In this article, we will look at the 10 Most Oversold Semiconductor Stocks So Far in 2025.
The World Semiconductor Trade Statistics (WSTS) organization released its Spring 2025 forecast in early June. Following a strong recovery in 2024, the organization forecasts that the global semiconductor market will grow by 11.2% in 2025, reaching a total value of $700.9 billion. This growth is mainly driven by continued momentum in the Logic and Memory segments, which are expected to experience strong double-digit increases due to rising demand for AI technologies, cloud computing infrastructure, and advanced consumer electronics.
On the other side, Discrete Semiconductors, Optoelectronics, and Micro ICs are projected to decline slightly. These declines are said to be caused by the ongoing trade tensions and economic headwinds which have disrupted certain supply chains and weakened demand in some applications.
Despite these patchy trends, recent monthly data has been encouraging. On July 7, the Semiconductor Industry Association (SIA) reported that global semiconductor monthly sales reached $59.0 billion in May 2025, which meant a 19.8% year-over-year increase from $49.2 billion in May 2024. On a month-over-month basis, this sales figure reflected a 3.5% rise over April 2025.
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Adding perspective on the geopolitical landscape, Daniel Newman, CEO of The Futurum Group, discussed the complex dynamics between the U.S. and China in the semiconductor industry during an interview on CNBC on July 16. He emphasized that while both countries rely on each other in many ways, China currently depends more on U.S. chip technology, particularly for powering the development of artificial intelligence (AI).
He further asserted that AI is quickly becoming a key driver of global economic leadership, and advanced semiconductors are central to that progress. Although China has been working to build its own high-performance chips, U.S. technology remains ahead, both in raw power and in supporting software. Despite recent export controls, there is still strong demand in China for U.S. chips, which are viewed as more capable and widely adopted.
The semiconductor sector continues to benefit from strong global demand, particularly through advancements driven by AI. Even so, several stocks have underperformed in 2025 and are trading well below levels that their underlying fundamentals would suggest. In many cases, these declines appear disconnected from the companies’ long-term potential.
With that in mind, let’s explore the 10 most oversold semiconductor stocks so far in 2025.
A closeup of a hand manipulating a complex piece of machinery in a semiconductor factory.
Our Methodology
To identify the most oversold semiconductor stocks so far in 2025, we began by screening for U.S.-listed semiconductor companies with a market capitalization of at least $2 billion that have experienced sharp year-to-date (YTD) share price declines, trailing the S&P Semiconductor Industry Index’s YTD gains of approximately +9% (as of July 21). These large declines may represent temporary market disruptions or investor overreaction, and not necessarily indicate a deterioration in fundamentals. From this initial pool, we selected 10 stocks with the steepest YTD losses and ranked them in descending order based on their performance. Additionally, we have added the number of hedge fund holders for each stock, based on the hedge fund sentiment data as of Q1 2025 from Insider Monkey’s database.
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Note: All pricing and analyst rating data are as of market close on July 21, 2025.
10 Most Oversold Semiconductor Stocks So Far in 2025
10. Diodes Inc. (NASDAQ:DIOD)
Year-to-Date Performance: -10.4%
Number of Hedge Fund Holders: 28
Diodes Inc. (NASDAQ:DIOD) is one of the most oversold semiconductor stocks so far in 2025. While the stock is down over 10% YTD, this performance still compares better than the 24% decline in 2024. That said, analysts remain divided on the name with their view balanced between caution and long-term optimism.
Leaning on the positive side, in mid-June, David Williams, an analyst with Benchmark Co., reiterated his Buy rating on Diodes and raised his price target to $62 from $55. This update followed his meetings with the management, and reflects his growing confidence in the company’s evolving strategy under the new leadership.
According to Williams, Diode Inc. is shifting its strategy with newly appointed CEO Gary Yu and CFO Brett Whitmire at the center. Rather than pursuing scale for its own sake, Diodes is now prioritizing higher-value opportunities, including allocating capital toward selective M&A, scaling system-level solutions, and increasing its content per device. These shifts are aimed at driving top-line acceleration as well as margin expansion.
Despite a challenging macro backdrop, management remains constructive on demand trends, which Williams sees as supportive of the company’s growth outlook and margin recovery. Williams also noted a key evolution in Diodes’ market approach. The company is repositioning itself from a low-cost supplier to a value-added design partner. This move is already helping the company secure new design deals with industry leaders like NVIDIA and AMD. On the manufacturing front, the emphasis has shifted from capacity growth to developing higher-performance technologies and better cost discipline.
In the analyst’s view, these changes could sharpen Diodes’ competitive edge and set the stage for long-term upside, even in a more uncertain macro environment.
Diodes Inc. (NASDAQ:DIOD) delivers high-quality analog and discrete power semiconductor solutions to companies in the automotive, industrial, computing, consumer electronics, and communications markets.
9. Power Integrations Inc. (NASDAQ:POWI)
Year-to-Date Performance: -12.0%
Number of Hedge Fund Holders: 26
Power Integrations Inc. (NASDAQ:POWI) is one of the most oversold semiconductor stocks so far in 2025. Despite the stock’s pullback, Benchmark Company analyst David Williams reiterated a Buy rating and maintained his $70 price target on July 16, following his earlier commentary in May.
Williams’ stance reflects his confidence in the company’s operational footing and longer-term positioning. While the broader macro backdrop remains uneven, Power Integrations has shown consistency in its bookings and maintained lean inventory levels—both signs of disciplined execution amid industry-wide demand softness. The company’s latest quarterly results were broadly in line with expectations, supported by stronger gross margins and tight cost management.
The company is gaining good traction in the electric vehicle market, and that forms a key part of the analyst’s constructive view. Power Integrations is beginning to benefit from its investment in GaN technology, recently securing a notable design win in the EV space. According to Williams, this early success could signal a larger opportunity in automotive, as electrification trends continue.
Regarding the capital allocation strategy, the company continues to engage in share buybacks, supported by a solid balance sheet and strong cash flow generation. The analyst believes that the management’s ongoing repurchases suggest confidence in the long-term outlook.
Power Integrations Inc. (NASDAQ:POWI) is a semiconductor company that manufactures high-voltage integrated circuits for energy-efficient power conversion.
8. Semtech Corp. (NASDAQ:SMTC)
Year-to-Date Performance: -14.2%
Number of Hedge Fund Holders: 40
Semtech Corp. (NASDAQ:SMTC) is one of the most oversold semiconductor stocks so far in 2025. Stifel analyst Tore Svanberg raised his price target on Semtech to $54 from $45 on July 18 while maintaining a Buy rating. The update reflects a more constructive view on the semiconductor sector as inventory corrections that have weighed on the industry for the past two years appear to be nearing an end.
Svanberg believes the sector may now be in the early stages of a cyclical recovery, although he cautions that the pace of the rebound is still uncertain. His latest earnings preview implies that the macro environment is gradually improving, with signs that demand is starting to stabilize across several key end-markets.
AI remains a central part of Stifel’s investment thesis. Stifel analysts continue to recommend an Overweight position in semiconductors tied to the AI ecosystem. According to the report, the AI-focused group of companies under the firm’s coverage is projected to deliver median revenue growth of 32% in 2025 and 17% in 2026.
For Semtech specifically, the higher price target reflects not just an improving macro setup, but also company-specific drivers. While the near-term visibility remains somewhat limited, Semtech benefits from structural demand tied to AI, IoT, and data centre infrastructure.
Semtech Corp. (NASDAQ:SMTC) is a global supplier of high-performance analog and mixed-signal semiconductors, as well as advanced algorithms for infrastructure, high-end consumer, and industrial equipment.
7. Amkor Technology Inc. (NASDAQ:AMKR)
Year-to-Date Performance: -14.6%
Number of Hedge Fund Holders: 33
Amkor Technology Inc. (NASDAQ:AMKR) is one of the most oversold semiconductor stocks so far in 2025. On July 10, Goldman Sachs analyst James Schneider began coverage of Amkor Technology with a Neutral rating and a $20 price target, as part of a broader initiation on U.S. semiconductor capital equipment, storage, and foundry names.
The analyst categorizes the current industry environment as being in the mid-cycle, which for Amkor specifically translates into a relatively stable revenue outlook over the next 18–24 months. Schneider sees limited upside catalysts in the near term but does not foresee major downside risks either, suggesting a “wait and watch” approach is warranted for now.
From a geographic standpoint, he thinks that China appears more of an opportunity rather than a threat for companies in the semiconductor supply chain, including outsourced assembly and test providers like Amkor. While geopolitical uncertainties remain a factor, China could drive demand in areas such as consumer electronics and mobility, and thus could offer some tailwinds.
One area where Goldman does see upside for the industry is in storage, particularly with a potential NAND recovery into 2026. Although Amkor is not a pure-play on this segment, strength in memory and storage markets could indirectly benefit the company through increased packaging demand tied to those end-markets.
Amkor Technology Inc. (NASDAQ:AMKR) provides outsourced semiconductor packaging and test services.
6. Skyworks Solutions Inc. (NASDAQ:SWKS)
Year-to-Date Performance: -18.0%
Number of Hedge Fund Holders: 31
Skyworks Solutions Inc. (NASDAQ:SWKS) is one of the most oversold semiconductor stocks so far in 2025. Skyworks’ shares have lost around 21% in 2024, and their YTD decline took the loss to around 39% in the last one-year. The stock is one of the most unloved stocks by analysts in our list, with the majority of analysts having a Sell or Hold rating.
One of the analysts who recently gave a cautious outlook is UBS analyst Timothy Arcuri. On July 21, he raised his price target on Skyworks Solutions to $75 from $65, while maintaining a Neutral rating on the stock.
In his latest note, Arcuri pointed to signs that Q3 results should come in either in line with expectations or modestly better. His view is based on recent smartphone sell-through data, which suggests that some demand originally expected later in the year may have been pulled forward due to tariff-related factors.
UBS sees these early shipments, possibly driven by trade policy uncertainty, as a near-term boost to results, though it doesn’t necessarily signal a sustained improvement in end-demand trends. His Neutral stance essentially means that while the Q3 setup appears relatively stable, visibility beyond that remains limited, especially given the broader macro and trade backdrop affecting global handset markets.
Skyworks Solutions Inc. (NASDAQ:SWKS) is a wireless semiconductor company that designs and manufactures radio frequency and semiconductor system solutions for mobile communications applications.
5. FormFactor Inc. (NASDAQ:FORM)
Year-to-Date Performance: -19.1%
Number of Hedge Fund Holders: 24
FormFactor Inc. (NASDAQ:FORM) is one of the most oversold semiconductor stocks so far in 2025. The company has a strong foundation, with $764 million in revenue and $83 million in free cash flow in FY 2024. In the next few years, it aims to grow revenue to $850 million and expand margins through operating leverage, targeting $2.00 in adjusted EPS.
FormFactor is poised to benefit from several powerful secular trends, including the exponential growth in semiconductor content driven by AI, 5G, data center expansion, and advanced packaging, as well as the slowdown of Moore’s Law. It expects the revenue contribution from the Engineering Systems business to increase to 24% from 18% currently, through above-market growth. Meanwhile, the Probe Cards revenue contribution is expected to settle at around 75% in the next few years, down from 82%.
The company is also actively expanding its manufacturing footprint. In early June, it purchased a manufacturing site in Farmers Branch, Texas, for $55 million, giving it 50,000 square feet of clean room space. On the purchase, Mike Slessor, CEO of FormFactor, stated:
“As we’ve said for some time, we are seeing increased test intensity driven by the adoption of advanced packaging technologies, which is in turn driving increased demand for FormFactor’s probe-card products. This is evident in the recent rapid growth of our High Bandwidth Memory, or HBM, probe-card revenue, and we expect this advanced-packaging driven growth to continue. The purchase of this facility, for a competitive price, creates optionality for us in cost-effectively meeting this anticipated increasing long-term demand, and it will be an important step forward as we refine our operational strategy.”
Christian Schwab from Craig-Hallum continued to hold an optimistic view on the shares, maintaining his Buy rating (without assigning a price target) in a note published on June 26.
FormFactor Inc. (NASDAQ:FORM) is a provider of essential test and measurement technologies throughout the entire semiconductor product life cycle.
4. Impinj Inc. (NASDAQ:PI)
Year-to-Date Performance: -19.8%
Number of Hedge Fund Holders: 28
Impinj Inc. (NASDAQ:PI) is one of the most oversold semiconductor stocks so far in 2025. On July 23, a Piper Sandler analyst raised his price target on Impinj (NASDAQ:PI) to $140 from $100, while reiterating his Overweight rating on the stock. The move follows earnings commentary from another company, Avery Dennison (NYSE:AVY), which the analyst views as a constructive signal for Impinj’s positioning, particularly in newer verticals like food and logistics. Avery Dennison is a manufacturer and distributor of pressure-sensitive adhesive materials, apparel branding labels and tags, radio-frequency identification (RFID) inlays, and specialty medical products.
According to the analyst, Avery’s Q2 results and management commentary suggest that while retail sales in its intelligent labeling segment declined modestly year-over-year, the food and logistics categories posted mid-single-digit growth. This shift in end-market demand could benefit Impinj, which has been working to expand beyond its core retail exposure.
The analyst also highlighted that Avery noted that rollouts planned for 2025 remain on schedule, despite the noise surrounding tariffs. This indicates positive trends for Impinj’s enterprise platform strategy as it means that the broader adoption is progressing as expected.
A day earlier, on July 22, Susquehanna analyst Christopher Rolland also increased his price target on Impinj to $140 from $130, while maintaining a Buy rating on the stock. The update came as part of the analyst’s broader preview of the semiconductor sector heading into Q2 earnings. While Rolland expects Impinj’s Q2 results to be in line or slightly better than guidance, he also flagged growing uncertainty around the second half of 2025, with visibility becoming more limited.
Impinj Inc. (NASDAQ:PI) manufactures RFID devices and software, including RFID chips, RFID readers, RFID reader chips, RFID antennas, and software applications for encoding chips.
3. Teradyne Inc. (NASDAQ:TER)
Year-to-Date Performance: -24.7%
Number of Hedge Fund Holders: 49
Teradyne Inc. (NASDAQ:TER) is one of the most oversold semiconductor stocks so far in 2025. On July 21, UBS analyst Timothy Arcuri raised the price target on Teradyne (NASDAQ:TER) to $120 from $110, while maintaining a Buy rating ahead of the company’s Q2 earnings.
Despite some investor concern over the potential for another guidance cut, Arcuri expects Q2 results to come in line with expectations, and sees room for Q3 guidance to land slightly above current Street estimates. He doesn’t anticipate a material shift in the company’s tone on the call, noting that management is likely to maintain a cautious outlook, citing limited visibility and ongoing uncertainty related to tariffs.
That said, the analyst sees a bias toward upside for the second half of the year, even if management continues to guide conservatively. According to Arcuri, Teradyne’s setup in the back half looks incrementally more favourable than the current consensus suggests.
Teradyne Inc. (NASDAQ:TER) is a semiconductor company that designs, develops, and manufactures automated test equipment and advanced robotics systems.
2. Marvell Technology Inc. (NASDAQ:MRVL)
Year-to-Date Performance: -33.9%
Number of Hedge Fund Holders: 73
Marvell Technology Inc. (NASDAQ:MRVL) is one of the most oversold semiconductor stocks so far in 2025. The company held its ‘Custom AI Investor’ Event on June 17, where the management gave an update on its focused strategy. The company estimates its data center market total addressable market at $94 billion and is planning to expand its market share from less than 5% in 2023 to 20% by 2028.
As per the strategy laid out at the event, the company is well-positioned to capitalize on the accelerating demand for AI infrastructure, which is projected to reach $1.02 trillion by 2028, indicating a 20% CAGR in total data center capex. As of FY 2025, Marvell has grown its Cloud AI revenue to approximately $4.0 billion, with over 25% now derived from custom solutions. This is expected to surpass 50% in the longer term.
Following the event, a B. Riley analyst raised his price target on the stock to $115 from $110, while maintaining a Buy rating. The analyst highlighted the event as an encouraging signal for Marvell’s next phase of growth in AI and a clear inflection in demand.
Marvell Technology Inc. (NASDAQ:MRVL) is a fabless semiconductor company that develops high-performance chip solutions for data infrastructure, supporting everything from cloud data centers to 5G networks and enterprise storage.
1. Onto Innovation Inc. (NYSE:ONTO)
Year-to-Date Performance: -40.2%
Number of Hedge Fund Holders: 31
Onto Innovation Inc. (NYSE:ONTO) is one of the most oversold semiconductor stocks so far in 2025. On June 30, Benchmark Co. analyst Mark Miller reiterated a Buy rating on Onto Innovation, with an unchanged price target of $190. The key development behind this view is the company’s agreement to acquire Semilab International’s materials analysis business for about $545 million.
According to Miller, the deal will help Onto Innovation meaningfully. The acquisition brings in four high-growth product lines that complement the company’s existing portfolio and are expected to strengthen its position in the semiconductor metrology space.
Importantly, the deal also appears financially prudent as it is expected to be immediately accretive. Miller notes that the transaction should immediately enhance Onto’s gross and operating margins and lift adjusted EPS by more than 10% in the first year after closing (as per the company’s estimates). The acquisition is also expected to contribute around $130 million in additional annual revenue.
Onto Innovation Inc. (NYSE:ONTO) is a semiconductor equipment and process control company that provides advanced metrology, inspection, and data analytics solutions for chip manufacturing.
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