11 Best Semiconductor Penny Stocks to Buy According to Hedge Funds

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2. Magnachip Semiconductor Corporation (NYSE:MX)

Share Price: $3.95

Number of Hedge Fund Holders: 18

Magnachip Semiconductor Corporation (NYSE:MX) is one of the best semiconductor penny stocks to buy according to hedge funds. On May 12, Magnachip Semiconductor Corporation (NYSE:MX) shared its results for the first quarter of 2025.

The company reported its fourth quarter in a row with year-over-year growth from continuing operations. This performance was driven by strong design wins and momentum in Power Analog Solutions (PAS) and Power IC (PIC).

In the first quarter alone, Magnachip Semiconductor Corporation (NYSE:MX) released 27 new-generation PAS products. These products are fully qualified and are ready for commercial sampling. The company secured new design wins that span the Industrial, Automotive, Consumer, and Communication markets.

Magnachip Semiconductor Corporation (NYSE:MX) has plans to introduce over 40 new-generation PAS products in 2025, and about 55 more in 2026. Through these new products, the company expects to open new revenue opportunities and drive higher gross margins over time.

In Q1 2025, the company’s Power IC (PIC) business grew by 44.1% year-over-year. This growth was driven by strong performance in its TV-LED and OLED power IC products.

Looking ahead, Magnachip Semiconductor Corporation (NYSE:MX) remains cautious about geopolitical and macroeconomic uncertainties. However, the company forecasts both its PAS and PIC businesses to deliver sequential and year-over-year growth in the second quarter.

Magnachip Semiconductor Corporation (NYSE:MX) designs and manufactures analog and mixed-signal power semiconductor platform solutions for a range of applications, including industrial, automotive, communication, consumer, and computing.

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