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.
8. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Revenue Growth (YoY): 36.96%
3Y Revenue Growth: 20.48%
Number of Hedge Fund Holders: 194
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the fastest-growing semiconductor stocks to buy. As of December 5, the company is a consensus Buy and boasts an over 20% potential upside to the consensus 1-year median price target of $355.
On the operations side, on November 25, 2025, TSMC filed a civil lawsuit in Taiwan’s Intellectual Property & Commercial Court against former senior vice president Wei-Jen Lo, who joined Intel in October, citing non-compete and confidentiality obligations, as well as Taiwan’s Trade Secrets Act.
Reuters later reported that Taiwan’s prosecutors searched two of Lo’s residences on November 27 and seized devices; prosecutors said Lo is suspected under the National Security Act. Intel publicly denied the allegations and said it sees no merit to the claims.
Coverage in major outlets the same week emphasized TSMC’s contention of a “high probability” that sensitive process know-how could be disclosed, while noting Lo’s long tenure in advanced-node R&D and Intel’s stance that talent mobility is routine and governed by strict IP policies.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the world’s largest dedicated semiconductor foundry, manufacturing advanced logic chips for global customers across compute, mobile, and AI, with leading-edge nodes spanning 5nm, 3nm, and in development 2nm.
7. Micron Technology, Inc. (NASDAQ:MU)
Revenue Growth (YoY): 48.85%
3Y Revenue Growth: 6.71%
Number of Hedge Fund Holders: 105
Micron Technology, Inc. (NASDAQ:MU) is one of the fastest-growing semiconductor stocks to buy. On November 29, 2025, multiple outlets cited a Nikkei Asia report that Micron plans to invest ¥1.5 trillion (~$9.6B) to build a new high-bandwidth memory (HBM) fab at its Hiroshima site, with construction slated to start around May 2026 and shipments targeted for circa 2028. Japan’s Ministry of Economy, Trade and Industry (METI) is expected to subsidize up to ¥500 billion of the project. That said, no official confirmation has come from the company.
Some reports frame the move as part of Japan’s push to onshore advanced semiconductor capacity and as Micron’s bid to scale HBM for AI data centers, where demand continues to run hot. Reports note the plan would expand Micron’s existing Hiroshima footprint and position it to compete more directly in next-gen HBM against SK hynix and Samsung as accelerator vendors ramp AI systems.
Micron Technology, Inc. (NASDAQ:MU) designs and manufactures memory and storage solutions, including DRAM, NAND, and HBM, for data center, AI, PC, mobile, automotive, and embedded markets, with major manufacturing sites in the U.S. and Asia.
6. NVIDIA Corporation (NASDAQ:NVDA)
Revenue Growth (YoY): 65.22%
3Y Revenue Growth: 87.11%
Number of Hedge Fund Holders: 234
NVIDIA Corporation (NASDAQ:NVDA) is one of the fastest-growing semiconductor stocks to buy. On December 1, 2025, NVIDIA and Synopsys announced a multiyear strategic partnership that includes a $2 billion investment by NVIDIA in Synopsys common stock.
The partners said they will integrate NVIDIA accelerated computing and AI with Synopsys’ design and simulation stack so R&D teams can design, simulate, and verify products with greater speed and precision, at lower cost. Synopsys applications will be broadly accelerated using CUDA-X libraries and AI physics. The plan also connects Synopsys AgentEngineer with NVIDIA’s agentic stack, including NIM microservices, the NeMo Agent Toolkit, and Nemotron models, to enable autonomous design capabilities in EDA and simulation workflows.
They will build next-generation digital twins using NVIDIA Omniverse and Cosmos across industries such as semiconductor, aerospace, automotive, energy, industrial, and healthcare, with cloud-ready offerings and joint go-to-market initiatives leveraging Synopsys’ global sales network. The official release specifies the purchase price of $414.79 per share and notes the collaboration is non-exclusive.
NVIDIA Corporation (NASDAQ:NVDA) is a leader in AI and accelerated computing, providing GPU platforms and software that power workloads from data centers to edge devices.
5. Astera Labs, Inc. (NASDAQ:ALAB)
Revenue Growth (YoY): 136.51%
3Y Revenue Growth: N/A
Number of Hedge Fund Holders: 57
Astera Labs, Inc. (NASDAQ:ALAB) is one of the fastest-growing semiconductor stocks to buy. On November 18, 2025, Astera Labs said its Leo CXL® Smart Memory Controllers are enabled in preview on Microsoft Azure M-series VMs. That allowed customers to evaluate CXL memory expansion for their own workloads. The company framed Azure M-series as the industry’s first announced deployment of CXL-attached memory, aimed at tackling the “memory wall” in data-hungry use cases like in-memory databases, AI inference, KV-cache for LLMs, and big-data analytics.
Astera highlighted that Leo supports CXL 2.0 and up to 2TB per controller, allowing cloud providers to scale server memory capacity by >1.5×. The firm points readers to technical resources for the Azure preview and to product specs that outline how Leo handles memory expansion and pooling to relieve capacity bottlenecks in modern servers.
Astera Labs, Inc. (NASDAQ:ALAB) builds semiconductor-based connectivity solutions for rack-scale AI infrastructure, with its Leo CXL Smart Memory Controllers positioned to extend and pool memory for cloud and AI workloads.
4. Credo Technology Group Holding Ltd. (NASDAQ:CRDO)
Revenue Growth (YoY): 175.81%
3Y Revenue Growth: 68.25%
Number of Hedge Fund Holders: 56
Credo Technology Group Holding Ltd. (NASDAQ:CRDO) is one of the fastest-growing semiconductor stocks to buy. On November 24, 2025, Credo said it reached a license agreement with The Siemon Company covering Credo’s patents for active electrical cable (AEC) technology; the parties issued a joint statement and said terms are confidential.
While the release doesn’t spell out strategic rationale beyond the joint announcement, Credo consistently positions AECs and its broader high-speed connectivity portfolio as aimed at easing bandwidth bottlenecks with better energy efficiency and reliability across fast-growing Ethernet port speeds (100G, 200G, 400G, 800G, and emerging 1.6T). In that context, licensing AEC patents to a long-standing data-center connectivity brand like Siemon aligns with Credo’s stated mission to enable next-gen, AI-driven networks with scalable, power-aware solutions.
While the announcement provides the date, scope (AEC patents), counterpart (The Siemon Company), and the confidentiality of the terms, it didn’t offer any details on revenue contribution, timelines, or exclusivity.
Credo Technology Group Holding Ltd. (NASDAQ:CRDO) develops secure, high-speed connectivity solutions spanning integrated circuits for optical and line-card markets, HiWire® Active Electrical Cables, and SerDes chiplets, with IP offerings centered on SerDes. The company says its innovations target AI, cloud, and hyperscale networks by improving power, security, and reliability.
3. Mobix Labs, Inc. (NASDAQ:MOBX)
Revenue Growth (YoY): 180.13%
3Y Revenue Growth: 193.38%
Number of Hedge Fund Holders: 6
Mobix Labs, Inc. (NASDAQ:MOBX) is one of the fastest-growing semiconductor stocks to buy. On November 19, 2025, the company said it took a strategic minority stake in TalkingHeads Wireless (THW), expanding into high-growth AI infrastructure and deepening a partnership that began in November 2024.
The deal’s rationale is straight from management: AI-era wireless networks need much higher efficiency, and THW’s AI-driven power management, paired with Mobix’s RF engineering, targets significant energy savings at the base-station level. THW is already in advanced prototyping, and the companies frame the combination as an on-ramp to next-gen communications systems where real-time analytics dynamically allocate power and cut waste. Terms weren’t disclosed, but Mobix positions the investment as not just a one-off but a fast entry into the AI infrastructure ecosystem, and an extension of work the two began in 2024 on AI-enabled, energy-efficient base-station tech.
Management also points to market pull: the release pitches AI-driven efficiency in wireless and next-gen communications as a rapidly growing opportunity, with Mobix’s role to commercialize alongside THW rather than reinvent the wheel in-house. The company’s investor site and third-party reprints echo the same thrust and timing, reinforcing the AI infrastructure strategy narrative.
Mobix Labs, Inc. (NASDAQ:MOBX) is a fabless semiconductor and connectivity company focused on high-performance RF, optical, and mixed-signal solutions for communications, defense, and emerging AI infrastructure markets.
2. POET Technologies Inc. (NASDAQ:POET)
Revenue Growth (YoY): 535.87%
3Y Revenue Growth: 29.26%
Number of Hedge Fund Holders: 3
POET Technologies Inc. (NASDAQ:POET) is one of the fastest-growing semiconductor stocks to buy. On December 3, Northland increased its price target on the stock from $7 to $8 and maintained its Outperform rating, according to TheFly. Following Marvell Technology’s acquisition of startup Celestial AI, Northland noted that several suppliers of lasers, external light sources, and other optical components are seeing improved long-term potential. The firm therefore updated its estimates and price target of this group of companies, including POET Technologies.
Earlier, on November 11, 2025, POET announced a collaboration with Quantum Computing Inc. (NASDAQ:QUBT) to co-develop 3.2 Tbps optical engines for co-packaged optics (CPO) and next-gen AI connectivity.
The project centers on 400G-per-lane thin-film lithium niobate (TFLN) modulators integrated on the POET Optical Interposer™. POET will fund development, with completion targeted for the second half of 2026. Management clearly frames the reasons: AI data centers and hyperscalers need far higher bandwidth, and a TFLN-based 400G/lane modulator on a scalable interposer platform aims to meet that demand while doubling the speeds of today’s fastest networking devices. QUBT says POET’s interposer is the key enabler for a commercially viable 400G/lane device; POET calls TFLN a “radical step forward” for connectivity as it continues to execute on its sales strategy for existing products.
The companies also point to market pull: 3.2T solutions in pluggable and CPO formats are projected to reach $12 billion by 2030, according to LightCounting (September 2025).
POET Technologies Inc. (NASDAQ:POET) designs and develops high-speed optical engines, light sources, and custom optical modules for AI systems and hyperscale data centers. Its patented Optical Interposer platform integrates photonic and electronic devices at chip scale using established semiconductor manufacturing techniques.
1. SemiLEDs Corporation (NASDAQ:LEDS)
Revenue Growth (YoY): 729.8%
3Y Revenue Growth: 82.71%
Number of Hedge Fund Holders: 2
SemiLEDs Corporation (NASDAQ:LEDS) is one of the fastest-growing semiconductor stocks to buy. On November 28, 2025, the company reported fiscal Q4 and full-year 2025 results.
Revenue was $13.2 million in Q4 (down from $17.7 million in Q3), with a GAAP net loss of $1.2 million, or -$0.15 per share. Gross margin was 2% and operating margin was −7%. Cash at the end of the quarter was $2.6 million. For FY2025, revenue jumped to $43 million from $5.2 million in FY2024; GAAP net loss narrowed to $1.1 million from $2.0 million, while full-year gross margin declined to 6% and operating margin improved to −4%.
Why did revenue explode this year, and why the volatility? The company has said that the surge was driven largely by “buy-sell” purchase orders of equipment that flowed through “Other revenues,” creating concentration risk and quarter-to-quarter swings (one Q2 customer was 87% of revenue). Management also outlined a pivot toward a fabless model to cut idle-capacity costs and focus on higher-margin modules and UV LED products for niche applications, which it believes can improve operating results and cash flow.
Independent trade coverage also highlighted the eight-fold increase in full-year revenue, while noting Q4 margin pressure and a sequential revenue pullback from Q3.
At a glance, SemiLEDs Corporation (NASDAQ:LEDS) develops and manufactures LED chips and components for general and specialty lighting (including UV curing, medical/cosmetic, counterfeit detection, horticulture, architectural and entertainment uses), with operations centered in Hsinchu, Taiwan.
While we acknowledge the potential of LEDS 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 LEDS and that has 100x upside potential, check out our report about this cheapest AI stock.
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