In this article, we will discuss the 12 Best Performing Semiconductor Stocks to Invest In.

On July 8, Anastasia Amoroso, Chief Investment Strategist at Partners Group, joined BNN Bloomberg to discuss the current volatility in the semiconductor sector and her broader, bullish outlook on the AI trade. Amoroso addressed the recent sell-off in chip stocks, sparked by a decline in Samsung despite the company reporting a 19-fold increase in profits. She explained that this market movement is not a reflection of disappointing fundamentals in memory chips, but rather a result of traders taking profits after a stratospheric run that saw the SOX index rise by 90% before the recent pullback. She noted that the semiconductor trade has become heavily leveraged, with significant margin debt accumulated in markets like Korea and Taiwan, making profit-taking a natural response. Despite this, she remained optimistic, arguing that the fundamental narrative of AI remains unchanged, with global adoption, monetization, and innovation (what she describes as a flywheel effect) all accelerating.

Amoroso explained that the semiconductor industry is undergoing an evolution as the bottleneck for AI infrastructure migrates. While the initial race focused on compute power for training AI models, the industry is now moving into the inference stage, where memory (including short-term, long-term, and high-bandwidth memory) has become critical for AI servers and data centers. She noted that current industry analysis suggests it will take 18 to 24 months to clear this memory shortage. Furthermore, because memory chip makers are increasingly signing long-term contracts with customers, she suggested that the space may be shifting from a traditionally cyclical sector into a long-term secular growth area, which could potentially warrant higher valuation multiples for these stocks.

Regarding the massive CapEx spending by hyperscalers, Amoroso acknowledged that potential roadblocks exist, such as scrutiny over free cash flow and widening credit spreads in debt markets. However, she believes investors are generally encouraged by evidence of monetization, pointing to cloud revenue growth of over 20% year-over-year and a cloud backlog reaching $1.5 trillion. She also notes that companies are successfully utilizing internal AI capabilities to optimize recommendation engines in e-commerce and digital advertising to drive sales and revenue.

Against this backdrop, let’s take a look at some of the best performing semiconductor stocks to invest in.

Our Methodology

We used screeners to identify stocks that have exhibited strong share price performance over the past 6 months (at least 50%), and limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.

Note: All data was sourced on July 10. 

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. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).

12 Best Performing Semiconductor Stocks to Invest In

12. ​Silicon Laboratories Inc. (NASDAQ:SLAB)

6-Month Performance: 51.04%

​Silicon Laboratories Inc. (NASDAQ:SLAB) is one of the best performing semiconductor stocks to invest in. On June 16, Silicon Labs successfully operated a 200-node Matter-over-Thread validation network within its Boston office. This project demonstrates that Matter technology is ready for large-scale, complex environments, moving beyond simple residential smart home use cases to support commercial buildings, multi-dwelling units, and industrial IoT applications.

The deployment proved the scalability and reliability of Matter under real-world conditions, including interference from active Wi-Fi and Bluetooth traffic. Key results included 100% commissioning success and consistent performance in multicast and unicast communications. These findings confirm that the technology can handle large-scale deployments without requiring specialized engineering.

This validation highlights ​Silicon Laboratories Inc.’s (NASDAQ:SLAB) use of the OpenThread Border Router and its proprietary Concurrent Multiprotocol technology. By allowing devices to support multiple wireless protocols simultaneously, the company helps manufacturers simplify transitions, manage large networks efficiently, and future-proof products as the Matter ecosystem continues to evolve.

​Silicon Laboratories Inc. (NASDAQ:SLAB) provides and develops analog-intensive and mixed-signal integrated circuits. It specializes in wireless development platforms and product portfolios for the Internet of Things, including Bluetooth, sub-GHz proprietary technologies, Wi-SUN, Thread, Wi-Fi, Zigbee, and Z-Wave.

11. Alpha & Omega Semiconductor Limited (NASDAQ:AOSL)

6-Month Performance: 70.88%

Alpha & Omega Semiconductor Limited (NASDAQ:AOSL) is one of the best performing semiconductor stocks to invest in. On July 7, Alpha & Omega Semiconductor introduced its AOPL66801 80V MOSFET, which uses a new AmpStack packaging technology in a half-bridge configuration. This innovation employs vertically stacked die technology to integrate high-side and low-side MOSFETs into a single DFN6x5 package, significantly increasing power density and saving PCB space compared to traditional two-package solutions.

The design features an optimized clip for the switch node and a Kelvin sense pin, both of which serve to minimize parasitic inductance and gate-voltage instability. By reducing phase-node voltage ringing and MOSFET stress during high-speed switching, the component achieves higher operational efficiency and improved system-level reliability for applications ranging from AI factories to power tools.

This new packaging technology offers a major advancement for designers aiming to maximize power density while maintaining robust performance. With a maximum junction temperature of 175 °C and enhanced switching stability, the AOPL66801 provides a streamlined, reliable solution that simplifies PCB layouts and supports the demanding requirements of next-generation power conversion systems.

Alpha & Omega Semiconductor Limited (NASDAQ:AOSL) is a designer, developer, and global supplier of a broad range of discrete power devices, wide bandgap power devices, power management ICs, and modules.