neutral rating. He highlighted AMD’s expanding presence in data centers, enterprise, and client computing, expecting over 20% revenue growth, driven by server CPU gains, AI GPU growth, and improving market trends.
Hedge Fund Resource Center