10 Overlooked Tech Stocks to Buy Now

3. United Microelectronics Corporation (NYSE:UMC)

P/E Ratio: 13.42

Hedge Fund Holders: 18

United Microelectronics Corporation (NYSE:UMC) is a global semiconductor foundry that provides integrated circuit manufacturing and backend services in areas such as mobile, IoT, computing, and automotive. As an underappreciated technology stock, United Microelectronics is gaining traction through controlled operations and smart expansion.

In the first quarter of 2025, United Microelectronics Corporation (NYSE:UMC) reported revenue of around $1.85 billion, a 5.9% increase over the previous year. Wafer shipments remained steady sequentially, but up 12% year-over-year, indicating strong demand. However, a one-time pricing adjustment at the beginning of the year, combined with a temporary disruption caused by an earthquake, weighed on results. Gross margin fell to 26.7%, while net income was around $250 million, or $0.02 per share. United Microelectronics Corporation (NYSE:UMC) has a robust financial position, with cash reserves of over $3.17 billion, which positions the company well for future investments and market changes.

Key growth areas include the company’s 22- and 28-nanometer systems, which currently account for 37% of overall revenue. The 22-nanometer category alone rose by 46% sequentially, owing to applications such as OLED display drivers and WiFi chips. United Microelectronics Corporation’s (NYSE:UMC) new Singapore Phase 3 factory is currently being expanded, and it is slated to begin volume production in early 2026. Management also emphasized increased consumer demand in geographically diverse manufacturing in the face of mounting global trade tensions.

United Microelectronics Corporation (NYSE:UMC) expects a 5% to 7% increase in wafer shipments in the second quarter, steady ASPs, and a gross margin recovery to about 30%, supporting a cautiously positive stance.