Earlier on June 6, Stacy Rasgon of Bernstein joined ‘Closing Bell’ on CNBC to suggest that the semiconductor sector is showing signs of a cyclical bottom. He also noted that the non-AI semiconductor business is already at a cyclical low, with street expectations modeling very little growth for it, suggesting a conservative baseline. The overall semiconductor market has seen a significant resurgence. Rasgon attributed this recovery to the postponement of tariffs. Also, there are indications that the broader semiconductor market might be entering a recovery phase, but Rasgon did question whether this might be a tariff-related pull forward. He noted that many companies, particularly in the analog space, are discussing recovery. Additionally, the AI trade is back on after a period of decline around Liberation Day.
The renewed interest in AI is a major driver of current semiconductor performance. Rasgon firmly believes the AI trade is real and has strong demand. While he acknowledged that the broad-based demand recovery needs further observation in the second half of the year, he concluded that the near-term outlook for the semiconductor market appears pretty good.
That being said, we’re here with a list of the 11 best performing semiconductor stocks to buy now.
Our Methodology
We used the Finviz stock screener to compile a list of the 11 best-performing semiconductor stocks with the highest year-to-date performance (more than 25%), as of July 28. We narrowed down our selection to stocks with most hedge fund ownership. The stocks are ranked in ascending order of their year-to-date performance. We’ve also added the hedge fund sentiment for each stock, as of Q1 2025, which was sourced from Insider Monkey’s database.
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).
11 Best Performing Semiconductor Stocks to Buy Now
11. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 158
Year-to-Date Performance as of July 28: 25.90%
Broadcom Inc. (NASDAQ:AVGO) is one of the best performing semiconductor stocks to buy now. On July 15, Mizuho increased its price target for Broadcom to $320 from $315, while maintaining an Outperform rating. The adjustment showed updated semiconductor estimates following the Trump administration’s decision to allow Nvidia Corp. (NASDAQ:NVDA) and other AI accelerator providers to resume AI graphics processing unit shipments to China.
This policy change is seen as a positive for US companies re-entering China’s $50 billion market. In Q2 2025, Broadcom reported a record total revenue of $15 billion, which was a 20% increase year-over-year. Semiconductor revenue in particular was $8.4 billion, which increased by 17% year-over-year, with AI semiconductor revenue specifically exceeding $4.4 billion, a 46% increase.
Infrastructure software revenue also grew by 25% to $6.6 billion, largely attributed to the successful integration of VMware and robust VCF sales. However, non-AI semiconductor revenue saw a 5% year-over-year decline, with specific downturns in the industrial and wireless sectors. Broadcom anticipates a sequential decline in consolidated gross margin by ~1.3% in Q3 due to a higher mix of XPUs.
Broadcom Inc. (NASDAQ:AVGO) designs, develops, and supplies various semiconductor devices and infrastructure software solutions worldwide.
10. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 212
Year-to-Date Performance as of July 28: 30.28%
NVIDIA Corporation (NASDAQ:NVDA) is one of the best performing semiconductor stocks to buy now. On July 28, MicroVision Inc. (NASDAQ:MVIS) announced that its MOVIA lidar system now integrates with the NVIDIA DRIVE AGX platform. This integration enables automotive customers to use MicroVision’s perception-enhanced lidar solutions.
The NVIDIA DRIVE AGX platform is an AI computing system designed for autonomous driving for AI-powered vehicles. MicroVision’s CTO, Glen DeVos, stated that this compatibility provides automotive OEMs and partners with robust point cloud data already processed by the MOVIA sensor’s internal perception compute.
The MOVIA L sensor is a fully industrialized, solid-state solution specifically designed for commercial trucking. Additionally, the MOVIA S sensor is expected to deliver high performance at a very competitive price, which makes it suitable for the high volumes of the automotive industry.
NVIDIA Corporation (NASDAQ:NVDA) is a computing infrastructure company that provides graphics and compute & networking solutions internationally.
MicroVision Inc. (NASDAQ:MVIS) develops and commercializes perception solutions for autonomy and mobility applications.
9. Micron Technology Inc. (NASDAQ:MU)
Number of Hedge Fund Holders: 96
Year-to-Date Performance as of July 28: 31.26%
Micron Technology Inc. (NASDAQ:MU) is one of the best performing semiconductor stocks to buy now. On July 23, KGI Securities downgraded Micron Technology from an Outperform to a Neutral rating and set a new price target of $95 for the stock. This revised stance showed an updated perspective on the company’s market position and prospects.
DRAM revenue specifically reached $7.1 billion in FQ3 2025, which was up 51% year-over-year and accounted for 76% of total revenue. NAND revenue was $2.2 billion, up 4% year-over-year, representing 23% of total revenue. In FQ3, the company made a total revenue of $9.3 billion.
Micron ended the quarter with $12.2 billion in cash and investments and $15.5 billion in debt, with a weighted average debt maturity of 2032. In Q3, data center revenue more than doubled year-over-year and reached a new record, while Micron became the number two brand in data center SSDs by market share for the first time in calendar Q1.
Micron Technology Inc. (NASDAQ:MU) designs, develops, manufactures, and sells memory and storage products internationally.
8. Credo Technology Group Holding Ltd. (NASDAQ:CRDO)
Number of Hedge Fund Holders: 41
Year-to-Date Performance as of July 28: 31.95%
Credo Technology Group Holding Ltd. (NASDAQ:CRDO) is one of the best performing semiconductor stocks to buy now. On July 22, Susquehanna raised its price target for Credo Technology from $90 to $115, while maintaining a Positive rating on the shares. The adjustment was part of Susquehanna’s Q2 semiconductor sector preview, in which the firm expects that companies like Credo will report in-line to modestly positive results.
The performance is expected to be driven by a combination of tariff-related demand pull-ins and sustained strength in AI applications. However, Susquehanna noted that the outlook for the latter half of the year remains uncertain. In FQ4 2025, Credo Technology reported quarterly revenue of $170 million, which marked a 26% sequential increase and a 180% year-over-year growth.
For the full fiscal year 2025, revenue reached $437 million, which was a 126% year-over-year growth. The company ended the quarter with $431.3 million in cash and equivalents and $90 million in inventory. The company has also successfully diversified its customer base, with 3 hyperscalers each contributing over 10% of total revenue.
Credo Technology Group Holding Ltd. (NASDAQ:CRDO) provides various high-speed connectivity solutions for optical & electrical Ethernet and PCIe applications internationally.
7. Arm Holdings (NASDAQ:ARM)
Number of Hedge Fund Holders: 42
Year-to-Date Performance as of July 28: 32.83%
Arm Holdings (NASDAQ:ARM) is one of the best performing semiconductor stocks to buy now. Morgan Stanley analyst Lee Simpson raised the firm’s price target on Arm to $194 from $150, while maintaining an Overweight rating on the shares. The adjustment came as a potential shift towards chip manufacturing by Arm is gaining investor interest, viewed by Simpson as transformative.
Arm Holdings’ revenue surged by 34% year-over-year to $1.24 billion in FQ4 2025 and marked the first time quarterly revenue surpassed the $1 billion mark. This performance was driven by record royalty revenue of $607 million, which was up 18% year-over-year. Arm’s Annualized Contract Value/ACV grew 15% to $1.37 billion, although Remaining Performance Obligations/RPO saw a 10% decrease to $2.23 billion.
The FQ4 performance was largely attributed to the growing adoption of Armv9 and Compute Subsystems/CSS platforms across various sectors, such as smartphones, cloud infrastructure, and automotive systems. Armv9-based cores now contribute over 30% of royalty revenue, up from ~25% in previous quarters.
Arm Holdings (NASDAQ:ARM) architects, develops, and licenses central processing unit products and related technologies for semiconductor companies and OEMs.
6. Silicon Motion Technology Corporation (NASDAQ:SIMO)
Number of Hedge Fund Holders: 32
Year-to-Date Performance as of July 28: 36.37%
Silicon Motion Technology Corporation (NASDAQ:SIMO) is one of the best performing semiconductor stocks to buy now. On July 23, Susquehanna analyst Mehdi Hosseini increased the firm’s price target on Silicon Motion to $90 from $80, while maintaining a Positive rating on the shares. The adjustment showed Susquehanna’s updated forecasts.
While the estimates for H2 2025 remain below consensus due to expected sub-seasonal trends in the core business, the projections for 2026 are more optimistic. Silicon Motion Technology reported revenue of $166.5 million in Q1 2025, which is a sequential decrease of 12.9%. At the end of Q1, cash and cash equivalents totaled $331.7 million.
The company is benefiting from increased controller outsourcing by NAND flash maker customers and has secured design wins, including with NVIDIA’s BlueField-3 DPU platform. However, sales decreased sequentially in Q1 due to weak end-user demand for PCs and smartphones.
Silicon Motion Technology Corporation (NASDAQ:SIMO) designs, develops, and markets NAND flash controllers for solid-state storage devices and related devices internationally.
5. Allegro MicroSystems Inc. (NASDAQ:ALGM)
Number of Hedge Fund Holders: 30
Year-to-Date Performance as of July 28: 39.06%
Allegro MicroSystems Inc. (NASDAQ:ALGM) is one of the best performing semiconductor stocks to buy now. Wells Fargo analyst Joe Quatrochi raised the firm’s price target on Allegro MicroSystems to $42 from $33, while maintaining an Overweight rating. Despite being positive on Allegro’s long-term prospects, Wells Fargo expressed caution ahead of the company’s FQ1 2026 earnings, expected after market close on July 31.
Allegro MicroSystems reported revenue of $193 million for FQ4 2025, which exceeded the high end of the company’s guidance. Automotive sales increased 8% sequentially in FQ4, and industrial and other sales increased 9% sequentially. For the full fiscal year 2025, revenue was $725 million, representing a 31% year-over-year decline.
In FQ4, cash flow from operations was $20 million, and free cash flow was $15 million. At the end of FQ4, Allegro had $131 million in cash and $345 million in debt. The company demonstrated accelerated innovation, releasing 50% more products compared to its IPO year, and targeting a $12 billion market opportunity. Allegro also secured new TMR wins in the biomedical market and a new automotive win in an XEV thermal management application.
Allegro MicroSystems Inc. (NASDAQ:ALGM) designs, develops, manufactures, and markets sensor integrated circuits/ICs and application-specific power ICs for motion control and energy-efficient systems.
4. Advanced Micro Devices Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 97
Year-to-Date Performance as of July 28: 43.82%
Advanced Micro Devices Inc. (NASDAQ:AMD) is one of the best performing semiconductor stocks to buy now. On July 28, UBS raised its price target for AMD to $210 from $150, while maintaining a Buy rating on the shares. The firm expects AMD’s Q2 results to show an upside bias due to strong performance in its PC and server segments.
In Q1 2025, AMD announced $7.4 billion in revenue, which was a 36% increase year-over-year. Dr. Lisa Su, AMD’s Chair and CEO, highlighted the outstanding start to 2025 and noted that year-over-year growth accelerated for the fourth consecutive quarter, fueled by strong core businesses and growing data center and AI momentum.
The Data Center segment made a revenue of $3.7 billion, which was up 57% increase due to sales of AMD EPYC CPU and AMD Instinct GPU. The Client and Gaming segment made $2.9 billion in revenue, which was up 28%.
Advanced Micro Devices Inc. (NASDAQ:AMD) is a semiconductor company that operates through three segments: Data Center, Client and Gaming, and Embedded.
3. nLIGHT Inc. (NASDAQ:LASR)
Number of Hedge Fund Holders: 17
Year-to-Date Performance as of July 28: 59.07%
nLIGHT Inc. (NASDAQ:LASR) is one of the best performing semiconductor stocks to buy now. Earlier on June 26, Craig-Hallum increased its price target for nLight to $24 from $14, while maintaining a Buy rating on the shares. The decision came from the firm’s heightened confidence in nLight’s growth outlook and cited a favorable global environment for defense spending.
In Q1 2025, nLight made $51.7 million in quarterly revenue, which was a 16% year-over-year increase compared to $44.5 million in the first quarter of 2024. Defense revenue alone reached a record high of $32.7 million, which made up 63% of total sales due to a 150% year-over-year growth in defense product sales.
The company’s high-power laser technology is strategically aligned with critical Department of Defense priorities in the aerospace and defense (A&D) market, including the Israeli Iron Beam program. nLight anticipates its A&D revenue to grow by at least 25% in 2025, which was supported by strong performance in directed energy and laser sensing markets.
nLIGHT Inc. (NASDAQ:LASR) designs, develops, manufactures, and sells semiconductor and fiber lasers for industrial, microfabrication, and aerospace and defense applications.
2. Navitas Semiconductor Corporation (NASDAQ:NVTS)
Number of Hedge Fund Holders: 11
Year-to-Date Performance as of July 28: 139.12%
Navitas Semiconductor Corporation (NASDAQ:NVTS) is one of the best performing semiconductor stocks to buy now. On July 1, Navitas Semiconductor announced a partnership with Powerchip Semiconductor Manufacturing Corporation (PSMC or Powerchip) to initiate and further develop 200mm GaN-on-silicon production.
This next-phase strategy supports Navitas’ supply chain, drives innovation, and enhances cost efficiency. This then supports the adoption of GaN in applications like AI data centers, EVs, solar energy systems, and home appliances.
Navitas’ GaN IC portfolio is expected to use Powerchip’s 200mm Fab 8B, situated in Zhunan Science Park, Taiwan. This facility has been operational since 2019 and is capable of high-volume manufacturing processes for GaN devices, ranging from micro-LEDs to RF GaN devices. Powerchip’s capabilities include an improved 180nm CMOS process, which offers smaller and more advanced geometries.
Navitas Semiconductor Corporation (NASDAQ:NVTS) designs, develops, and markets power semiconductors internationally.
1. Aeluma Inc. (NASDAQ:ALMU)
Number of Hedge Fund Holders: 1
Year-to-Date Performance as of July 28: 205.88%
Aeluma Inc. (NASDAQ:ALMU) is one of the best performing semiconductor stocks to buy now. As May concluded, Aeluma, in collaboration with Thorlabs, which is a vertically integrated photonics products manufacturer, announced an advancement in silicon photonics. This breakthrough has the potential to accelerate the commercial adoption of quantum computing and communication.
Silicon photonics is a promising technology for quantum computing and communication, and Aeluma enhances this by incorporating quantum dot sources and highly nonlinear electro-optic materials.
With support from the Office of the Secretary of Defense, Aeluma and Thorlabs showed the wafer-scale integration of aluminum gallium arsenide (AlGaAs), which is a nonlinear optical material, onto standard 200mm diameter CMOS silicon photonics wafers. This provides a viable pathway for scaling complex quantum photonic circuits.
Aeluma Inc. (NASDAQ:ALMU) develops optoelectronic and electronic devices in the US. The company manufactures semiconductor materials and chips using compound semiconductors on diameter substrates that are used to manufacture mass market microelectronics.
While we acknowledge the potential of ALMU to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ALMU and that has 100x upside potential, check out our report about this cheapest AI stock.
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