In this article, we will take a look at the 10 High-Growth Semiconductor Stocks That Are Profitable in 2025.
The artificial intelligence boom has made the semiconductor sector a firm favorite among investors on Wall Street. That’s evident as the VanEck Semiconductor ETF, which tracks some of the biggest and successful semiconductor companies, is up by more than 30% for the year, dwarfing the 14% gain for the S&P 500 over the same period.
The blockbuster gains underscore how investors are increasingly turning to semiconductor stocks as they look to capitalize on the AI boom.
“If you are very bullish on growth in technology, then you’re going to want to add more semiconductor ETFs in your portfolio, “said senior ETF & technical strategist at Strategas Securities, Todd Sohn.
While valuation concerns are emerging, on most stocks rallying to record highs, there is still room for additional gains. That is because the artificial intelligence spectacle is still in the early stages of growth. According to Melissa Weathers of Deutsche Bank, positive dynamics continue to impact the semiconductor space.
“The primary drivers of our improved outlook are more favorable memory supply-demand conditions, momentum at second-tier foundries, and an updated outlook on China,” Weathers said.
Likewise, semiconductor stocks are expected to remain at the center of global markets as demand for advanced chips to power the AI revolution continues to grow and shows no signs of slowing down. The Semiconductor Industry Association reports that global chip sales soared to $48.6 billion in July, representing a 12.5% month-over-month increase. The increase underscores the importance of leading foundries and chip designers as the broader AI economy expands.
With that in mind, let’s look at some of the high-growth semiconductor stocks that are profitable in 2025.
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Our Methodology
For our methodology, we began by using Finviz to screen for semiconductor companies whose earnings per share have grown by more than 20% over the past five years. We then used Yahoo Finance and settled on stocks with trailing twelve-month (TTM) net income of more than $1 billion. Finally, we ranked the companies based on the number of hedge fund holders, as reported by Insider Monkey’s Q2 2025 data, to capture institutional investor interest.
Why are we interested in the stocks that hedge funds pile into? The reason is straightforward: our research has demonstrated that we can outperform the market by replicating 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).
High-Growth Semiconductor Stocks That Are Profitable in 2025
10. Monolithic Power Systems, Inc. (NASDAQ:MPWR)
EPS Growth Past Five Years: 72.75%
TTM Net Income: $1.86 Billion
Number of Hedge Fund Holders: 41
Monolithic Power Systems, Inc. (NASDAQ:MPWR) is one of the high-growth semiconductor stocks that are profitable in 2025. On September 30, KeyBanc Capital Markets raised the stock’s price target to $1,050 from $950 and maintained an ‘Overweight’ rating, impressed by the company’s strengthening position in the AI chip power management market.
The price target hike comes as the company has delivered 34.3% revenue growth over the last 12 months. Revenue growth is driven by Monolithic Power’s significant market share gains in Nvidia’s Blackwell Ultra B300 HGX AI chips. The company has secured a 50% share of the B300 HGX platform due to supply constraints limiting competitors’ activities.
KeyBanc Capital Markets expects the company to win significant business on Nvidia’s Rubin R200 HGX platform due to the B300 HGX Platform’s edge. Consequently, the research firm has revised the company’s financial projections. It now expects the Enterprise segment to decline by only 4% in 2025, which is better than the 10% decline initially predicted by management.
Monolithic Power Systems, Inc. (NASDAQ:MPWR) is a semiconductor company that designs and develops high-performance, integrated power solutions, including DC-to-DC converters, power modules, motor drivers, and power management chips.
9. KLA Corporation (NASDAQ:KLAC)
EPS Growth Past Five Years: 31.57%
TTM Net Income: $4.06 Billion
Number of Hedge Fund Holders: 58
KLA Corp (NASDAQ:KLAC) is one of the high-growth semiconductor stocks that are profitable in 2025. On September 22, Morgan Stanley downgraded the stock to ‘Equal-weight’ from Overweight and increased the price target to $1,093 from $928.
The downgrade comes amid concerns that valuation remains stretched, with the stock trading at a 30% valuation premium. Despite the downgrade, the research firm has reiterated the company’s strong fundamentals, which are supported by growing demand from TSMC, DRAM, and advanced packaging.
Consequently, the investment bank has raised the company’s EPS estimate for 2026 to $39.03 from $37.11. Morgan Stanley remains confident about the company’s prospects, as wafer fab equipment revenue is expected to grow by 10% to $128 billion, up from the previous 5% growth forecast.
KLA Corp (NASDAQ:KLAC) develops and manufactures equipment, software, and services for process control and yield management in the semiconductor and electronics industries, focusing on advanced inspection, metrology, and other solutions to find defects, monitor manufacturing processes, and improve the quality and profitability of integrated circuits (ICs), wafers, and reticles.
