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.
8. United Microelectronics Corporation (NYSE:UMC)
Number of Hedge Fund Holders: 18
P/E: 11.89
United Microelectronics Corporation (NYSE:UMC), a leading semiconductor foundry based in Hsinchu, Taiwan, provides IC fabrication services across major electronics sectors. Currently, UMC trades in the middle of its 52-week range and below its 200-day moving average, reflecting tempered price momentum.
For Q1 2025, revenue stood at $1.76 billion, flat year-over-year but down 5.79% sequentially, impacted by a one-time price adjustment and a Chinese New Year earthquake. Gross margin came in at 26.7%, with net income at $241.18 million. Despite near-term headwinds, wafer shipments grew 12% YoY, lifting Q1 revenue by 5.9% compared to last year.
United Microelectronics Corporation (NYSE:UMC) boasts a strong 5-year sales return of over 183% and a 5.68% YTD gain. Recognized for its ESG leadership, UMC secured a “Top 1%” ranking in the S&P Global Sustainability Yearbook 2025.
Strategically, United Microelectronics Corporation (NYSE:UMC)’s partnership with Intel on a collaborative Arizona project shows promising progress, bolstering long-term growth prospects.
Analyst sentiment remains mixed for United Microelectronics Corporation (NYSE:UMC) as 33% maintained a Buy rating and 50% maintained Hold, with a median price target of $5.75, suggesting a 16.42% potential downside from the last close ($6.87). Bernstein recently reiterated a Sell rating, targeting $4.80.
7. STMicroelectronics N.V. (NYSE:STM)
Number of Hedge Fund Holders: 22
P/E: 13.28
STMicroelectronics N.V. (NYSE:STM), a leading global semiconductor player headquartered in the Netherlands, designs and manufactures chips for automotive, industrial, personal electronics, and communication sectors. Despite industry headwinds, Kepler Capital recently reiterated a “Buy” rating with a €31.00 price target, reflecting strong medium-term confidence.
Currently trading at €20.38, STMicroelectronics N.V. (NYSE:STM) projects Q2 revenue of $2.71 billion — down 16% YoY but up 7.7% sequentially — signaling early signs of stabilization. Gross margin guidance of 33.4%, though lower than last year’s 40.1%, remains robust given weak demand trends in automotive and industrial segments.
Notably, STMicroelectronics N.V. (NYSE:STM) is positioning for future growth through innovation. On April 16, the company unveiled Stellar with xMemory, a game-changing automotive microcontroller aimed at simplifying software-defined vehicle (SDV) development and cutting costs. Production begins in 2025, targeting the EV market’s evolving needs.
Financially, STMicroelectronics N.V. (NYSE:STM) reported FY revenue of $13.27 billion and Q1 revenue of $2.52 billion, both sharply down over 20% YoY. Analyst sentiment remains cautious but constructive: among 29 ratings, 38% are “Buy” and 59% “Hold,” with a median price target of $25.00, suggesting a 27.5% upside.
STM’s innovation pipeline and market leadership make it one of the best cheap semiconductor stocks to buy.
6. Synaptics Incorporated (NASDAQ:SYNA)
Number of Hedge Fund Holders: 27
P/E: 12.77
Synaptics Incorporated (NASDAQ:SYNA), a leader in human interface semiconductor solutions, continues to drive innovation across mobile computing, entertainment, and communications markets. Headquartered in San Jose, CA, the company recently launched the S3930 series touch controllers, targeting the fast-growing foldable OLED device market (42% CAGR). This launch highlights Synaptics’ technical edge, leveraging patented multi-frequency-region parallel sensing (MFRPS) technology for superior performance. It is among the cheap semiconductor stocks to buy now.
Despite innovation momentum, Synaptics Incorporated (NASDAQ:SYNA) faces near-term headwinds. Mizuho lowered its price target from $90 to $80, citing softening automotive trends and tariff risks. However, declining inventories and improved outlooks hint at a stronger second half of 2025.
Strategic partnerships are another positive. Synaptics Incorporated (NASDAQ:SYNA) announced collaborations with VBox Communications for ATSC 3.0 digital broadcasting and with Google for Edge AI in IoT, integrating Google’s ML core with Synaptics Astra hardware.
Financially, Synaptics Incorporated (NASDAQ:SYNA) reported FY revenue of $959.4 million and Q2 revenue of $267.2 million. While annual revenue dropped 29.2%, quarterly growth rebounded 3.69%. Net income surged 70.65% year-over-year, driven by operating efficiencies.
Analyst sentiment remains bullish: 70% of ratings are Buy/Strong Buy, with a median price target of $95, implying a 67% upside from current levels.
Synaptics Incorporated (NASDAQ:SYNA) remains a compelling play on next-gen device innovation and IoT growth.
5. Silicon Motion Technology Corporation (NASDAQ:SIMO)
Number of Hedge Fund Holders: 39
P/E: 15.7
Silicon Motion Technology Corporation (NASDAQ:SIMO), a Hong Kong-based leader in NAND flash controllers and storage solutions, is showing renewed momentum after a tough stretch. On April 24, BofA Securities upgraded the stock to Neutral from Underperform, despite trimming its price target to $47 from $50. Shares rallied nearly 8% on the news, as analyst Simon Woo noted the stock had been “overly corrected” following a 40% decline since August 2024.
Currently trading at a price-to-book ratio of 1.7—below its historical 2–4x range—Silicon Motion Technology Corporation (NASDAQ:SIMO) presents value. The company also offers a robust 5.05% dividend yield, with a confirmed quarterly payout of $0.50 per ADS, and the next installment is due May 22, 2025.
Silicon Motion Technology Corporation (NASDAQ:SIMO)’s revenue grew 25.2% year-over-year to $802.1 million, with net income surging 70.9% to $90.6 million. EPS rose 69.6% to $2.69. Meanwhile, Silicon Motion continues to innovate, recently launching its MonTitan SSD RDK platform, targeting AI-driven enterprise storage.
With 84.1% institutional ownership, a 55% upside to the $70 median price target, and 89% analyst Buy ratings, Silicon Motion Technology Corporation (NASDAQ:SIMO) could offer strong rebound potential amongst cheap semiconductor stocks to buy.
4. Monolithic Power Systems, Inc. (NASDAQ:MPWR)
Number of Hedge Fund Holders: 51
P/E: 14.85
Monolithic Power Systems, Inc. (NASDAQ:MPWR) is a leading fabless semiconductor company specializing in high-performance, energy-efficient power solutions for a range of industrial, cloud computing, automotive, and consumer applications. Headquartered in Kirkland, Washington, Monolithic Power Systems, Inc. (NASDAQ:MPWR) leverages its advanced technologies to serve global markets with cutting-edge power management solutions. It is among the best cheap semiconductor stocks to buy now.
For the full year, Monolithic Power Systems, Inc. (NASDAQ:MPWR) reported total revenue of $2.21 billion, marking a robust 21.2% increase year-over-year, while fourth-quarter revenue held steady at $621.66 million. Net income surged an impressive 318.06% year-over-year to $1.79 billion, with Q4 net income at $1.45 billion, maintaining strong momentum quarter-over-quarter. The company has delivered an outstanding 5-year sales growth return of 225.30%, underscoring its consistent operational strength.
Investor sentiment remains positive, with 74% of 19 analysts rating the stock a “Buy.” The median price target stands at $762.50, implying a potential upside of 30.63%. Stifel Nicolaus analyst Tore Svanberg recently reaffirmed a “Buy” rating with a bullish $880.00 price target. Monolithic Power Systems, Inc. (NASDAQ:MPWR) advanced 8.15% to close at $580.75 on April 24, outperforming the broader market and marking their third consecutive day of gains. The company will report its Q1 2025 earnings soon, keeping investor interest high.
3. ON Semiconductor Corporation (NASDAQ:ON)
Number of Hedge Fund Holders: 52
P/E: 10.31
ON Semiconductor Corporation (NASDAQ:ON) headquartered in Scottsdale, AZ, delivers intelligent power and sensing solutions, focusing on automotive and industrial markets. Operating through Power Solutions Group (PSG), Analog and Mixed-Signal Group (AMG), and Intelligent Sensing Group (ISG), the company continues to innovate.
In March, ON Semiconductor Corporation (NASDAQ:ON) launched the Hyperlux ID family—the industry’s first real-time indirect time-of-flight (iToF) sensor. Offering long-range depth sensing up to 30 meters and real-time 3D imaging, Hyperlux ID combines visual and depth data in one compact device, addressing limitations of traditional iToF sensors. Additionally, onsemi introduced its first 1200V silicon carbide (SiC) MOSFET-based SPM 31 IPMs, delivering industry-leading efficiency, thermal performance, and system cost advantages for industrial inverter applications.
Financially, ON Semiconductor Corporation (NASDAQ:ON) reported $7.08 billion in 2024 revenue (down 14% YoY) and $1.57 billion in net income (down 28% YoY). Despite a strong 170% five-year return, near-term outlooks are cautious. B. Riley downgraded ON Semiconductor Corporation (NASDAQ:ON) to “Neutral” from “Buy,” cutting the price target to $41, citing weaker auto and industrial demand. Still, analyst consensus sees a median price target of $55, offering 39% upside potential. Institutional ownership remains strong at 104.64%, signaling confidence in ON Semiconductor Corporation (NASDAQ:ON)’s long-term strategic positioning.
2. QUALCOMM Incorporated (NASDAQ:QCOM)
Number of Hedge Fund Holders: 79
P/E: 15.29
QUALCOMM Incorporated (NASDAQ:QCOM), a leader in mobile and wireless technologies, continues to strengthen its innovation edge across connectivity, AI, and IoT markets. In March 2025, the company launched the Qualcomm X85 5G Modem-RF, its eighth-generation 5G solution, delivering faster speeds, better battery life, and enhanced network reliability. QUALCOMM Incorporated (NASDAQ:QCOM) also introduced “Dragonwing,” a new brand catering to industrial IoT and networking solutions, emphasizing low-power, high-performance AI-driven products.
Further expanding its AI capabilities, QUALCOMM Incorporated (NASDAQ:QCOM) acquired MovianAI, the generative AI arm of VinAI, boosting its R&D depth across machine learning and computer vision.
QUALCOMM Incorporated (NASDAQ:QCOM) posted strong financial results, supported by growth in 5G, AI, and IoT markets. Total revenue for FY2024 stood at $38.96 billion, marking an 8.77% increase year-over-year. Q1 FY2025 revenue reached $11.67 billion, up 13.91% sequentially. Net income for the year rose sharply to $10.14 billion, a 40.24% year-over-year jump, with Q1 net income at $3.18 billion, reflecting a 9.09% increase over the previous quarter.
Analyst sentiment remains positive, with 54% rating it a “Buy” and a median price target of $190, implying a 27.89% upside from current levels as of 27th April. With a robust product pipeline, aggressive AI expansion, and solid earnings momentum, QUALCOMM Incorporated (NASDAQ:QCOM) remains a compelling semiconductor stock in 2025.
1. Micron Technology, Inc. (NASDAQ:MU)
Number of Hedge Fund Holders: 94
P/E: 13.16
Micron Technology, Inc. (NASDAQ:MU) is a global leader in memory and storage technology, fueling the performance and capacity of data centers and mobile devices to embedded systems and AI infrastructure. With decades of DRAM, NAND, and emerging memory innovation, Micron is a driving force in the world’s digital economy. It is among the best cheap semiconductor stocks to invest in.
Micron Technology, Inc. (NASDAQ:MU) has rallied 19.54% in the last week, driven by positive analyst opinion and tactical business restructuring. Wells Fargo and Citi analysts both have “Buy” ratings on the stock, with a median price target of $130, implying almost 63% potential upside. Institutional holders own more than 83% of shares, indicating robust confidence in Micron’s long-term growth narrative.
On April 17th, Micron Technology, Inc. (NASDAQ:MU) issued a far-reaching business unit reorganization to more fully seize opportunities fueled by the AI boom, from hyperscale data centers to edge devices. The restructuring is intended to cut through complexity and hasten innovation in key end markets.
Micron Technology, Inc. (NASDAQ:MU) has also secured its technological leadership and is the first company globally to ship HBM3E and SOCAMM memory solutions for AI servers in collaboration with NVIDIA. These offerings will be a part of next-generation AI systems like NVIDIA’s Hopper and Blackwell platforms.
Financially, Micron Technology, Inc. (NASDAQ:MU) reported $25.11 billion in annual revenue (61.6% year-over-year increase) and $778 million in net income (113.3% increase). Although there was a slight quarter-over-quarter decline, the trend is firmly positive. With innovative products, AI tailwinds, and strong execution, Micron is positioned for long-term growth in the new tech cycle.
Overall, Micron Technology, Inc. (NASDAQ:MU) ranks first among the 10 cheap semiconductor stocks to buy now. While we acknowledge the potential of semiconductor stocks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than MU but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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