On July 10, the Semiconductor Industry Association (SIA) released its annual State of the US Semiconductor Industry report, which provides an overview of the industry in 2025.
Global semiconductor sales reached $630.5 billion in 2024, exceeding earlier predictions and reaching above $600 billion in annual sales for the first time. According to the World Semiconductor Trade Statistics, global semiconductor industry sales are projected to reach $701 billion in 2025, representing a growth of 11.2% compared to 2024.
This growth is expected to be driven by strong demand for advanced technologies like artificial intelligence, 5G and 6G communications, and autonomous vehicles. These trends are pushing the industry to expand global production capacity significantly.
The US has seen a major boost in semiconductor investments since 2020, thanks to crucial chip manufacturing incentives started during President Trump’s first term. As of July 2025, corporations in the semiconductor industry have announced more than $500 billion in private-sector investments. These investments could triple US chipmaking capacity by 2032.
Around the world, other governments have also provided hundreds of billions of dollars in financial incentives and a number of other support efforts to strengthen their domestic semiconductor sectors. This push reflects the importance of semiconductors in future technologies and economic strength.
With this background in mind, let’s take a look at the 11 best semiconductor penny stocks to buy according to hedge funds.
An automated manufacturing production line of semiconductor components on an assembly line.
Our Methodology
To compile our list of the 11 best semiconductor penny stocks to buy according to hedge funds, we used the Finviz stock screener to look for semiconductor stocks with a share price of under $5 as of July 16, 2025. We also reviewed our own rankings, financial media reports, and online resources to compile a list of the best penny stocks in the semiconductor industry. Next, we focused on the top 11 stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q1 2025 database of 1,000 elite hedge funds. Finally, the 11 best semiconductor penny stocks to buy were ranked in ascending order based on the number of hedge funds holding stakes in them as of Q1 2025.
Why do we care about what hedge funds do? 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 Semiconductor Penny Stocks to Buy According to Hedge Funds
11. SEALSQ Corp (NASDAQ:LAES)
Share Price: $3.59
Number of Hedge Fund Holders: 4
SEALSQ Corp (NASDAQ:LAES) is one of the best semiconductor penny stocks to buy according to hedge funds. On June 30, SEALSQ Corp (NASDAQ:LAES) announced that it completed a strategic investment by acquiring a 28.30% equity stake in WeCan Group SA, a Swiss company that specializes in blockchain and data compliance.
According to SEALSQ Corp (NASDAQ:LAES), this investment will help accelerate the development and deployment of blockchain-based security solutions for areas like financial services, IoT infrastructure, and Web 3.0 ecosystems.
WeCan Group SA and SEALSQ Corp (NASDAQ:LAES) will work together to combine their technologies and codevelop new solutions. The solutions will mix post-quantum cryptography, secure identity frameworks (KYC/KYB/KYO), and blockchain-powered platforms for compliance.
This deal brings together WeCan Group SA’s expertise in the financial compliance space and SEALSQ Corp’s (NASDAQ:LAES) hardware-based security to build quantum-safe technology for mission-critical sectors.
The two companies will work to add post-quantum security algorithms to SEALSQ Corp’s (NASDAQ:LAES) semiconductors. This will help protect billions of IoT devices from future quantum-based cyber threats.
SEALSQ Corp (NASDAQ:LAES) offers secure semiconductor chips, embedded firmware, and hardware provisioning services. The company focuses on post-quantum technology hardware and software solutions.
10. Amtech Systems, Inc. (NASDAQ:ASYS)
Share Price: $4.52
Number of Hedge Fund Holders: 5
Amtech Systems, Inc. (NASDAQ:ASYS) is one of the best semiconductor penny stocks to buy according to hedge funds. On May 12, Amtech Systems, Inc. (NASDAQ:ASYS) announced its results for the second quarter of fiscal year 2025, which ended on March 31, 2025.
The company’s revenue and adjusted EBITDA for the quarter came in below guidance and failed to meet expectations. This was primarily because of the delayed shipment of a horizontal diffusion furnace. Additionally, the extended downturn for capital equipment serving Amtech Systems, Inc.’s (NASDAQ:ASYS) mature node semiconductor customers led to non-cash impairments and inventory write-downs. The company ended the quarter with a slightly higher cash balance as these were non-cash items.
Despite these short-term challenges in the mature node market, Amtech Systems, Inc. (NASDAQ:ASYS) is seeing strong demand trends in back-end semiconductor markets. Demand for the company’s advanced packaging equipment, especially those supporting AI applications, remains strong.
In the second quarter of fiscal year 2025, bookings for this product line surpassed the total bookings for all of fiscal year 2024. Amtech Systems, Inc. (NASDAQ:ASYS) explained that this strong momentum is supported by secular investments in AI infrastructure, which provides a boost to the company’s advanced packaging equipment sales.
Amtech Systems, Inc. (NASDAQ:ASYS) is a global supplier of semiconductor equipment, consumables, and services for semiconductor wafer fabrication and device packaging.
