Global semiconductor sales are picking up real steam, and it’s starting to feel like the industry is firmly back on an upward track. In April 2025, chip sales reached $57 billion, according to the Semiconductor Industry Association, a solid 2.5% increase from March and a massive 22.7% jump compared to April last year. It’s the first month this year to show sequential growth, and that’s no small detail. It signals not just a rebound, but a broader resurgence driven by rising demand across several high-growth sectors, especially artificial intelligence, cloud computing, and next-gen consumer tech.
The rebound isn’t isolated to one part of the world, either. Sales in the Americas surged by more than 44% year-over-year, Asia-Pacific saw a 23% gain, and even China, despite geopolitical headwinds, posted a 14.4% increase. Supply chains are stabilizing, capital spending is ramping up, and new product cycles are breathing fresh life into the market.
All of these points to one thing: the semiconductor sector is entering a new phase of growth. And within this broader rally, some companies are emerging as clear winners, poised to benefit the most from rising global demand and a renewed wave of innovation.
Our Methodology
To identify the 10 must-buy semiconductor stocks, we started by exploring the broader universe of companies in the semiconductor sector. We analyzed our internal rankings, reviewed insights from financial media and examined relevant ETFs to narrow down the list. From there, we focused on the stocks most favored by institutional investors. We used hedge fund sentiment data from Insider Monkey’s Q1 2025 database, which tracks the holdings of 1,000 top-tier hedge funds. Finally, we ranked the 10 selected stocks in ascending order based on how many hedge funds held positions in each as of Q1 2025
Note: All data was recorded on July 25, 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Must-Buy Semiconductor Stocks to Invest in
10. GlobalFoundries Inc. (NASDAQ:GFS)
Number of Hedge Fund Holders: 31
GlobalFoundries Inc. (NASDAQ:GFS) is one of the must-buy semiconductor stocks to invest in. GlobalFoundries Inc. (NASDAQ:GFS) has announced its plan to acquire MIPS, a move aimed at significantly boosting its AI and computing capabilities. This acquisition marks a strategic step for GlobalFoundries as it seeks to expand its technology portfolio and better position itself in the rapidly evolving semiconductor landscape. By integrating MIPS’ advanced processor architecture, GlobalFoundries aims to enhance its ability to deliver high-performance solutions tailored to AI workloads and next-generation computing demands.
MIPS, known for its RISC-based CPU designs, brings decades of innovation and a strong intellectual property portfolio to the table. This deal is expected to accelerate GlobalFoundries’ development of energy-efficient, scalable processors, addressing the growing need for specialized chips in data centers, edge computing, and AI applications. As demand for AI-driven hardware intensifies, semiconductor manufacturers are racing to offer more powerful and efficient solutions, and this acquisition aligns with that trend.
Industry observers see this move as part of a broader shift, where foundries are not just manufacturing centers but also active participants in chip design and innovation. With MIPS’ expertise, GlobalFoundries is poised to strengthen its competitive edge, opening new avenues for growth and collaboration. The acquisition underscores GlobalFoundries’ commitment to investing in technology that meets the rising computational demands of the future.
9. MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI)
Number of Hedge Fund Holders: 36
MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) is one of the must-buy semiconductor stocks to invest in. Macom Technology Solutions Holdings, Inc. (NASDAQ: MTSI) received a fresh vote of confidence from Stifel, which raised its price target on the stock to $155 from $140 while reiterating a Buy rating. Based on the current market price of $137.10, the new target implies an upside of approximately 13%. Stifel’s updated view reflects growing optimism that the protracted inventory correction across the semiconductor sector may have finally reached its end, setting the stage for a broader cyclical rebound, even if the timing and strength of that recovery remain difficult to predict.
In its note, the firm highlighted its preference for semiconductor companies with direct exposure to AI infrastructure, where demand trends continue to outpace the rest of the market. Macom, with its focus on high-performance analog RF, microwave, and photonic semiconductors, stands to benefit from increased investment in data center and 5G infrastructure, both of which are deeply tied to the AI buildout.
While Stifel stopped short of forecasting a sharp near-term rebound, it pointed to expected median revenue growth of 32% in 2025 and 17% in 2026 for AI-oriented chipmakers under its coverage. For investors eyeing high-quality plays on secular growth in connectivity and AI, Macom remains firmly on the radar.
