In this article, we will look at the 10 Must-Buy Semiconductor Stocks to Invest In Now.
On May 19, Ed Yardeni of Yardeni Research appeared on CNBC’s “Closing Bell” to talk about the stock and bond markets and the economic outlook.
He thinks that the bond market is calling for the Fed to hike interest rates in July, as his belief is that the reason bond yields have gone up is because of the perception that the Fed is behind the curve on inflation. The Fed has to clearly show that they are dropping their easing bias, which is what they had in their April meeting, and move to not just a Neutral bias but a tightening bias at the June meeting.
READ ALSO: 10 Semiconductor Stocks with Highest Upside Potential Right Now AND 15 Best Small Cap Stocks to Buy for 10x Potential.
After that, he believes they have to follow up and show that they are willing to raise rates and do it by 25 basis points. The two-year is now indicating that the Federal funds rate is too low, as the range is 3.5 to 3.75%, and the US two-year treasury is at 4.1%, and that is a pretty good leading indicator of what the Fed should do, and very often, it gets it right. Yardeni further stated that the Fed doesn’t really want to get behind the market, as being behind the market is very much being behind the curve, because the market is certainly looking at the CPI and PPI that just came out.
With these broader market trends in view, let’s look at the must-buy semiconductor stocks to invest in now.
Our Methodology
We used the Finviz stock screener to identify the best semiconductor stocks with strong analyst upside potential, and selected the top 10 that are most popular among hedge funds as of Q4 2025, using the hedge fund sentiment data from Insider Monkey’s database. The stocks are arranged in ascending order of hedge fund sentiment.
Note: All data was recorded on May 20.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10 Must-Buy Semiconductor Stocks to Invest In Now
10. Himax Technologies, Inc. (NASDAQ:HIMX)
Number of Hedge Fund Holders: 11
Himax Technologies, Inc. (NASDAQ:HIMX) is one of the top must-buy semiconductor stocks to invest in now. Baird lifted the price target on Himax Technologies, Inc. (NASDAQ:HIMX) to $30 from $10 on May 8, maintaining an Outperform rating on the shares. The rating update came after the company reported financial results for fiscal Q1 2025, reporting that EPS surpassed the guidance range and both revenue and GM came in at the high end of the guidance range.
Revenue for the quarter was $199.0 million, reflecting a slight sequential decline of 2.0%. GM for fiscal Q1 reached 30.4%, at the high end of guidance of flat to slightly down from 30.4% in the previous quarter. In addition, fiscal Q1 2026 after-tax profit was $8.0 million, or 4.6 cents per diluted ADS, surpassing the guidance range of 2.0 to 4.0 cents.
Management further reported that the company expects revenue to increase 10.0% to 13.0% QoQ in its fiscal Q2 2026 guidance, with gross margin expected to be around 32% and profit per diluted ADS to be 8.6 cents to 10.3 cents.
Himax Technologies, Inc. (NASDAQ:HIMX) is a semiconductor solution provider involved with display imaging processing technologies. The company’s operations are divided into the Driver Integrated Circuit and Non-Driver Products segments.
9. ASE Technology Holding Co., Ltd. (NYSE:ASX)
Number of Hedge Fund Holders: 18
ASE Technology Holding Co., Ltd. (NYSE:ASX) is one of the top must-buy semiconductor stocks to invest in now. ASE Technology Holding Co., Ltd. (NYSE:ASX) announced on May 8 a strategic collaboration with WUS Printed Circuit Co., Ltd. for the construction of a manufacturing facility in the Nanzih Technology Industrial Park, Kaohsiung. Management reported that the two companies plan to jointly deploy resources to expand advanced manufacturing capacity, reinforcing Taiwan’s critical position in the global semiconductor value chain. It further reported that the new facility will focus on advanced packaging processes, which include FOCoS and FCBGA technologies to serve the emerging AI, cloud computing, and autonomous driving applications, while also integrating automation and smart manufacturing processes.
Separately, ASE Technology Holding Co., Ltd. (NYSE:ASX) reported its unaudited consolidated financial results for fiscal Q1 2026 on April 29, reporting net revenues of NT$173,662 million for the quarter, up by 17.2% year-over-year and down by 2.4% sequentially. Management reported that net income attributable to shareholders of the parent for fiscal Q1 totaled NT$14,148 million, up from NT$7,554 million in fiscal Q1 2025 and down from NT$14,713 million in fiscal Q4 2025.
ASE Technology Holding Co., Ltd. (NYSE:ASX) provides semiconductor manufacturing services and is involved in the development and offering of complete turnkey solutions in IC (Integrated Circuit) packaging, front-end engineering testing, design and production of interconnect materials, wafer probing and final testing, as well as electronic manufacturing services.
