10 Best Semiconductor Stocks to Buy Heading into 2026

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In this article, we will discuss the 10 Best Semiconductor Stocks to Buy Heading into 2026

The Semiconductor Industry Association (SIA) announced that global semiconductor sales came in at $208.4 billion during Q3 2025, reflecting a rise of 15.8% compared to Q2 2025. Global sales amounted to $69.5 billion in September 2025, implying 25.1% YoY growth and 7.0% growth from August 2025. The market growth stemmed from higher demand across a range of semiconductor products, including memory and logic. Notably, YTD growth was aided by sales into the Asia Pacific region and the Americas.

Trends in the Semiconductor Industry

Ken Research (a global consulting firm), while quoting World Semiconductor Trade Statistics, highlighted that the global semiconductor market was valued at USD 627 billion in 2024. From smartphones to satellites, the firm believes that the semiconductors underpin over 20% of global manufacturing output.

With the governments tightening export rules and subsidizing the domestic fabrication, the trade of chips transitioned from a supply-chain function to a national security instrument.

Amidst such trends, we will now have a look at the 10 Best Semiconductor Stocks to Buy Heading into 2026.

10 Best Semiconductor Stocks to Buy Heading into 2026

Our Methodology

To list the 10 Best Semiconductor Stocks to Buy Heading into 2026, we used a screener to shortlist stocks catering to the broader semiconductor space and in which analysts see at least 20% upside to. Next, we chose the ones popular among hedge funds, as of Q3 2025. Finally, the stocks are arranged in ascending order of their average upside potential.

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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).

Note: All the data is as of November 25

10 Best Semiconductor Stocks to Buy Heading into 2026

10. Qnity Electronics, Inc. (NYSE:Q)

Number of Hedge Fund Holders: N/A

Average Upside Potential: ~38.8%

Qnity Electronics, Inc. (NYSE:Q) is one of the best Semiconductor Stocks to Buy Heading into 2026. On November 25, RBC Capital reduced the price target on the company’s stock to $110 from $120 while keeping an “Outperform” rating, as reported by The Fly. As per the analyst, recent weakness in the stock can be because of uncertainty in semiconductor growth outlook, and concerns related to the AI bubble. Qnity Electronics, Inc. (NYSE:Q)’s stock witnessed a decline of over ~16% in the recent past.

In Q3 2025, Qnity Electronics, Inc. (NYSE:Q)’s net sales came in at $1.3 billion, reflecting a rise of 11% from the prior-year period. This growth stemmed from higher AI demand throughout advanced nodes, advanced packaging, and thermal management solutions. Its net income came in at $223 million in Q3 2025 compared to $207 million in Q3 2024, amidst higher revenues.

Qnity Electronics, Inc. (NYSE:Q)’s CEO highlighted that it delivered 6 consecutive quarters of robust organic growth, demonstrating the breadth of its portfolio and the power of its innovation partnerships with customers.

Qnity Electronics, Inc. (NYSE:Q) is engaged in providing materials and solutions to the semiconductor and electronics industries.

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