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.
Dragon Images/Shutterstock.com
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.
8. QUALCOMM Incorporated (NASDAQ:QCOM)
EPS Growth past Five Years: 20.08%
TTM Net Income: $11.57 Billion
Number of Hedge Fund Holders: 76
QUALCOMM Incorporated (NASDAQ:QCOM) is one of the high-growth semiconductor stocks that are profitable in 2025. On October 6, reports emerged indicating that the company faces an antitrust lawsuit in the UK over claims that it abused its dominant position in the supply of chipsets for smartphones.
A UK consumer group alleges that the company has breached UK competition laws by exploiting its dominance in the patent licensing and chipset markets. The consumer group further claims that Qualcomm ended up charging manufacturers such as Apple and Samsung inflated fees for technology licenses.
The group wants consumers to be compensated, as device manufacturers ultimately passed additional costs on to consumers through higher prices for their devices. It is estimated that each affected consumer in the UK could receive £17 per phone if the action is successful.
QUALCOMM Incorporated (NASDAQ:QCOM) develops and supplies wireless technologies, semiconductors (such as Snapdragon chips), and licenses for communication services, fundamentally powering mobile devices and expanding into areas like the Internet of Things (IoT), automotive, and cloud computing.
7. ASML Holding N.V. (NASDAQ:ASML)
EPS Growth Past Five Years: 24.74%
TTM Net Income: $9.4 Billion
Number of Hedge Fund Holders: 78
ASML Holding N.V. (NASDAQ:ASML) is one of the high-growth semiconductor stocks that are profitable in 2025. On October 1, analysts at UBS reiterated a ‘Buy’ rating on the stock and increased the price target to EUR940.00 from EUR750.00.
The adjustment comes amid expectations that the company will deliver solid third-quarter results, which are expected to bolster the stock’s market sentiment. The research firm has already increased its earnings per share estimates for the stock by 15-10% for 2026 and 2027. The upgrade underscores the firm’s confidence that the company is well-positioned to capitalize on AI-led memory growth.
Additionally, UBS is confident about ASML Holdings’ prospects, owing to better-than-expected smartphone and PC sales that are driving sales for its products. UBS also expects favorable news flow for ASML over the next 12 months, which should support share price appreciation.
ASML Holding N.V. (NASDAQ:ASML) is a Dutch multinational company that designs, manufactures, and sells advanced equipment systems, primarily lithography machines, which are essential for the mass production of semiconductor chips used in all modern electronic devices. The company holds a dominant position in the global market, especially for extreme ultraviolet (EUV) lithography. This cutting-edge technology enables chipmakers to create smaller, faster, and more powerful chips.
6. Applied Materials, Inc. (NASDAQ:AMAT)
EPS Growth Past Five Years: 24.62%
TTM Net Income: $6.83 Billion
Number of Hedge Fund Holders: 81
Applied Materials Inc. (NASDAQ:AMAT) is one of the high-growth semiconductor stocks that are profitable in 2025. On September 26, the company secured a $2 billion unsecured revolving credit facility, with Bank of America serving as the administrative agent.
The agreement paves the way for the company to borrow up to $2 billion at any given time. Additionally, there is a provision that allows the company to increase the facility to a maximum of $3 billion if additional lender commitments are obtained.
Borrowing under the $2 billion credit facility is to bear an interest rate based on either the secured overnight financing rate (Term SOFR) plus a margin of 0.50% to 1.00%. The credit facility is poised to strengthen the company’s financial position, allowing it to finance general corporate purposes.
Applied Materials Inc. (NASDAQ:AMAT) provides advanced equipment, materials engineering services, and software that semiconductor and display manufacturers need to produce chips and advanced displays. It designs and builds manufacturing systems used to create virtually every new chip and flat panel display.
5. Lam Research Corporation (NASDAQ:LRCX)
EPS Growth Past Five Years: 22.42%
TTM Net Income: $5.36 Billion
Number of Hedge Fund Holders: 85
Lam Research Corporation (NASDAQ:LRCX) is one of the high-growth semiconductor stocks that are profitable in 2025. On September 30, analysts at HSBC initiated coverage of the stock with a “Hold” rating and a target price of $127.
The hold rating comes as HSBC expects the company to benefit from growing demand for wafer fab equipment and expansion of the available market. Lam Research already boasts a strong market position with an impressive 23.7% revenue growth over the past 12 months.
Amid robust revenue growth, HSBC has warned that growth outperformance over wafer fab equipment could slow due to tough comparisons in the foundry and NAND end markets. Nevertheless, it expects earnings per share to grow at a compound annual growth rate of 15.7% between 2025 and 2030.
Lam Research Corporation (NASDAQ:LRCX) is a global supplier that designs, manufactures, and services wafer fabrication equipment and process technologies for the semiconductor industry, enabling the creation of smaller, faster, and more powerful electronic devices.
4. Micron Technology, Inc. (NASDAQ:MU)
EPS Growth Past Five Years: 26.19%
TTM Net Income: $8.54 Billion
Number of Hedge Fund Holders: 94
Micron Technology, Inc. (NASDAQ:MU) is one of the high-growth semiconductor stocks that are profitable in 2025. On September 23, the company delivered solid fourth-quarter and fiscal 2025 results, underscoring its leadership in technology products and operational execution.
Revenue in the quarter increased to $11.32 billion, up from $7.75 billion delivered in the same quarter last year. The company also delivered non-GAAP net income of $3.47 billion, or $3.03 per diluted share. For the full year, revenue increased to $37.38 billion, compared to $25.11 billion delivered in the previous year. Full-year non-GAAP net income totaled $9.47 billion or $8.29 per diluted share.
“In fiscal 2025, we achieved all-time highs across our data center business and are entering fiscal 2026 with strong momentum and our most competitive portfolio to date. As the only U.S.-based memory manufacturer, Micron is uniquely positioned to capitalize on the AI opportunity ahead,” said Sanjay Mehrotra, Chairman, President, and CEO of Micron Technology.
Micron Technology, Inc. (NASDAQ:MU) is a semiconductor company that designs and manufactures innovative semiconductor memory and storage products, including DRAM, NAND, and NOR flash memory, which are essential components for computers, smartphones, data centers, automotive systems, and emerging technologies like artificial intelligence.
3. Advanced Micro Devices, Inc. (NASDAQ:AMD)
EPS Growth Past Five Years: 26.91%
TTM Net Income: $2.73 Billion
Number of Hedge Fund Holders: 113
Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the high-growth semiconductor stocks that are profitable in 2025. On October 1, reports emerged indicating the company could ink a deal with Intel for the manufacture of its chips.
AMD manufacturing its chips at Intel would be a significant win for Intel’s foundry business as the company seeks new big customers. Such a deal would also signal that AMD, which competes with Intel on chips for PC and servers, is ready to partner with its biggest competitor.
It remains unclear how much of the foundry business AMD will hand over to Intel, given that it manufactures most of its chips at Taiwan Semiconductor (TSMC). It is also unclear whether AMD would make a direct investment, similar to the deals struck by other companies.
Advanced Micro Devices, Inc. (NASDAQ:AMD) designs and develops high-performance computing and graphics components, including microprocessors (CPUs), graphics processing units (GPUs), and adaptive computing technologies. Its products are used in PCs, data centers, gaming, and embedded systems, powering everything from personal computers and gaming consoles to servers and supercomputers.
2. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
EPS Growth Past Five Years: 26.75%
TTM net income: $1.44 Billion
Number of Hedge Fund Holders: 187
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the high-growth semiconductor stocks that are expected to be profitable in 2025. On October 7, analysts at Bank of America reiterated a ‘Buy’ rating and raised the price target on the stock to NT$1,600 from NT$1,400.
The adjustment is in response to what the investment bank touts as an improved pricing outlook. Additionally, the bank expects the company to deliver stronger-than-expected earnings through 2026. Consequently, it has lifted its 2026 and 2027 earnings per share by 8% and 9% respectively.
“We lift 2026/27E EPS estimates by 8%/9% for TSMC, mainly due to an improved pricing outlook,” the analysts wrote. “Consequently, we raise our PO to NT$1,600 (US$330) from NT$1,400 (US$290), and the valuation base remains 2026E.”
Bank of America expects the company’s revenue to grow 24% year-over-year, driven by the ramp-up of 2nm technology. The bank expects the 2nm technology to contribute about 9% of TSM’s revenue. It also expects the company to benefit from strong demand for non-Apple smartphones and high-performance computing, which will drive momentum for the 3nm process.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) manufactures semiconductors, or microchips, for other companies that design them but don’t have their own factories, a business model known as a dedicated foundry. It also provides the most advanced and comprehensive portfolio of process technologies, including 2nm and 3nm, for a wide range of products.
1. NVIDIA Corporation (NASDAQ:NVDA)
EPS Growth past Five Years: 91.83%
TTM Net Income: $86.60 Billion
Number of Hedge Fund Holders: 235
Nvidia Corporation (NASDAQ:NVDA) is one of the high-growth semiconductor stocks that are profitable in 2025. On October 6, KeyBanc reiterated an ‘Overweight ‘rating on the stock and a $250 price target. The positive stance underscores the research firm’s confidence in the company’s prospects amid strong near-term hyperscaler demand.
Additionally, KeyBanc expects the semiconductor company to capitalize on the growing demand for GB200/300 products. Consequently, it expects the company to deliver better-than-expected results on November 19. It expects revenue of $56.3 billion and earnings per share of $1.28, much higher than consensus estimates of $54.5 billion and $1.24 a share.
Amid the better-than-expected results, the research firm also believes the company is on track to ship 30,000 racks this year, with approximately 10,500 in the third quarter and 14,000 in the fourth quarter. Additionally, the company’s financial results are expected to receive a boost from the renewed shipping of RTX6000D products to Chinese customers.
Nvidia Corporation (NASDAQ:NVDA) is a semiconductor giant that designs and produces accelerated computing products and platforms, primarily GPUs, used in major sectors like data centers, gaming, professional visualization, and autonomous vehicles. They serve as a key provider of hardware and the CUDA software ecosystem that powers AI development and infrastructure.
READ NEXT: 11 Best Nancy Pelosi Stocks to Buy Right Now and 12 Cheap AI Stocks to Buy Right Now.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email below.
Hedge Fund Resource Center