In this article, we will discuss: 11 Best Semiconductor Stocks with Huge Upside Potential.
Semiconductor stocks are shares of firms that manufacture or provide computer chips and microelectronic components. These chips drive modern technologies and electronics.
According to the Wall Street Journal, the U.S. government is debating a proposal that would mandate semiconductor companies to manufacture as many chips domestically as their clients import from abroad. Tariffs would be applied to businesses that were unable to sustain this 1:1 ratio over time. This action comes after President Donald Trump announced last month that his administration would impose around 100% tariffs on imported semiconductors, except for companies that currently produce in the United States or have committed to doing so. According to the Journal, Howard Lutnick, the Secretary of Commerce, has spoken with semiconductor entrepreneurs about the proposal and stressed that it might be necessary for “economic security.”
The initiative is intended to lessen reliance on foreign supply chains at a time when chip demand is increasing across industries. However, Reuters’ request for comment was not answered by the White House or the Commerce Department. Hence, it is unclear how the requirement and tariff enforcement will be carried out.
With that said, here are the 11 Best Semiconductor Stocks with Huge Upside Potential.
Our Methodology
For this article, we compiled an initial list of 11 Best Semiconductor Stocks. Then we selected the 13 stocks that had the highest upside potential as of September 12, 2025. We have only included stocks in our list with an upside potential of 13% or higher. The stocks are ranked in ascending order of upside potential. We have used the stock’s market cap as of September 22 as a tie-breaker in case two or more stocks have the same number of hedge funds invested.
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. Texas Instruments Incorporated (NASDAQ:TXN)
Analysts’ Upside Potential as of September 12: 13.14%
Market Cap as of September 22: $163.30 billion
Morgan Stanley reduced its price target for Texas Instruments Incorporated (NASDAQ:TXN) to $192 from $197 on September 12, maintaining an Underweight rating. The firm stated that the June quarter was “good overall” for analog semiconductor companies, but September-quarter outlooks “set a high bar” and outcomes “underwhelmed,” causing global analog equities to fall an average of 5% on earnings day.
The note pointed to a flat recovery slope at the end of the quarter, with more positive projections for the first half of 2026 and the December quarter. According to the analyst, restocking could result from historically low customer inventories, closing the present undershipping gap, and “offering potential upside to numbers.” Investors may need to wait for more definitive indications of continuous growth before sentiment toward Texas Instruments Incorporated (NASDAQ:TXN) and the larger analog semiconductor industry improves. Morgan Stanley’s cautious approach reflects short-term demand hurdles despite long-term prospects. It is one of the Stocks with Biggest Upside.
10. QUALCOMM Incorporated (NASDAQ:QCOM)
Analysts’ Upside Potential as of September 12: 13.14%
Market Cap as of September 22: $182.24 billion
QCraft has opened its European headquarters in Germany and partnered with QUALCOMM Incorporated (NASDAQ:QCOM) to expedite the implementation of next-generation intelligent driving solutions on the Snapdragon Ride™ platform.
Morningstar analysts predict that QUALCOMM Incorporated (NASDAQ:QCOM)’s licensing business (QTL) and chip business (QCT) will continue to generate strong cash flow, supporting the company’s narrow moat rating. This is projected to maintain the firm’s position as the market leader in 5G chipsets and intellectual property.
Apple’s move to replace QUALCOMM Incorporated (NASDAQ:QCOM) with its own baseband chips, or modems, will be a medium- to long-term obstacle but not a fatal blow. This is mainly due to the company being expected to expand in the automotive and Internet of Things semiconductor markets. The business has survived numerous government investigations and customer backlash in the licensing space. According to Morningstar analysts, QTL is expected to continue generating a steady flow of high-margin royalties in the future. It is among the Stocks with Biggest Upside.
9. NXP Semiconductors N.V. (NASDAQ:NXPI)
Analysts’ Upside Potential as of September 12: 14.39%
NXP Semiconductors N.V. (NASDAQ:NXPI) stated that its board had authorized an interim dividend of $1.014 per ordinary share for Q3 2025. The dividend will be paid in cash on October 8, 2025, to shareholders of record on September 17, 2025. The board expressed confidence in the company’s long-term growth and cash flow generation, as well as the stability of its capital structure.
NXP Semiconductors N.V. (NASDAQ:NXPI) operates in more than 30 countries and generated a revenue of $12.61 billion in 2024. The business provides solutions for the “Brighter Together” approach, which targets the automotive, industrial & IoT, mobile, and communications infrastructure markets. The dividend shows the firm’s focus on capital returns and conveys ongoing faith in its capacity to generate substantial cash flow. It is ranked ninth on our list of the Stocks with Biggest Upside.
