In this article, we will discuss the 10 Best Semiconductor Stocks to Buy According to Reddit.
The Semiconductor Industry Association (SIA) announced that global semiconductor sales amounted to $59.0 billion during May 2025, reflecting a rise of 19.8% as compared to the May 2024 total of $49.2 billion. As per John Neuffer, SIA president and CEO, the global semiconductor sales were robust in May, edging above the total of the previous month and remaining ahead of sales from the same month of the prior year.
Key Trends in the Broader Semiconductor Market
As per McKinsey, the profitability and growth dynamics in the broader semiconductor industry transitioned significantly over the recent years. The industry has witnessed an impressive economic profit growth, increasing from $38 billion in the 2000–09 period to $450 billion in 2010–19. Globally, semiconductor companies plan to invest ~$1 trillion through 2030 in new fabrication plants, and the global annual revenue of the industry can reach over $1 trillion by 2030, highlighted McKinsey. This doesn’t include significant revenue potential from the adoption of GenAI, according to even modest upside scenarios.
Beyond satisfying market demand, McKinsey believes that such investments can also help regions in increasing the supply resilience throughout the semiconductor value chain.
Amidst such trends, we will now have a look at the 10 Best Semiconductor Stocks to Buy According to Reddit.
A technician in a pristine lab, focused on designing a new semiconductor chip.
Our Methodology
To list the 10 Best Semiconductor Stocks to Buy According to Reddit, we sifted through the trending stocks on Reddit and then shortlisted the ones catering to the broader semiconductor market. Next, we chose the ones popular among hedge funds. Finally, the stocks were ranked in ascending order of their hedge fund sentiment, as of Q1 2025.
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 Reddit
10. POET Technologies Inc. (NASDAQ:POET)
Number of Hedge Fund Holders: 2
POET Technologies Inc. (NASDAQ:POET) is one of the 10 Best Semiconductor Stocks to Buy According to Reddit. The company announced its intention to complete a non-brokered public offering of 5,000,000 units at US$5.00 per unit for aggregate gross proceeds of US$25 million. The company expects to use the net proceeds of the offering for working capital and general corporate purposes.
POET Technologies Inc. (NASDAQ:POET) witnessed robust interest from institutional, strategic, and public market investors over the previous 15 months. This is mainly because of a compelling value proposition, combining critical technical and commercial achievements with a significant market opportunity, rewarding innovative hardware solutions in AI networks and systems.
In Q1 2025, POET Technologies Inc. (NASDAQ:POET) continued to build momentum throughout several fronts, such as technology innovation, strategic partnerships, commercial progress, and production capacity, positioning it for accelerated revenue growth in H2 2025. In Q1 2025, the company shipped final design samples of its POET Infinity transmit product line for 400G and 800G applications to 3 technology leaders. Such products include 400G FR4, 800G 2xFR4, and 800G DR8 transmit formats.
POET Technologies Inc. (NASDAQ:POET) is engaged in designing, developing, manufacturing, and selling semiconductor products and services for commercial applications.
9. ON Semiconductor Corporation (NASDAQ:ON)
Number of Hedge Fund Holders: 44
ON Semiconductor Corporation (NASDAQ:ON) is one of the 10 Best Semiconductor Stocks to Buy According to Reddit. Goldman Sachs analyst James Schneider initiated coverage of the company’s stock with a “Neutral” rating and a price objective of $60, as reported by The Fly. The firm initiated the US analog and radio frequency semiconductor sector and has a bullish view due to the cyclical opportunities it expects.
As per the firm, ON Semiconductor Corporation (NASDAQ:ON) remains well-placed to benefit from a cyclical recovery because of its prudent channel management and restructuring/cost initiatives. The analyst highlighted that the broader analog industry is expected to move towards trendline shipments over the next 12-18 months, with the firm being optimistic about companies that are shipping furthest below trend and those who have managed supply chains well. ON Semiconductor Corporation (NASDAQ:ON)’s Q1 2025 results exhibit the disciplined approach it has maintained, such as management of cost structure, right-sizing of manufacturing footprint, and rationalization of portfolio. Furthermore, ON Semiconductor Corporation (NASDAQ:ON) continues to see robust design win momentum, thanks to the industry-leading performance of its products.
Columbia Threadneedle Investments, an investment management company, released its Q1 2025 investor letter. Here is what the fund said:
“The fund maintained overweight positions relative to the benchmark in semiconductor companies Broadcom, ON Semiconductor Corporation (NASDAQ:ON) and Marvell Technology, all of which detracted from performance relative to the fund’s benchmark. ON Semiconductor’s production has historically been tied to the automotive sector, and the forecast for car and truck sales remained uncertain, given the likelihood of price increases on newly manufactured vehicles due to recent U.S. tariff announcements. If the new administration maintains its stance on large-scale reciprocal tariffs around the globe, the automotive market is likely to see large price increases that get passed along to consumers.”
8. Marvell Technology, Inc. (NASDAQ:MRVL)
Number of Hedge Fund Holders: 73
Marvell Technology, Inc. (NASDAQ:MRVL) is one of the 10 Best Semiconductor Stocks to Buy According to Reddit. Morningstar gives the company a narrow economic moat rating. As per the firm, Marvell Technology, Inc. (NASDAQ:MRVL) has intangible assets in networking chip design, allowing it to compete at the cutting edge and shield its competitive position. Furthermore, the company tends to benefit from switching costs. Morningstar anticipates the company to earn excess returns on invested capital, more likely than not, over the upcoming 10 years.
Marvell Technology, Inc. (NASDAQ:MRVL)’s billions of dollars of cumulative R&D over the previous decade have developed a portfolio of differentiated intellectual property. Through this, the company can build custom and semi-custom designs for myriad applications and customers, added the firm. It expects the data center to remain Marvell Technology, Inc. (NASDAQ:MRVL)’s largest end market. The company’s AI chip sales have been driving impressive growth, and Morningstar maintains its long-term confidence in the rapid and growth runway for its AI portfolio.
ClearBridge Investments, an investment management company, released its Q2 2025 investor letter. Here is what the fund said:
“We also added a starter position in Marvell Technology, Inc. (NASDAQ:MRVL) in June. Marvell is a company we have been tracking through our ownership of Nvidia and work on the AI semiconductor complex over the last several years. Similar to Broadcom, Marvell designs chips and networking equipment that power technologies like AI, cloud computing and 5G infrastructure and has a particularly strong interconnect business. While Marvell has a high-quality asset portfolio to compete in the custom application-specific integrated circuits (ASICs) chip business, the stock has lagged AI accelerator peers like Nvidia and Broadcom as its ramp in AI revenue has been slower than others in the ecosystem. We believe this dynamic can reverse in coming years as more of Marvell’s customer wins ramp up. Marvell’s valuation has compressed significantly over the past six to nine months and the stock now trades at a healthy growth-adjusted discount to AI semi peers, providing an attractive entry point.”
7. ASML Holding N.V. (NASDAQ:ASML)
Number of Hedge Fund Holders: 80
ASML Holding N.V. (NASDAQ:ASML) is one of the 10 Best Semiconductor Stocks to Buy According to Reddit. Morningstar believes that the company will remain the top lithography equipment provider in semiconductor foundries for a minimum of the next 2 decades. The other companies have redesigned their fabs a decade ago in order to make them suitable for extreme ultraviolet, or EUV, lithography, which happens to be a costly and long endeavor. Therefore, Morningstar opines that ASML Holding N.V. (NASDAQ:ASML) is not likely to be displaced from its place.
Furthermore, no competitor has been able to match ASML Holding N.V. (NASDAQ:ASML)’s technological leadership. Its competitive advantage is expected to continue to expand further, added the firm. ASML Holding N.V. (NASDAQ:ASML)’s leading market position further strengthens its key role in the broader global semiconductor supply chain. Its EUV technology, critical for producing advanced logic and memory chips, has supported it in being regarded as an indispensable partner for the semiconductor manufacturers.
In Q1 2025, ASML Holding N.V. (NASDAQ:ASML) saw total net sales of €7.7 billion, gross margin of 54.0%, and net income of €2.4 billion, with quarterly net bookings coming at €3.9 billion, of which €1.2 billion is EUV. Parnassus Investments, an investment management company, released its Q1 2025 investor letter. Here is what the fund said:
“In Information Technology, we moved from an underweight to an overweight as we added new positions in Synopsys, ASML Holding N.V. (NASDAQ:ASML) and AppFolio while selling Adobe and Procore Technologies. ASML is a leading supplier of photolithography systems, equipment crucial for producing advanced microchips. It has a wide moat built on technology innovation, high market share and strong customer and supplier relationships.”
6. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 91
Intel Corporation (NASDAQ:INTC) is one of the 10 Best Semiconductor Stocks to Buy According to Reddit. In Q1 2025, the company’s revenue came in at $12.7 billion, flat on a YoY basis. Intel Corporation (NASDAQ:INTC) remains focused on taking a disciplined and prudent approach to support continued investment in its core products and foundry businesses while, at the same time, maximizing operational cost savings as well as capital efficiency. The company has reduced its non-GAAP operating expense target to ~$17 billion in 2025, down from the prior goal of $17.5 billion. In FY 2026, Intel Corporation (NASDAQ:INTC) is targeting $16 billion. Notably, operating expenses consist of research and development (R&D), and marketing, general and administrative (MG&A).
Furthermore, the operational efficiencies and better utilization of construction-in-progress assets enable Intel Corporation (NASDAQ:INTC) to reduce the gross capital expenditures target to $18 billion for 2025, down from its previous target of $20 billion. However, the company still expects net capital expenditures of ~$8 billion – $11 billion. Intel Corporation (NASDAQ:INTC) remains focused on investment in its core business as it fuels operational efficiency. Notably, the company’s push into the foundry business demonstrates a strong opportunity to diversify the revenue streams as well as capitalize on the elevated demand levels for semiconductor manufacturing capacity.
5. Micron Technology, Inc. (NASDAQ:MU)
Number of Hedge Fund Holders: 96
Micron Technology, Inc. (NASDAQ:MU) is one of the 10 Best Semiconductor Stocks to Buy According to Reddit. Deutsche Bank initiated coverage of the company’s stock with a “Buy” rating and a price objective of $150. The analysts remain optimistic on the cyclical and secular backdrop for Micron Technology, Inc. (NASDAQ:MU), driven mainly by increased demand for High Bandwidth Memory (HBM). Deutsche Bank opines that HBM remains an underrated driver of Gen/Gen AI processor performance improvements and expects that growth in HBM bits and ASPs can fuel DRAM revenue growth as well as profitability above historical levels.
On the traditional DRAM side, the bank’s analysts expect continued strength aided by increased content per device and improvement in supply-demand dynamics. Micron Technology, Inc. (NASDAQ:MU) delivered record revenue in Q3 2025, thanks to the all-time-high DRAM revenue, including ~50% sequential growth in HBM revenue. Furthermore, the data center revenue more than doubled YoY in Q3 2025 and touched a quarterly record. Moving forward, Micron Technology, Inc. (NASDAQ:MU) expects to deliver revenue (GAAP) of $10.7 billion (± $300 million), and gross margin of 41.0% (± 1.0%) in Q4 2025.
4. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 97
Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the 10 Best Semiconductor Stocks to Buy According to Reddit. The company’s stock was upgraded to a “Buy” rating from “Hold” by HSBC analyst Frank Lee with a street-high price target of $200. The analyst is now increasingly optimistic about Advanced Micro Devices, Inc. (NASDAQ:AMD)’s long-term growth potential and improved market performance in the GPU (Graphics Processing Unit) and CPU (Central Processing Unit) markets. Furthermore, the analyst noted stronger-than-expected pricing power in the company’s AI GPU lineup and increasing confidence in its data center roadmap.
Advanced Micro Devices, Inc. (NASDAQ:AMD) and HUMAIN, Saudi Arabia’s new AI enterprise, announced the landmark agreement to build the world’s most open, scalable, resilient, and cost-efficient AI infrastructure. This is expected to power future of global intelligence via a network of AMD-based AI computing centers stretching from the Kingdom of Saudi Arabia to the US. According to the agreement, the parties are expected to invest up to $10 billion to deploy 500 megawatts of AI compute capacity over the upcoming 5 years.
Longriver Investment Partners released its “Longriver Partners Fund” Q2 2025 investor letter. Here is what the fund said:
“Nvidia’s NVLink, its high-bandwidth interconnect, underpins training at scale, where GPUs must coordinate across racks. NVLink Fusion, announced this year, may extend that advantage by letting custom chips plug into Nvidia’s system rather than replace it. However, many inference tasks can be handled independently, one GPU at a time. That lowers the importance of networking, and with it, Nvidia’s edge in tightly integrated systems.
This has given Advanced Micro Devices, Inc. (NASDAQ:AMD) a window to become more than a second source. Its MI300X is now deployed at Microsoft, Meta, Oracle, and Dell. In some inference workloads, it beats Nvidia’s H100. As one expert put it, “ROCm used to be a science project. Now we’re finally seeing it run real workloads.” AMD plans to ship full-rack MI400 systems next year. It still trails in training, but inference gives it a real wedge into the market.
AMD is also leaning into openness. ROCm is open source, its interconnects run over Ethernet, not proprietary links, and it is sticking with x86 CPUs. That may appeal to buyers wary of lock-in or reluctant to cross-compile for ARM.”
3. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 158
Broadcom Inc. (NASDAQ:AVGO) is one of the 10 Best Semiconductor Stocks to Buy According to Reddit. Mizuho analyst Vijay Rakesh raised the price target on the company’s stock to $315 from $310, while keeping an “Outperform” rating. The firm increased estimates and price targets for several names in the broader semiconductors and semiconductor capital equipment group. The firm took a look at the data center and AI server market after the re-rating post the Liberation Day selloff. Overall, the firm expects Broadcom Inc. (NASDAQ:AVGO) to achieve industry-leading FY 2026 gross margins and operating margins, with potential FCF growth.
In Q2 2025, Broadcom Inc. (NASDAQ:AVGO) achieved record revenue due to continued momentum in AI semiconductor solutions and VMware. Its Q2 2025 AI revenue saw an increase of 46% YoY to more than $4.4 billion, thanks to the strong demand for AI networking. Broadcom Inc. (NASDAQ:AVGO) expects growth in AI semiconductor revenue to accelerate to $5.1 billion in Q3 2025, delivering 10 consecutive quarters of growth, with the company’s hyperscale partners continuing to invest. In Q2 2025, the company saw a record FCF of $6.4 billion, up 44% YoY.
ClearBridge Investments, an investment management company, released its Q2 2025 investor letter. Here is what the fund said:
“Adding Broadcom Inc. (NASDAQ:AVGO), a leader in semiconductor design for communications and networking devices, enables the Strategy to better participate in the development of custom silicon chips for AI computing. Broadcom is well-positioned for continued healthy investment in AI, working with several large technology companies to develop custom silicon that we expect to grow alongside robust demand for Nvidia’s all-purpose GPUs. The company’s cloud infrastructure software business should also continue to grow for the next several years given its entrenched position within enterprises.”
2. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders: 187
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the 10 Best Semiconductor Stocks to Buy According to Reddit. The company announced its net revenue for June 2025. On a consolidated basis, revenue for June 2025 was ~NT$263.71 billion, reflecting a decline of 17.7% from May 2025, and a rise of 26.9% from June 2024. Furthermore, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)’s revenue for January through June 2025 came in at NT$1,773.05 billion, a rise of 40.0% compared to the same period in 2024.
Revenue for April-June stood at T$933.8 billion ($31.9 billion), as per Reuters calculations, increasing 38.6% from T$673.51 billion in the year-ago period. The demand for Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)’s products continued to leap on increased interest in AI applications, added Reuters. The company’s consolidated revenue came in at NT$839.25 billion, net income at NT$361.56 billion, and diluted EPS at NT$13.94 (US$2.12 per ADR unit) for Q1 2025.
While Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)’s business was impacted by smartphone seasonality in Q1 2025, this was offset by continued growth in AI-related demand. Longriver Investment Partners released its Q2 2025 investor letter. Here is what the fund said:
“Underpinning all of this is one constant. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) remains the lynchpin of the AI compute stack. Every major chip, whether merchant or custom, still runs through its fabs. No other foundry comes close on yield, throughput, or consistency.
If anything, TSMC’s importance has deepened further, thanks to its own initiative and its competitors’ fumbles. In mid-2024, it unveiled its “Foundry 2.0” strategy, redefining its role beyond traditional manufacturing to include advanced packaging, testing, mask-making, and other services vital to progressing Moore’s Law as transistor density gains slow. By integrating all these aspects of chip design, TSMC can deliver better results for its customers and tie them in even closer. One expert summed it up: “TSMC’s system-level co-design is unparalleled.”
Nowhere was that shift more visible than in 2024, when TSMC’s 2.5D CoWoS packaging became a chokepoint. Nvidia’s Blackwell hit thermal limits not because of bad silicon, but because packaging couldn’t keep up. TSMC is doubling CoWoS capacity, but the episode showed how sensitive the stack has become and how much everything now depends on packaging. But packaging is not the only place TSMC is innovating. It is also pushing the limits of the chip itself…” (Click here to read the full text)
1. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 212
NVIDIA Corporation (NASDAQ:NVDA) is one of the 10 Best Semiconductor Stocks to Buy According to Reddit. NVIDIA Corporation (NASDAQ:NVDA) announced a collaboration with Novo Nordisk to ramp up the drug discovery efforts via innovative AI use cases. The work supports Novo Nordisk’s agreement with DCAI to utilise the Gefion sovereign AI supercomputer. The companies are focusing on creating customized AI models and agents that Novo Nordisk can utilise for early research and clinical development, as well as to apply advanced simulation and physical AI technologies. DCAI’s Gefion supercomputer, which is powered by NVIDIA DGX SuperPOD™, offers Novo Nordisk an AI factory for running drug discovery and agentic AI workloads.
Elsewhere, Morningstar believes that NVIDIA Corporation (NASDAQ:NVDA)’s DC business has achieved exponential growth, increasing from $3 billion in fiscal 2020 to $115 billion in fiscal 2025. The firm opines that DC revenue remains supply-constrained, with near-term revenue expected to rise as more supply comes online. The firm assigned NVIDIA Corporation (NASDAQ:NVDA) a wide economic moat, stemming from the intangible assets related to its graphics processing units and switching costs associated with its proprietary software, like its CUDA platform for AI tools, which tends to enable developers to utilise Nvidia’s GPUs to build AI models.
Longriver Investment Partners released its Q2 2025 investor letter. Here is what the fund said:
“This shift in capex priorities has reopened the debate over compute architectures. Custom silicon promises a way out of NVIDIA Corporation’s (NASDAQ:NVDA) pricing power, especially for inference. But the path is not straightforward.
For hyperscalers, the logic of custom silicon is clear. Nvidia’s pricing power is real and inference costs are spiralling. ASICs offer lower cost, better integration, power efficiency, and more control. But while this sounds ideal on paper, it is hard to deliver in the real world.
Custom chips work best when workloads are stable and scale is extreme. AI is neither. Models have evolved quickly, shifting, for example, from transformers to diffusion, and from instruction-tuned to multimodal. Fixed-function chips, by design, are not built to adapt. If the model shifts, their value evaporates. As one expert put it, “If you spend all this money building something and then you find out the workload changes underneath you, you’re basically stuck…” (Click here to read the full text)
NVIDIA Corporation (NASDAQ:NVDA) is engaged in designing and selling semiconductor chips, mainly GPUs, which are important hardware components utilised in computing.
While we acknowledge the potential of NVDA 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 NVDA and that has 100x upside potential, check out our report about this cheapest AI stock.
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