In this article, we take a look at the 10 Cheap Semiconductor Stocks to Buy Now.

The semiconductor industry has been experiencing a recent wave of surging demand, technological innovation, and shifting macroeconomic dynamics. According to Deloitte, after a robust performance in 2024, the global semiconductor market is forecasted to grow even further in 2025, with total sales expected to reach an all-time high of $697 billion.

This trajectory places the sector firmly on track to meet a great milestone of $1 trillion in annual sales by 2030, for which the sector will require a compound annual growth rate of 7.5% from 2025 onward. By 2040, that figure could potentially double again, underscoring the long-term investment appeal of the semiconductor value chain.

The extraordinary demand for generative artificial intelligence (gen AI) processors is a major factor in this growth. The gen AI chip market was initially expected to reach $50 billion, according to Deloitte’s 2024 Technology, Media, and Telecommunications Predictions. It greatly exceeded those projections, surpassing $125 billion in 2024 and contributing to more than 20% of worldwide chip sales. A combination of CPUs, GPUs, memory, and data center components is driving the rapid expansion of AI infrastructure, which is expected to drive the semiconductor industry and generate disproportionate profits for market leaders while also changing capital allocation tactics.

However, not all corners of the semiconductor landscape have enjoyed AI-level tailwinds. Segments like automotive, analog, and smartphone chips struggled in 2024, hampered by oversupply and subdued end-market demand. Yet, as 2025 unfolds, these verticals are showing signs of recovery. Automotive chips stand to benefit from the ongoing electrification of transport and adoption of advanced driver-assistance systems (ADAS). Analog and IoT-focused semiconductors are gaining renewed investor interest as key markets stabilize. Even the smartphone segment, though slower to rebound, could offer selective upside driven by next-gen device rollouts and operational efficiencies.

The current market environment adds a unique layer of complexity—and opportunity. Following a selloff that has rattled tech stocks in early 2025, valuations across the board have compressed, particularly in the AI and high-growth segments. While not yet at the deep-discount levels seen during the 2022 downturn, the recent correction has made many quality names appear far more attractively priced. According to Morningstar, this has opened a window for investors to re-enter or increase exposure to the sector at more reasonable valuations, especially as overvalued concerns give way to strategic re-evaluation.

Amid this evolving backdrop, lesser-known and undervalued players in the memory and semiconductor equipment spaces are also beginning to draw attention. Stabilizing demand, improved customer alignment, and increasing relevance in the AI hardware ecosystem are providing the groundwork for a potential re-rating. Meanwhile, investment in automation and IoT technologies continues to climb, highlighting a broader market transition that favors resilience and adaptability.

In this article, we identify 10 cheap semiconductor stocks that offer compelling value in today’s shifting landscape. But before diving into the list, we outline the methodology used to filter and evaluate these opportunities.

Our Methodology

For this article, we have screened the most active current semiconductor stocks with a low P/E to arrive at our list of cheap semiconductor stocks to buy now. From there, we picked companies with the highest number of hedge fund investors, as per Insider Monkey’s database of Q4 2024. The stocks are ranked in ascending order of their hedge fund investors.

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. ChipMOS TECHNOLOGIES INC. (NASDAQ:IMOS)

Number of Hedge Fund Holders: 2

P/E: 13

ChipMOS TECHNOLOGIES INC. (NASDAQ:IMOS) is a leading provider of outsourced semiconductor assembly and testing services (OSAT), catering to fabless companies, IDMs, and foundries. The company, headquartered in Hsinchu, Taiwan, operates across Testing, Assembly, LCD Driver ICs, Bumping, and other services.

On April 10, 2025, ChipMOS TECHNOLOGIES INC. (NASDAQ:IMOS) reported its unaudited March and Q1 results, with Q1 revenue reaching $166.97 million, translating to $706.65 million on an annualized basis. Revenues rose 3.14% year-over-year, reflecting improving customer inventory levels and slight gains from the turns business, though down 11.06% sequentially.

Over the past five years, ChipMOS TECHNOLOGIES INC. (NASDAQ:IMOS) delivered a solid 13.31% return. Analyst sentiment is cautious, with 20% rating IMOS a Buy and 60% recommending Hold. The median price target is $23.17, implying a potential upside of nearly 44% from current levels. Despite short-term headwinds, the company remains well-positioned amid strengthening end-market dynamics and gradual industry recovery.

9. Himax Technologies, Inc. (NASDAQ:HIMX)

Number of Hedge Fund Holders: 13

P/E: 14.95

Himax Technologies, Inc. (NASDAQ:HIMX) is a Taiwan-based semiconductor firm specializing in display imaging and processing technologies. Operating through its Driver IC and Non-Driver Products segments, Himax reported annual revenue of $905.2 million, with Q4 revenue at $236.5 million, down 4.5% year-over-year but stable sequentially, hinting at a potential turnaround.

In March 2025, Himax Technologies, Inc. (NASDAQ:HIMX) announced a strategic MoU with Tata Electronics and PSMC to build India’s display and AI sensing ecosystem, positioning itself for long-term growth in a key emerging market. The Company also unveiled its WiseEye AI technology, targeting ultralow-power AI sensing, biometrics, and thermal imaging, alongside new liquid crystal optical solutions through its subsidiary Liqxtal.

Retail investors hold significant sway in Himax Technologies, Inc. (NASDAQ:HIMX), while institutional ownership stands at 20.8% across 176 institutions. Analysts remain bullish, with a “Buy” rating and a $15.00 median price target, suggesting a potential 112% upside.

With strategic partnerships, innovative product launches, and early signs of revenue stabilization, Himax Technologies, Inc. (NASDAQ:HIMX) is a turnaround candidate amongst cheap semiconductor stocks to buy now.