12 Best Performing Semiconductor Stocks to Invest In

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.

10. Power Integrations Inc. (NASDAQ:POWI)

6-Month Performance: 78.21%

Power Integrations Inc. (NASDAQ:POWI) is one of the best performing semiconductor stocks to invest in. On June 1, Power Integrations released ultra-slim, 15 W and 35 W auxiliary power supply reference designs optimized for the NVIDIA Kyber 800 VDC AI data center architecture. By using 1700 V-rated PowiGaN technology, these compact solutions reduce board space and bill of materials by 30 percent while maintaining at least 88 percent efficiency.

These designs integrate InnoMux-2 ICs to provide reliable power for internal data center components, such as gate drivers and MCUs. The use of single-HEMT 1700 V GaN technology allows for a highly efficient, space-saving alternative to bulky, discrete silicon carbide solutions, ensuring wide safety margins on 800 V buses.

By streamlining the design of liquid-cooled blade-rack systems, these reference modules simplify the development of high-density AI infrastructure. The technology provides engineers with a more reliable, efficient foundation for managing critical control functions within demanding, high-voltage data center environments.

Power Integrations Inc. (NASDAQ:POWI) provides analog and mixed-signal semiconductor solutions to original equipment manufacturers and distributors.

9. Allegro MicroSystems Inc. (NASDAQ:ALGM)

6-Month Performance: 79.08%

Allegro MicroSystems Inc. (NASDAQ:ALGM) is one of the best performing semiconductor stocks to invest in. On July 2, Allegro MicroSystems has introduced the A81415, the industry’s first ASIL-D-certified PMIC that integrates a wheel-speed sensor interface. Designed for electromechanical braking/EMB systems, this single-chip solution eliminates up to nine external components and unlocks over 50% more board space, helping automotive designers streamline brake-by-wire architectures while reducing bill-of-materials costs.

By consolidating power management and sensor decoding, the A81415 reduces latency in safety-critical loops and frees up MCU bandwidth for faster braking responses. The device is built to handle the rigorous demands of corner module electronics, offering a fail-operational foundation that is thermally robust and vibration-resistant, specifically tuned to support high-resolution sensing and clamping-force signals.

The A81415 provides a clear migration path for moving from 12V to 48V braking systems without requiring bulky external protection. By acting as a cohesive system for both sensing and power, it enables Tier 1 suppliers to develop simpler, more scalable foundations for next-generation software-defined vehicles, ensuring reliability where it is needed most at the wheel.

Allegro MicroSystems Inc. (NASDAQ:ALGM) develops and manufactures sensor integrated circuits and application-specific analog power ICs.

8. ​SiTime Corporation (NASDAQ:SITM)

6-Month Performance: 83.51%

​SiTime Corporation (NASDAQ:SITM) is one of the best performing semiconductor stocks to invest in. On July 1, SiTime finalized its acquisition of Renesas’ timing business, a move designed to establish the company as the premier provider of precision timing solutions. By increasing its clocking portfolio tenfold and expanding its reach in the AI data center market, SiTime expects to accelerate its path to $1 billion in annual revenue and improve its overall gross margins.

The acquisition secures a 30-year legacy of specialized clocking products that serve over 10,000 customers, with an anticipated revenue contribution of at least $300 million within the first year. This integration allows SiTime to broaden its offerings from oscillators to include clocks and resonators, solidifying its position as a default timing partner for major technology sectors.

Looking forward, the companies have established a strategic partnership to embed ​SiTime Corporation’s (NASDAQ:SITM) MEMS resonators into Renesas’ next-generation computing products. To support this ongoing collaboration, Renesas CEO Hidetoshi Shibata is expected to join SiTime’s Board of Directors, ensuring deeper alignment as they innovate for future intelligent devices.

​SiTime Corporation (NASDAQ:SITM) focuses on developing micro-electromechanical system-based silicon timing solutions that replace legacy quartz devices.

7. Himax Technologies Inc. (NASDAQ:HIMX)

6-Month Performance: 83.94%

Himax Technologies Inc. (NASDAQ:HIMX) is one of the best performing semiconductor stocks to invest in. On June 30, Himax launched its HE Series indirect Time-of-Flight (iToF) Depth Decoder ICs, designed to enhance 3D sensing for robotics, industrial automation, and AI vision. Using a hardware-based architecture, the series offers low-latency, high-precision processing that supports up to 240 fps, providing a more responsive alternative to traditional software-based solutions.

The new ICs include advanced image enhancement features like noise reduction and temporal filtering to maintain data accuracy in complex environments. By providing comprehensive SDKs and calibration tools, Himax Technologies Inc. (NASDAQ:HIMX) simplifies system integration for developers, allowing for faster time-to-market. The solution is already being implemented by partners like OFILM in advanced robotics applications.

The advanced HE-2 model features an integrated RGB ISP and an edge AI Neural Processing Unit/NPU, enabling features like eye tracking and gesture recognition. By consolidating perception, processing, and AI intelligence into a single platform, these ICs streamline architecture for developers building next-generation intelligent vision and AIoT systems.

Himax Technologies Inc. (NASDAQ:HIMX) is a semiconductor solution provider involved with display imaging processing technologies. The company’s operations are divided into the Driver Integrated Circuit and Non-Driver Products segments.

6. nLIGHT Inc. (NASDAQ:LASR)

6-Month Performance: 91.88%

nLIGHT Inc. (NASDAQ:LASR) is one of the best performing semiconductor stocks to invest in. On July 9, nLIGHT was selected for a Joint Laser Weapon System/JLWS agreement by the US Department of War to advance next-generation cruise missile defense. The contract includes an initial $44 million award with a total potential ceiling of $627 million, covering the development, integration, and eventual production of high-energy laser platforms.

The program aims to transition directed energy technology from prototypes to field-ready systems, initially targeting 150 kW and scaling to 300–500 kW for robust defense. These containerized laser weapons offer tactical advantages over kinetic systems, providing speed-of-light engagement and cost-effective defense against high-volume threats like UAS swarms and cruise missiles.

Utilizing its proprietary beam-combination and atmospheric correction technology, nLIGHT Inc. (NASDAQ:LASR) will deliver modular systems suitable for both land and maritime deployment. This contract uses an Other Transaction Authority agreement to facilitate rapid prototyping and accelerate the transition to large-scale production, supporting defense goals for operational deployments by 2028.

nLIGHT Inc. (NASDAQ:LASR) provides semiconductor and fiber lasers for aerospace and defense, microfabrication, and industrial applications. The company operates through the Laser Products and Advanced Development segments.

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