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10 Best Semiconductor Stocks With The Highest Upside Potential

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The semiconductor index (SOX) has been on a tear over the last couple of years. The SOX surged by a whopping 66.95% in 2023, followed by a solid 23.79% in 2024. In comparison, the broader S&P 500 index returned  24.73% and 24.01% in the same period. However, the semiconductor index has fallen by 7.71% year-to-date.

In an interview with CNBC, Glen Kacher, the founder and Chief Investment Officer of Lights Street Capital, underscored his bullishness on chip stocks despite the underperformance in 2025. Kacher remains very bullish on generative AI, which needs the processing power of chips. Kacher said that there is nothing in the tech pipeline as innovative as Gen AI.

Gen AI creates customized answers for the user based on real underlying data. Gen AI has created a massive investment cycle of over $200 billion a year, Kacher said. The ‘Magnificent 7’ companies have been leading capex spenders on Gen AI, and according to Kacher, they will continue to spend big on Gen AI, which is a huge plus for semiconductor companies. The big tech companies are competing intensely over supremacy in Gen AI. Light Street Capital has been shifting a lot of its funds into what Kacher calls the ‘AI 5’.

Semiconductor Valuations are Reasonable Now

According to Kacher, since the summer of 2024, the SOX index has been flat, while the S&P 500 index has returned 15% during the same period. Kacher pointed out that the semiconductor fundamentals have continued to improve in that period. He said, the PE ratio for the SOX index is down by 20% since July 2024, and now stands at 24.5.  Meanwhile, the PE ratio for the S&P 500 index is currently 22 and is up 9% in the same period, according to Kacher. Deloitte recently reported that the sales of the semiconductor industry grew 19% in 2024 to $627 billion and expects the sales to go up by over 11% in 2025. According to Deloitte, industry sales could easily surpass the $1 trillion mark by 2030.

According to Kacher investors are irrationally bearish on the semiconductor stocks. He said that the short exposure of hedge funds in the semiconductor stocks is at a five-year high. But given the steadily improving fundamentals and a reasonable valuation, semiconductor stocks could soon be market darlings again as many have a very high upside potential according to analysts.

Our Methodology

We have curated a list of ten semiconductor stocks that have the highest upside potential. For this, we used Finviz screener and set the industry as ‘semiconductor’. We also sorted by market cap and handpicked the stocks with the highest upside potential. Additionally, we have mentioned the hedge fund sentiment for each stock, as of Q4 2024.

Note: All data was recorded on March 19, 2025.

At Insider Monkey we are obsessed with 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 With the Highest Upside Potential

10. Broadcom Inc. (NASDAQ:AVGO)

Upside Potential: 29.32%

Market Capitalization: $919.56 Billion

Number of Hedge Fund Holders: 161

Broadcom Inc. (NASDAQ:AVGO) is a semiconductor giant. It designs, develops, and supplies a wide range of semiconductor and infrastructure software solutions. The company creates products that are used in a wide range of industries. Broadcom Inc.’s (NASDAQ:AVGO) custom ASICs are specialized semiconductor chips designed for specific tasks or applications, rather than general-purpose use, and are likely to be a key driver of the company’s growth. Custom ASICs help the company support the massive scale of data centers that power AI applications today.

Broadcom Inc. (NASDAQ:AVGO) saw solid growth in 2024, with revenue growing 44% year-over-year to $51.6 billion. The 2024 growth was driven by the VMware acquisition in November 2023 and advancements in AI. According to the company, its revenue from AI grew by a staggering 220% year-over-year to $12.2 billion in FY 2024, making up 41% of its revenue from semiconductors. Revenue from AI is likely to make up an increasing portion of the company’s revenue. Broadcom anticipates a substantial market opportunity in AI, projecting an AI-related revenue serviceable addressable market (SAM) of $60-90 billion by 2027. The semiconductor business, especially AI XPUs, is expected to outgrow the non-AI segment in the coming years, with strong growth in AI-driven components like networking chips.

9. Monolithic Power Systems Inc. (NASDAQ:MPWR)

Upside Potential: 32.40%

Market Capitalization: $30.15 Billion

Number of Hedge Fund Holders: 51

Monolithic Power Systems, Inc. (NASDAQ:MPWR) is a global company that makes energy-efficient power electronics using semiconductors. Its products are used in industries like storage, computing, automotive, and communications. Founded in 1997, this company stands out for its expertise in creating small, integrated solutions with advanced technology. With over 4,000 employees worldwide, it focuses on Asia, Europe, and the U.S. The company invests a lot in research and development to stay competitive in the semiconductor industry.

The company expects a flat growth for the enterprise data segment for the year, with growth heavily weighted toward the second half. This is likely to be driven by ramp-ups in hyperscalers, new product launches in AI, and increases in demand from existing customers in AI. Additionally, sectors like memory, optical, and networking are expected to contribute to growth in 2025. It is optimistic about its leadership in AI due to its innovation and first-mover advantage. However, the competitive environment in the AI accelerator space is increasing with other ASIC vendors. Monolithic Power Systems, Inc. (NASDAQ:MPWR)  is investing in new technologies. In 2024, the company introduced a silicon carbide inverter for high-powered clean energy applications. The company also plans to introduce other silicon carbide-based applications soon.

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The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
  • It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
  • It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

But that’s not all…

As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.

AI needs energy. Energy needs infrastructure.

And infrastructure needs a builder with experience, scale, and execution.

This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

While most energy and utility firms are buried under mountains of debt and coughing up hefty interest payments just to appease bondholders…

This company is completely debt-free.

In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap.

It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

And here’s what the smart money has started whispering…

The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

They’re sharing it quietly, away from the cameras, to rooms full of ultra-wealthy clients.

Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.

And that’s for a business tied to:

  • The AI infrastructure supercycle
  • The onshoring boom driven by Trump-era tariffs
  • A surge in U.S. LNG exports
  • And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

This isn’t a hype stock. It’s not riding on hope.

It’s delivering real cash flows, owns critical infrastructure, and holds stakes in other major growth stories.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

Act Now and Unlock a Potential 100+% Return within 12 to 24 months.

We’re now offering month-to-month subscriptions with no commitments.

For a ridiculously low price of just $9.99 per month, you can unlock our in-depth investment research and exclusive insights – that’s less than a single fast food meal!

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $9.99.

2. Enjoy a month of ad-free browsing, exclusive access to our in-depth report on the Trump tariff and nuclear energy company as well as the revolutionary AI-robotics company, and the upcoming issues of our Premium Readership Newsletter.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!


No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a month later!