In this article, we will discuss the 10 Best Semiconductor Stocks to Buy Under $20.
According to Capgemini’s research on semiconductor market trends, companies continue to expect demand for semiconductors to rise by 15% by 2026. Furthermore, the downstream organizations – ones dependent on semiconductors for their products or services – project demand to rise by 29%.
Increased Investments in Semiconductor Space
The Semiconductor Industry Association (SIA) highlighted that after over 30 years of decline in the US share of global chip manufacturing capacity, the broader semiconductor industry has been re-industrializing America through robust domestic investments. The chip manufacturing incentives, initiated in 2020 during President Trump’s first term, have been ramping up efforts and providing results.
SIA highlighted that, as of July 2025, companies operating in the semiconductor ecosystem announced over half a trillion dollars in private-sector investments focused on revamping the US chip ecosystem, setting the momentum for the expected tripling of the US chipmaking capacity by 2032.
Amidst such trends, we will now have a look at the 10 Best Semiconductor Stocks to Buy Under $20.
A robotic arm holding a semiconductor chip, emphasizing the precision and quality of the company’s production equipment.
Our Methodology
To list the 10 Best Semiconductor Stocks to Buy Under $20, we used a screener to shortlist the stocks catering to the broader semiconductor industry. Next, we narrowed our list to the ones that trade below $20. Finally, we selected the ones popular among hedge funds. We also mentioned the hedge fund sentiments around each stock, 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).
Note: All data is as of August 1
10 Best Semiconductor Stocks to Buy Under $20
10. ChipMOS TECHNOLOGIES INC. (NASDAQ:IMOS)
Share Price: $16.87
Number of Hedge Fund Holders: 2
ChipMOS TECHNOLOGIES INC. (NASDAQ:IMOS) is one of the Best Semiconductor Stocks to Buy Under $20. On July 10, the company reported its unaudited consolidated revenue for June 2025 and for the second quarter ended June 30, 2025. ChipMOS TECHNOLOGIES INC. (NASDAQ:IMOS) saw revenues of NT$5,735.8 million or US$196.6 million for Q2 2025, demonstrating an increase of 3.7% from Q1 2025, and a fall of 1.3% from Q2 2024.
ChipMOS TECHNOLOGIES INC. (NASDAQ:IMOS) highlighted that it continues to benefit from higher customer demand and overall market price increases for memory products. It posted revenues of NT$1,849.7 million or US$63.4 million for June 2025, reflecting a fall of 8.7% from May 2025. As per the Chairman, the company is in the right long-term end markets with a leadership position to build on. Furthermore, there are expectations that this will benefit the business in up markets and help in reducing the impact of slowdowns in softer markets. Furthermore, ChipMOS TECHNOLOGIES INC. (NASDAQ:IMOS)’s location remains strategically important in the supply chain to its customers, and this might continue to provide an advantage over the long term.
ChipMOS TECHNOLOGIES INC. (NASDAQ:IMOS) is an industry-leading provider of outsourced semiconductor assembly and test services.
9. Aehr Test Systems, Inc. (NASDAQ:AEHR)
Share Price: $16.84
Number of Hedge Fund Holders: 6
Aehr Test Systems, Inc. (NASDAQ:AEHR) is one of the Best Semiconductor Stocks to Buy Under $20. On July 22, the company announced that it received follow-on orders from its lead production AI processor customer for package part burn-in for 8 Sonoma ultra-high-power systems to be utilized for volume production test and burn-in of their AI processors. Such systems are expected to be shipped from Aehr Test Systems, Inc. (NASDAQ:AEHR)’s high-volume production facility in Fremont, California, over the upcoming 6 months.
Aehr Test Systems, Inc. (NASDAQ:AEHR) has tagged this company as “one of the premier large-scale data center hyperscalers.” The company opines that its Sonoma systems provide the lowest-cost solution on the market. The types of processors and applications for AI continue to evolve rapidly, moving beyond general-purpose GPU-based processors for large language models and inference to ASICs designed for specialized accelerator functions in data centers and hyperscalers.
Aehr Test Systems, Inc. (NASDAQ:AEHR) also highlighted that AI processors are becoming important in autonomous vehicles, robotics, and security applications. With the company’s comprehensive portfolio of reliability test and burn-in solutions tailored for AI semiconductors, there are expectations that Aehr Test Systems, Inc. (NASDAQ:AEHR) remains well-placed to capture a meaningful share of the growing market.
Aehr Test Systems, Inc. (NASDAQ:AEHR) offers test solutions for testing, burning-in, and semiconductor devices in wafer-level, singulated die, package part form, and installed systems.
8. Navitas Semiconductor Corporation (NASDAQ:NVTS)
Share Price: $7.96
Number of Hedge Fund Holders: 11
Navitas Semiconductor Corporation (NASDAQ:NVTS) is one of the Best Semiconductor Stocks to Buy Under $20. On July 31, the company announced that Xiaomi’s next-generation 90W GaN charger will be powered by Navitas Semiconductor Corporation (NASDAQ:NVTS)’s GaNSense Control ICs. The charger integrates Navitas Semiconductor Corporation (NASDAQ:NVTS)’s NV9580 GaNSense Control power IC on the primary side and NV9701 synchronous rectification controller IC on the secondary side.
As per Charles Zha, SVP and APAC GM of the company, the launch of Xiaomi’s 90W GaN charger happens to be a new milestone in its collaboration with Xiaomi. By combining the innovation of GaNSense Control ICs and Xiaomi’s leading system expertise, Navitas Semiconductor Corporation (NASDAQ:NVTS) delivered a new benchmark for the ultra-portable fast-chargers.
The company announced the world’s first production-released 650 V bi-directional GaN ICs and IsoFast™ high-speed isolated gate-drivers, resulting in a paradigm shift in power by allowing the transition from two-stage to single-stage topologies. Navitas Semiconductor Corporation (NASDAQ:NVTS) also announced a 12 kW AI data center power supply platform and unprecedented reliability standards for GaN and SiC technology. These achievements, along with its $450 million of design wins announced last year, place it for growth later this year and in 2026 and beyond.
7. Himax Technologies, Inc. (NASDAQ:HIMX)
Share Price: $8.65
Number of Hedge Fund Holders: 14
Himax Technologies, Inc. (NASDAQ:HIMX) is one of the Best Semiconductor Stocks to Buy Under $20. On July 14, Himax Technologies, Inc. (NASDAQ:HIMX) and Rabboni Co., Ltd. jointly announced the unveiling of bboni Ai, which is the world’s first multi-scenario endpoint AI sensing system. Notably, bboni Ai tends to integrate Rabboni’s high-precision IMU (Inertial Measurement Unit) motion sensors with Himax Technologies, Inc. (NASDAQ:HIMX)’s ultralow-power WiseEye2 AI processor. This opens a new chapter for real-time endpoint AI inference for wearable devices and ramps up the transition of AI from concept to real-world implementation.
The tariffs have not had a significant direct impact on the company’s business, as its IC products are not directly exported to the US. Amidst the volatile macro environment, most of the panel customers adopted a make-to-order model and have decided to keep inventories lean. Therefore, Himax Technologies, Inc. (NASDAQ:HIMX) continues to carefully monitor wafer-starts, maintains low inventory levels, and remains focused on controlling operating expenses. Despite the near-term challenges, Himax Technologies, Inc. (NASDAQ:HIMX) leads the global automotive display market, accounting for a 40% share in DDIC, more than 50% in TDDI, and an even higher share in cutting-edge local dimming Tcon technologies.
Himax Technologies, Inc. (NASDAQ:HIMX) is a fabless semiconductor company that offers display imaging processing technologies.
6. Cohu, Inc. (NASDAQ:COHU)
Share Price: $19.13
Number of Hedge Fund Holders: 17
Cohu, Inc. (NASDAQ:COHU) is one of the Best Semiconductor Stocks to Buy Under $20. On July 31, the company released its results for Q2 2025, wherein the test cell utilization was up a few points throughout all Cohu segments, and it secured a $28 million design-win order from a customer serving mobile and automotive end markets. For Q3 2025, Cohu, Inc. (NASDAQ:COHU) expects sales of $125 million (+/- $7 million). The company’s estimated test cell utilization rose by 3 points Q-o-Q to 75%, demonstrating that the industry has been entering a recovery cycle. Orders saw an improvement Q-o-Q, mainly due to the mobile end market.
Cohu, Inc. (NASDAQ:COHU) also secured its first system order from a customer in India for silicon carbide test. This resulted in the opening of new geographical opportunity for its products. Recurring revenue, which is largely consumable-driven and more stable compared to systems revenue, accounted for 63% of total revenue in Q2 2025. Cohu, Inc. (NASDAQ:COHU) highlighted that the gross margin for Q3 2025 is expected to be ~44%. The Q3 2025 revenue mix is projected to consist of ~47% from systems, primarily test automation systems for the mobile market, and ~53% from recurring revenue.
5. ASE Technology Holding Co., Ltd. (NYSE:ASX)
Share Price: $10.01
Number of Hedge Fund Holders: 18
ASE Technology Holding Co., Ltd. (NYSE:ASX) is one of the Best Semiconductor Stocks to Buy Under $20. On July 31, the company released its Q2 2025 results, with unaudited net revenues coming at NT$150,750 million for Q2 2025, up by 7.5% YoY and 1.8% sequentially. For H1 2025, its consolidated revenues went up by 9% YoY, with ATM revenues rising 18% YoY. Leading-edge advanced packaging and overall testing surpassed growth, with the general segment seeing some recovery. For its ATM business, ASE Technology Holding Co., Ltd. (NYSE:ASX) expects momentum to carry into Q3 2025, with quarter-to-quarter growth in Q4 2025.
Furthermore, ASE Technology Holding Co., Ltd. (NYSE:ASX) expects the uptrend in revenues to continue into 2026 and beyond, aided by leading-edge solutions and broad-based semiconductor demand associated with AI proliferation and general recovery. ASE Technology Holding Co., Ltd. (NYSE:ASX)’s testing business grew 31% YoY in H1 2025. The momentum is expected to continue into H2 2025 as a result of increased turnkey and expanding leading-edge test. In USD terms, the company expects its consolidated Q3 2025 revenues to grow by 12% – 14% QoQ.
ASE Technology Holding Co., Ltd. (NYSE:ASX) offers semiconductor manufacturing services in assembly and testing.
4. United Microelectronics Corporation (NYSE:UMC)
Share Price: $6.81
Number of Hedge Fund Holders: 18
United Microelectronics Corporation (NYSE:UMC) is one of the Best Semiconductor Stocks to Buy Under $20. On July 30, the company released its Q2 2025 results, with the utilization rate rising to 76% as wafer shipments rose 6.2% QoQ. This was mainly because of communications in imaging signal processors, NAND controllers, WiFi, and LCD controllers. Revenue from United Microelectronics Corporation (NYSE:UMC)’s 22/28nm portfolio grew sequentially, now making up for 40% of the total sales.
United Microelectronics Corporation (NYSE:UMC)’s industry-leading 22/28nm solutions have been winning adoption by customers, and it expects to see further market share gains in wireless communications over the upcoming quarters. With the right differentiation, 22/28nm happens to be a strong and long-lasting node with a strong product pipeline. Furthermore, the new Phase 3 facility at the company’s Singapore Fab 12i, set to begin production in 2026, is expected to allow United Microelectronics Corporation (NYSE:UMC) to better serve customers who look for diversified manufacturing for enhanced supply chain resilience.
For Q3 2025, United Microelectronics Corporation (NYSE:UMC) expects its wafer shipment to increase by a low single-digit percentage, and its capacity utilization rate will be in the mid-70% range.
United Microelectronics Corporation (NYSE:UMC) operates as a semiconductor wafer foundry.
3. MaxLinear, Inc. (NASDAQ:MXL)
Share Price: $15.21
Number of Hedge Fund Holders: 26
MaxLinear, Inc. (NASDAQ:MXL) is one of the Best Semiconductor Stocks to Buy Under $20. On July 24, Susquehanna lifted the price objective on the company’s stock to $18 from $15, while keeping a “Neutral” rating, as reported by The Fly. The firm updated its model after strong Q2 2025 results and even stronger guidance as the company benefits from strength throughout its strategic growth markets (mainly high-speed optical interconnects), and a continued recovery in the core business.
MaxLinear, Inc. (NASDAQ:MXL)’s Q2 2025 results demonstrated healthy sequential and YoY growth in the business. Amidst strong execution, the company surpassed the midpoint of its revenue guidance, returned to profitability on a non-GAAP basis, and saw positive FCF in Q2 2025. On a GAAP basis, MaxLinear, Inc. (NASDAQ:MXL) saw net revenue of $108.8 million, up 13% sequentially and 18% YoY.
MaxLinear, Inc. (NASDAQ:MXL) drove robust customer and product traction in high-speed interconnects for the data center, multi-gigabit PON access, Ethernet, Wi-Fi connectivity, and wireless infrastructure. The success in such strategic end markets, along with an improvement in customer order rates and strengthening product backlog, provides confidence for growth in 2025 and 2026.
MaxLinear, Inc. (NASDAQ:MXL) is a fabless semiconductor company, engaged in designing and selling integrated circuits for broadband, connectivity, and data center applications.
2. Vishay Intertechnology, Inc. (NYSE:VSH)
Share Price: $15.98
Number of Hedge Fund Holders: 29
Vishay Intertechnology, Inc. (NYSE:VSH) is one of the Best Semiconductor Stocks to Buy Under $20. On July 30, the company introduced a new series of uni/bidirectional 1500 W surface-mount PAR® transient voltage suppressors (TVS) in the SMB (DO-214AA) package. In a bid to cater to the demands of automotive applications, the Vishay General Semiconductor T15BxxA and T15BxxCA series are AEC-Q101 qualified and provide high temperature operation to +185 °C. In comparison to TVS in the SMC (DO-214AB) package, the Automotive Grade devices, which have been released, offer a 58% smaller footprint to save board space and lower system costs.
Vishay Intertechnology, Inc. (NYSE:VSH) executed well during Q1 2025 on its strategic levers to fuel faster revenue growth and improve profitability. The company remains well-placed to navigate the evolving tariff policies and any sort of demand uncertainties. Irrespective of the direction global trade actions take, Vishay Intertechnology, Inc. (NYSE:VSH)’s global manufacturing footprint provides it with flexibility to assure customers of a reliable supply if they decide to shift orders based on country of origin and tariff impact.
With the ongoing execution of strategic levers, Vishay 3.0 remains in a better position to participate in a market upturn and to exploit demand momentum in AI and smart grid infrastructure. Under Vishay 3.0, the company is in close contact with its customers, focusing on minimizing the impacts of macroeconomic uncertainties. Investment management company First Pacific Advisors recently released its Q1 2025 investor letter. Here is what the fund said:
“Vishay Intertechnology, Inc. (NYSE:VSH) makes passive electronic components and discrete semiconductors (resistors, inductors, capacitors, MOSFETs, diodes, etc). Although the industry is cyclical, competitive dynamics are stable and VSH benefits from incremental growth from electric vehicles and industrial electrification. The industry is currently struggling from a cyclical downturn following the excesses and component hoarding of the Covid era. Additionally, at its April 2024 Investor Day, Vishay announced very aggressive 2028 investment and profitability targets with a plan to strategically change the company’s culture that was notably staid and overly-conservative. We are cautiously optimistic about Vishay’s growth plans and have been adding to the position during this cyclical weakness.”
Vishay Intertechnology, Inc. (NYSE:VSH) is engaged in manufacturing and selling discrete semiconductors and passive electronic components.
1. Intel Corporation (NASDAQ:INTC)
Share Price: $19.31
Number of Hedge Fund Holders: 91
Intel Corporation (NASDAQ:INTC) is one of the Best Semiconductor Stocks to Buy Under $20. On July 25, Reuters reported that the company plans to separate its networking and communications unit into a stand-alone company and has initiated the process of identifying investors, with the new CEO focusing on streamlining its operations. The Chief Executive’s plan emphasises shedding non-core assets and decreasing expenses by scaling back significant investments and reducing the workforce numbers. Elsewhere, Bloomberg reported that Ericsson AB is in talks to invest millions of dollars in Intel Corporation (NASDAQ:INTC)’s networking infrastructure business.
This investment will result in Ericsson being a minority stakeholder in the newly spun-off networking and edge business, known as NEX, which has supplied chips to Ericsson for the radio access network hardware, reported Bloomberg. Intel Corporation (NASDAQ:INTC) is focused on strengthening its core product portfolio and the AI roadmap. Overall, the company sees opportunities to enhance its competitive position and improve profitability.
Intel Corporation (NASDAQ:INTC) has been making progress to simplify business, improve efficiency, and enhance execution. Such efforts are focused on reducing expenses, strengthening the balance sheet, optimizing the global footprint, along with concentrating resources on very important growth areas. Intel Corporation (NASDAQ:INTC) remains on track to achieve $17 billion non-GAAP operating expense target for FY 2025.
While we acknowledge the potential of INTC 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 INTC and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
