After a sharp downturn in 2023, the semiconductor industry rebounded in 2024 and is now firmly in an AI-driven growth phase. The World Semiconductor Trade Statistics (WSTS) group forecasts global chip sales to reach ~$728 billion in 2025, up 15% year-over-year, and climb to nearly $800 billion in 2026, led by surging demand for Memory and Logic chips used in AI systems.
Capital spending trends reinforce the momentum. According to industry association SEMI, global 300mm fab equipment investment is expected to exceed $100 billion in 2025, rising to ~$116 billion in 2026 and ~$138 billion by 2028. Growth is being driven by both AI compute demand and regional supply-chain diversification. At the leading edge, Extreme Ultraviolet (EUV) systems availability remains a constraint: ASML still guides 2025 revenue at €30–€35 billion, signaling machine bottlenecks as a pacing factor in node transitions.
On the demand side, AI compute continues to dominate. NVIDIA’s Q3 FY26 revenue reached $57 billion, with $51.2 billion from its Data Center unit, up 66% year-over-year. In response, TSMC raised its 2025 capex guidance to $40–$42 billion, with heavy investment in N3/N2 nodes and advanced packaging, though the company notes that AI demand for advanced-node capacity still outstrips supply by 3-1.
Memory and packaging are the most constrained layers of the stack. High Bandwidth Memory (HBM) has become critical to AI workloads, with SK hynix projected to hold a ~65% market share into 2026, per Meritz Securities, and reporting sold-out supply windows. Meanwhile, Micron Technology is investing $9.6 billion in a new HBM facility in Japan to expand capacity.
Overall, current investment and shipment trends suggest the industry could experience sustained double-digit growth through 2027 as HBM, CoWoS/2.5D packaging, and N3 to N2 capacity scale. While periodic bottlenecks in tools, power infrastructure, or skilled labor may arise, the broader buildout around AI silicon and advanced memory bandwidth remains on track.
Our Methodology
For our list of the fastest-growing semiconductor stocks to buy, we picked semiconductor stocks with the highest trailing twelve months revenue growth year-over-year and ranked them in that order. We also mentioned the companies’ 3-Year revenue growth rates. Still, our emphasis was on more recent growth rates for individual stocks, as some on the list only recently began growing rapidly and have a strong forward outlook. Our data source was stockanalysis.com. We’ve also mentioned the hedge fund sentiment for stocks as of Q3 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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
10. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Revenue Growth (YoY): 31.83%
3Y Revenue Growth: 11.95%
Number of Hedge Fund Holders: 115
Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the fastest-growing semiconductor stocks to buy. On December 3, Bank of America Securities analyst Vivek Arya reaffirmed a Buy rating on the stock, keeping his price target unchanged at $300. As of December 5, Advanced Micro Devices, Inc. (NASDAQ:AMD) enjoys highly positive analyst opinions with more than 80% analysts assigning it a Buy or equivalent rating. With a consensus 1-year median price target of $290, the stock still shows an upside potential of over 33%.
On the business side, on November 24, 2025, AMD said Zyphra trained ZAYA1, billed as the first large-scale Mixture-of-Experts foundation model trained entirely on an AMD platform, Instinct MI300X GPUs with Pensando networking, enabled by the ROCm open software stack. AMD highlighted that ZAYA1-base outperformed Llama-3-8B and OLMoE across multiple benchmarks and rivaled Qwen3-4B and Gemma3-12B. AMD also noted that MI300X memory capacity simplified training and delivered ~10× faster model save times in Zyphra’s pipeline.
The announcement follows an October collaboration update from IBM and AMD around deploying Instinct MI300X clusters on IBM Cloud for Zyphra; Zyphra’s own release the same day detailed the integrated AMD compute and networking setup used for ZAYA1 training. Together, the materials point to an end-to-end AMD stack — accelerators, networking, and software — powering Zyphra’s training run and technical report.
Advanced Micro Devices, Inc. (NASDAQ:AMD) designs high-performance computing and graphics products, including EPYC™ data-center CPUs, Instinct data-center GPUs, and Pensando DPUs and networking, alongside the ROCm software ecosystem used to build and deploy AI models.
9. MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI)
Revenue Growth (YoY): 32.58%
3Y Revenue Growth: 12.73%
Number of Hedge Fund Holders: 35
MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) is one of the fastest-growing semiconductor stocks to buy. On December 3, Tim Savageaux, an analyst at Northland, increased his price target on the stock from $200 to $225 and maintained his Outperform rating, according to TheFly. Following Marvell Technology’s acquisition of startup Celestial AI, Savageaux noted that several suppliers of lasers, external light sources, and other optical components are seeing improved long-term potential. He therefore updated his estimates and price target of this group of companies, including MACOM Technology.
Earlier on November 6, 2025, following the company’s earnings release, Truist’s William Stein reiterated Buy and raised his price target to $180 from $158, saying MACOM’s premium valuation is warranted by “consistent execution, baseline growth trajectory, and potential upside across its various end markets.” Stein also noted that the firm’s model carries $4.51 CY26 EPS and that MACOM’s early-2026 outlook appears robust; the new target implies a multiple of about 40x.
MACOM had reported Q4 FY25 revenue of ~$261.2 million and adjusted EPS of $0.94, with adjusted gross margin ~57.1%; full-year revenue reached $967.3 million (+32.6% y/y). Management on the call pointed to strong data-center demand, calling out momentum in 800G and the ramp toward 1.6T applications as drivers.
MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) designs analog, RF, microwave, and high-speed optical semiconductors used across data center, telecom, and industrial/defense markets.
