In this article, we will discuss the 11 Best Semiconductor Stocks to Invest In Now.
The Semiconductor Industry Association (SIA) announced that global semiconductor sales came in at $82.5 billion during January 2026, reflecting a rise of 3.7% relative to the December 2025 total of $79.6 billion. This also reflects a growth of 46.1% compared to the January 2025 total of $56.5 billion.
After the broader semiconductor market saw the highest-ever sales total in 2025, the global chip market grew in January 2026, exceeding the results seen in December and surpassing the sales from January 2025 by a wide margin, added SIA’s President and CEO.
Notably, the sales in the Asia Pacific region and China mainly supported the YoY growth, with the global sales expected to touch ~$1 trillion in 2026. As per McKinsey, the computing and data storage vertical is projected to grow to $810 billion in 2030, from an estimated value of $350 billion in 2024, with the demand in the server segment, mainly for AI servers, making up for most of the increase.
The Wireless vertical is expected to grow by an estimated $150 billion through 2030, resulting in the total value of $350 billion.
Amidst such trends, let us now have a look at the 11 Best Semiconductor Stocks to Invest In Now.
A semiconductor. Photo by Tima Miroshnichenko on Pexels
Our Methodology
To list the 11 Best Semiconductor Stocks to Invest In Now, we used a screener to shortlist the stocks catering to the broader semiconductor space. Next, we chose the ones popular among hedge funds, as of Q4 2025.
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).
11 Best Semiconductor Stocks to Invest In Now
11. KLA Corporation (NASDAQ:KLAC)
KLA Corporation (NASDAQ:KLAC) is one of the Best Semiconductor Stocks to Invest In Now. On March 13, Oppenheimer lifted its price objective on the company’s stock to $1,900 from $1,800, while keeping an “Outperform” rating, as reported by The Fly. As per the firm, KLA Corporation (NASDAQ:KLAC)’s Investor Day was significantly more positive than the expectations, raising the near and long-term targets. The firm also noted that the company is among the highest-quality growth franchises in semicap.
In a different update, Jefferies analyst Blayne Curtis reduced the firm’s price objective on KLA Corporation (NASDAQ:KLAC)’s stock to $1,700 from $1,850, while keeping a “Buy” rating. As per the analyst, the firm is optimistic about the company’s improved near-term outlook. The targets for 2030 assume higher capital intensity and share. Therefore, the company can see the high-end of its long-term range to $26 billion in revenue and $84 in EPS.
KLA Corporation (NASDAQ:KLAC) is involved in the supply of process control and yield management solutions for the semiconductor and related nano-electronics industries.
10. Nova Ltd. (NASDAQ:NVMI)
Nova Ltd. (NASDAQ:NVMI) is one of the Best Semiconductor Stocks to Invest In Now. On March 11, Barclays analyst Tom O’Malley began coverage of the company’s stock with an “Overweight” rating and a price objective of $465. The analyst highlighted that with broader industry pivoting to more metrologically intensive technologies, Nova Ltd. (NASDAQ:NVMI) enjoys several growth avenues amid elevated levels of wafer fab equipment spending.
As per the firm, Nova Ltd. (NASDAQ:NVMI) has been addressing the front and back-end with the help of dimensional, chemical, and materials metrology. Notably, the company had earlier highlighted that Nova Ltd. (NASDAQ:NVMI)’s broad-based momentum, expansion of metrology portfolio, and several strategic qualifications of advanced metrology solutions strengthen its strategy and technology. Moving forward, the company remains well-placed to capitalize on the upward investment cycle.
In a different update, Evercore ISI lifted its price target on the company’s stock to $485 from $340, while keeping an “Outperform” rating after its beat & raise Q4 2025 report.
Nova Ltd. (NASDAQ:NVMI) provides metrology solutions for the semiconductor manufacturing industry, with its product portfolio including dimensional metrology, modeling & software, materials metrology, and chemical metrology.
9. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the Best Semiconductor Stocks to Invest In Now. On March 10, Haas Liu from Bank of America Securities reiterated a “Buy” rating on the company’s stock with a price objective of $470.00. The analyst’s rating is backed by factors that reflect resilient growth and earnings power.
While the monthly sales were seasonally softer, it was highlighted that they continue to track above the Q1 patterns. This momentum comes on the heels of strong demand in high-performance computing and AI chips, along with earlier-than-usual orders for consumer semiconductors.
Despite Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)’s margins being sensitive to the power prices because of energy-sourcing concerns and increased electricity costs, its operations will not encounter disruption. Its profitability drivers are intact. The analyst also noted the company’s technology leadership, anticipation of healthy revenue expansion, and improved margins.
Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM) is the world’s largest semiconductor foundry.
8. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the Best Semiconductor Stocks to Invest In Now. On March 15, RBC Capital maintained a “Sector Perform” rating and a price objective of $230 on the company’s stock. The company reiterated that MI450/Helios is on track, with Advanced Micro Devices, Inc. (NASDAQ:AMD) having strong conviction in OpenAI and Meta volume ramps in H2 2026, added the analyst.
In a different update, Advanced Micro Devices, Inc. (NASDAQ:AMD) and Celestica Inc. announced a strategic alliance, focusing on bringing a new “Helios” rack-scale AI platform to the market. As a result of this alliance, Advanced Micro Devices, Inc. (NASDAQ:AMD)’s computing leadership is being paired with Celestica’s knowledge in providing leading-edge networking switch technologies.
Notably, ‘Helios’ reflects a new blueprint for the AI infrastructure, which allows customers to deploy AI at scale. This is being done with the performance, efficiency, and flexibility needed for the next generation of workloads.
Advanced Micro Devices (NASDAQ:AMD) is a multinational semiconductor company that designs high-performance computing, graphics processing units, and visualization technologies.
7. Cohu, Inc. (NASDAQ:COHU)
Cohu, Inc. (NASDAQ:COHU) is one of the Best Semiconductor Stocks to Invest In Now. On March 18, Stifel analyst Brian Chin lifted the firm’s price objective on Cohu, Inc. (NASDAQ:COHU)’s stock to $34 from $32, while keeping a “Buy” rating. The analyst noted the company’s announcement, wherein a leading US semiconductor IDM (integrated device manufacturer) and foundry gave orders for multiple Eclipse platforms.
This is to support testing of high-performance compute AI processors. As a result, this highlights that Cohu, Inc. (NASDAQ:COHU)’s AI test-driven revenue continues to accelerate.
In a different update, on March 16, Evercore ISI began coverage of the company’s stock with an “Outperform” rating and a price objective of $35. As per the firm, a cyclical recovery in the broader auto-industrial market in 2026 and 2027, Cohu, Inc. (NASDAQ:COHU)’s expansion into AI/compute applications, and a cushion because of recurring revenue are expected to act as key drivers.
Cohu, Inc. (NASDAQ:COHU) is a California-based provider of semiconductor test equipment and services. Founded in 1947, the company also provides AI process control and analytics-based monitoring software.
6. Semtech Corporation (NASDAQ:SMTC)
Semtech Corporation (NASDAQ:SMTC) is one of the Best Semiconductor Stocks to Invest In Now. On March 17, Craig-Hallum analyst Anthony Stoss lifted the firm’s price objective on the company’s stock to $105 from $80, while keeping a “Buy” rating, as reported by The Fly.
As per the firm, investors can consider owning the company’s stock ahead of healthier data center growth, with LPO/TIA (Linear Pluggable Optics/Transimpedance Amplifier) and ACC (Active Copper Cable) ramps beginning to take shape.
Furthermore, the firm noted that Semtech Corporation (NASDAQ:SMTC) started initial shipments of LPO product and anticipates the initial 1.6T ACC shipments during the quarter ended April. It also noted that the management expects total data center revenues to grow over 50% in FY 2027.
In a separate release, Semtech Corporation (NASDAQ:SMTC) announced the acquisition of HieFo Corporation. This addition to the company’s portfolio of semiconductor solutions strengthens the US technology supply chains. Also, it adds new capacity as well as resiliency at a critical point in the broader AI infrastructure buildout.
While we acknowledge the potential of SMTC 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 SMTC and that has 100x upside potential, check out our report about the cheapest AI stock.
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