In this article, we will take a look at the 12 Best Semiconductor Equipment Stocks to Buy Right Now.
Artificial Intelligence’s technological requirements are driving a significant amount of investment and demand in the semiconductor industry. This is fueling the demand for the semiconductor equipment industry, as there is a need for new and advanced equipment to enhance chip production. According to McKinsey Global Institute, the semiconductor industry as a whole experienced a whopping economic profit growth, increasing from $38 billion in the 2008-09 period to $450 billion in the 2010-19 period. McKinsey sees semiconductors among the top industries poised to transform the future business landscape, with a projected value of between $1.7 trillion and $2.4 trillion by 2040.
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However, the recent tariff hurdles have been a growing concern for the semiconductor equipment manufacturers. Chip equipment makers are facing increasing risks in China as domestic rivals gain market share and demand trends start to shift. Barclays analyst Simon Cole expects China’s wafer front-end spending to drop 5% in 2025, followed by a 5% growth expected in 2026. However, the outlook is less supportive for Western suppliers.
“The addressable market for our coverage could decline 10-20% in 2025e and an additional 2-5% in 2026e, depending on export controls,” said Simon Coles.
Chinese manufacturers are focusing more on domestic tools instead of imported ones, with localization growing from mid-teens in 2023 to over 20% in 2024. Barclays noted that many Chinese semicap firms have announced a plethora of new tools coming to market. It will require some time to get verified and accepted, but within 1-2 years, Barclays anticipates Chinese local manufacturers to offer products that cover an even wider proportion of the market.
Export controls remain another major overhang for Western manufacturers. Barclays report notes that a quarter of China’s wafer front-end market could be localized in 2025, with 10% to 30% restricted, especially for the U.S. companies, more than for European or Japanese manufacturers. That leaves approximately 70% to 75% addressable market for Western players, a share Barclays expects to reduce further if restrictions widen.
“If export controls/entity lists are expanded, addressable wafer front-end in 2026e could decline >15% year-over-year – a very different outcome than what our 5% headline wafer front-end growth forecast suggests,” Barclays’ analysts noted.
The bank projects the U.S. addressable market could be 14% weaker in 2026 than industry forecasts, at $25 billion compared to $29 billion. China’s wafer front-end spending remains a key and more challenging picture for foreign suppliers.
With these market trends in mind, let’s turn to the 12 Best Semiconductor Equipment Stocks to Buy Right Now.
Our Methodology
To compile the list of 12 best semiconductor equipment stocks to buy right now, we shortlisted the semiconductor equipment companies from the Finviz screener. We then ranked these best semiconductor equipment stocks in ascending order of the number of hedge fund holders. The data for hedge funds is taken from Insider Monkey’s Hedge Fund database, updated as of Q2 2025.
Note: The data was recorded on August 29.
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).
12 Best Semiconductor Equipment Stocks to Buy Right Now
12. IPG Photonics Corp. (NASDAQ:IPGP)
Number of Hedge Fund Holders: 14
IPG Photonics Corp. (NASDAQ:IPGP) is one of the best semiconductor equipment stocks to buy right now. On August 27, IPG Photonics Corp. (NASDAQ:IPGP) reported that it will unveil the CROSSBOW MINI 3 kW high-energy laser system at Defence and Security Equipment International (DSEI) U.K.
IPG Photonics will reveal the new field-ready laser defence system for counter-UAS applications at DSEI U.K. from September 9 through September 12, 2025. The company’s CROSSBOW MINI is a patent-pending laser defence system that is engineered to counter the rising threat of unmanned aerial systems. The system is designed for immediate deployment and scalable integration, which marks IPG’s transformative leap in directed-energy defence.
IPG Photonics has successful field demonstrations, with 100 drones neutralized in realistic scenarios, including single and swarm attacks. CROSSBOW MINI is optimized to neutralize Group 1 and 2 drones with unmatched precision, and operate up to 12 hours on internal battery power, and for long missions with external power supplies.
Lockheed Martin has integrated the CROSSBOW MINI as the laser weapon system into its Sanctum C-UAS network.
“To address this need, Lockheed Martin developed the Sanctum C-UAS ecosystem with end-to-end capability to detect, track, identify, and defeat small UAS. Sanctum features a scalable, modular architecture, and these core design principles were proven during our recent integration with IPG’s CROSSBOW,” said Tyler Griffin, Lockheed Martin’s C-UAS Director.
IPG Photonics Corp. (NASDAQ:IPGP) designs and manufactures components used in its finished products, from semiconductor diodes to optical fiber preforms, finished lasers, and complementary products.
11. Photronics, Inc. (NASDAQ:PLAB)
Number of Hedge Fund Holders: 25
Photronics, Inc. (NASDAQ:PLAB) is one of the best semiconductor equipment stocks to buy right now. On August 28, D.A. Davidson reiterated a Buy rating on Photronics, Inc. (NASDAQ:PLAB), maintaining the price target of $30.
D.A. Davidson analyst Thomas Diffely kept the rating on PLAB following Q3 FY2025 results. The company posted $210 million in total revenue, surpassing the top end of expectations and remaining flat year-over-year. Photronics achieved adjusted EPS of $0.51, beating estimates by $0.13. The company’s cash flow represented 25% of revenue, contributing to a solid balance sheet with $576 million in cash and short-term investments.
Diffely remains positive on Photronics as the company reinvests in business expansion, leveraging its strong balance sheet. The company’s focus mainly remains in the U.S. and Asia to drive future revenue and earnings growth. During Q3, Photronics noted 14% year-over-year revenue growth in the flat panel display market, fueled by robust demand in Korea and China for advanced AMOLED technologies. For Q4, the company projects revenue of around $201 million and $209 million, while Wall Street, on average, expects revenue of $204.54 million.
Photronics, Inc. (NASDAQ:PLAB) is a leading manufacturer of photomasks, which are used to transfer circuit patterns onto semiconductor wafers and FPD substrates.
10. FormFactor, Inc. (NASDAQ:FORM)
Number of Hedge Fund Holders: 29
FormFactor, Inc. (NASDAQ:FORM) is one of the best semiconductor equipment stocks to buy right now. On August 21, Wells Fargo reiterated its Hold rating on FormFactor, Inc. (NASDAQ:FORM), without a price target on the stock.
Wells Fargo retains a hold rating on FORM following mixed Q2 FY2025 results. The company posted revenue of $195.8 million, exceeding the upper end of the estimates, but down 0.8% from a year ago. FormFactor anticipates Q3 revenue to be around $200 million plus/minus $5 million, in line with Wall Street estimates. The company is positioned well to enable innovations in advanced packaging and generative AI, which are gaining higher demand. FormFactor is also shipping in volume across all three major HBM manufacturers, diversifying its HBM demand portfolio.
Despite the company’s exciting results in Q2, CEO Mike Slessor acknowledged that recent financial results and especially gross margins have not reflected their unique market leadership position. Wells Fargo also retains the rating without a price target due to challenges faced in improving margins, mainly impacted by headwinds from tariffs and rising operational costs.
Since the Q2 earnings release on July 30, FormFactor shares have plunged over 17% as of August 29, while FormFactor, Inc.’s (NASDAQ:FORM) average price target of $32.50, based on analysts’ estimates, implies an upside of almost 11.34% from current levels.
FormFactor, Inc. (NASDAQ:FORM) offers key test and measurement technologies, including the full semiconductor product life cycle. The solutions range from characterization, modeling, reliability, and design debugging to qualification and product testing.
9. Axcelis Technologies Inc. (NASDAQ:ACLS)
Number of Hedge Fund Holders: 29
Axcelis Technologies Inc. (NASDAQ:ACLS) is one of the best semiconductor equipment stocks to buy right now. On August 27, Axcelis Technologies Inc. (NASDAQ:ACLS) announced that it participated in the KORUS Business Roundtable on August 25, 2025.
Axcelis Technologies’ participation at the event is a strategic move to strengthen its international presence and partnerships. The event brought together government and industry leaders to advance shared goals around collaboration, investment, and innovation. The U.S. Secretary of Commerce Howard Lutnick and South Korean President Lee Jae Myung took part in the conference.
“We recognize the important role that Axcelis’ strong international partnerships play in enabling us to deliver high-quality products, faster, at scale, and with greater resilience. With increased investments and innovation across the semiconductor industry, we look forward to building on our collaborative and long-standing relationship with our Korean customers and partners,” said Axcelis President and Chief Executive Officer Russell Low.
Axcelis Technologies continues to expand and work on collaborations to enhance its growing network. On August 20, Axcelis announced a Joint Development Program with GE Aerospace focused on the development of production-worthy 6.5 to 10kV superjunction power devices. Axcelis will power the process through its Purion XEmax high-energy implanter, which offers the industry’s highest beam currents over the widest energy range of up to 15MeV.
Axcelis Technologies Inc. (NASDAQ:ACLS) designs, manufactures, and services ion implantation and other processing equipment used in the fabrication of semiconductor chips.
8. ACM Research Inc. (NASDAQ:ACMR)
Number of Hedge Fund Holders: 33
ACM Research Inc. (NASDAQ:ACMR) is one of the best semiconductor equipment stocks to buy right now. On August 25, Goldman Sachs raised the price target on ACM Research Inc. (NASDAQ:ACMR) from $35.3 to $40.1, keeping a Buy rating on the stock.
Allen Chang from Goldman Sachs increased the price target on ACMR following the Q2 FY2025 results. ACM Research posted $215.4 million in revenue, up 6.4% year-over-year and achieving sequential growth of 25%, driven by repeat orders for its new Ultra C wb Wet Bench Cleaning Tool. The company is expanding its product portfolio with new platforms, including Track, PECVD, and panel leveling tools, which are expected to drive long-term growth.
Chang is optimistic about ACM Research as the company sees its long-term revenue target for China to grow to $2.5 billion, indicating confidence in market growth. The company has also reiterated its FY2025 guidance range of $850 million to $950 million.
As of August 29, ACM Research Inc.’s (NASDAQ:ACMR) average price target of $36, based on analysts’ estimates, implies an upside of nearly 27.57% from current levels.
ACM Research Inc. (NASDAQ:ACMR) develops, manufactures, and sells semiconductor process equipment for various businesses, including cleaning, electroplating, stress-free polishing, and wafer- and panel-level packaging tools, among others.
7. Amkor Technology Inc. (NASDAQ:AMKR)
Number of Hedge Fund Holders: 33
Amkor Technology Inc. (NASDAQ:AMKR) is one of the best semiconductor equipment stocks to buy right now. On August 28, Amkor Technology Inc. (NASDAQ:AMKR) announced revised plans for the location of its new semiconductor facility in Arizona.
Amkor is set to construct its new semiconductor advanced packaging and testing facility on a 104-acre site within the Peoria Innovation Core, in north Peoria, Arizona. Amkor will work with TSMC and other major semiconductor firms as part of Arizona’s growing semiconductor ecosystem. The company will focus on advanced, high-volume manufacturing for industries such as computing, communications, and automotive.
“As the largest advanced packaging company in the U.S., Amkor is proud to invest in U.S. semiconductor manufacturing and strengthen the U.S. semiconductor supply chain. This new site offers the flexibility to meet growing customer demand and reinforces our commitment to the U.S.-based chip manufacturing,” said Giel Rutten, Amkor’s president and CEO.
The Peoria City Council approved a land swap and a development agreement, allowing Amkor to exchange its previously nominated 56-acre parcel within the Five North at Vistancia community. Construction on the site is expected to begin soon, with production expected to start in early 2028.
Amkor Technology Inc. (NASDAQ:AMKR) offers outsourced semiconductor packaging and test services. The company designs and develops packaging and test technologies focused on advanced packaging solutions, including AI.
6. Ambarella Inc. (NASDAQ:AMBA)
Number of Hedge Fund Holders: 38
Ambarella Inc. (NASDAQ:AMBA) is one of the best semiconductor equipment stocks to buy right now. On August 29, Needham raised the price target on Ambarella Inc. (NASDAQ:AMBA) stock from $90 to $100, keeping its Buy rating.
Needham analyst Quinn Bolton increased the price target on AMBA following strong Q2 FY2026 results. The company posted $95.51 million, exceeding the estimates by $5.51 million and up 49.9% from a year ago. Bolton noted that Ambarella’s solid Q2 results indicate its two new design wins that showcase the diversity of its IoT segment. The company’s IoT business continues to expand outside of security cameras and is expected to be the key growth driver until a major automotive design win is approved.
Ambarella continues to experience strong demand for its 5 nm AISOCs, driving higher average selling prices. Bolton remains bullish on AMBA as the company has increased its FY2026 revenue growth outlook to a range $31 to 35%, or almost $379 million at mid-point, indicating record FY total revenue.
Ambarella Inc. (NASDAQ:AMBA) produces semiconductor solutions that enable AI processing, advanced image signal processing, and HD and ultra-HD compression.
5. Entegris Inc. (NASDAQ:ENTG)
Number of Hedge Fund Holders: 54
Entegris Inc. (NASDAQ:ENTG) is one of the best semiconductor equipment stocks to buy right now. On August 21, Entegris Inc. (NASDAQ:ENTG) announced $700 million in domestic research and development (R&D) spending over the next several years.
Entegris will invest in the domestic semiconductor market in collaboration with the Trump Administration. The company will invest to accelerate semiconductor innovation, while the investment will go into R&D projects and related capital expenditures. The investment will be split into two divisions, Materials Solutions and Advanced Purity Solutions.
“To support the industry’s growth, we have been creating a stronger and more resilient domestic semiconductor ecosystem in the U.S. These investments also allow for continued leadership in advanced materials solutions,” said Entegris president and CEO Dave Reeder.
Under this investment, Entegris will develop its Aurora, Illinois, location, which is strategically located between semiconductor hubs in New York, Ohio, Arizona, and Texas. This new facility will be a state-of-the-art U.S. Technology Center and will be a cornerstone to Entegris’ solutions. This investment follows the company’s previous commitment of $700 million to the development of a manufacturing center of excellence in Colorado Springs, Colorado.
Entegris Inc. (NASDAQ:ENTG) has soared just over 2% since the company announced a $700 million investment for the U.S. semiconductor centers.
Entegris Inc. (NASDAQ:ENTG) offers advanced materials and process solutions for the semiconductor and other high-technology industries. The company serves through two segments: Materials Solutions and Advanced Purity Solutions.
4. Teradyne, Inc. (NASDAQ:TER)
Number of Hedge Fund Holders: 60
Teradyne, Inc. (NASDAQ:TER) is one of the best semiconductor equipment stocks to buy right now. On August 25, Cantor Fitzgerald raised the price target on Teradyne, Inc. (NASDAQ:TER) from $105 to $130, keeping its Overweight rating on the stock.
C J Muse from Cantor Fitzgerald increased the price target following strong Q2 FY2025 earnings. Since the earnings release on July 29, TER shares have soared over 30%, outperforming the PHLX Semiconductor (SOX) index, which has plunged 1.23%, as of August 29. Muse believes there is still upside potential in the stock and describes it as a “catup-up” trade for TER.
The analyst sees Teradyne’s AI-related exposure as becoming increasingly interesting and well-positioned for growth in FY2026. The strength in semiconductor testing, especially for AI applications, positions the company well for future growth. During Q2, the semiconductor test contributed $492 million to total revenue. On August 26, Teradyne announced a quarterly cash dividend of $0.12 per share, payable on September 29, 2025.
Teradyne, Inc. (NASDAQ:TER) is a leading supplier of automated test systems and robotics products. The company operates through the Semiconductor Test and Robotics segments.
3. ASML Holding N.V. (NASDAQ:ASML)
Number of Hedge Fund Holders: 78
ASML Holding N.V. (NASDAQ:ASML) is one of the best semiconductor equipment stocks to buy right now. On August 26, Bernstein reaffirmed a Hold rating on ASML Holding N.V. (NASDAQ:ASML), keeping the price target at €640.
David Dai from Bernstein retains the rating on ASML, citing the company’s mixed guidance for 2026. During Q2 FY2025, the company posted revenue of $8.95 billion, exceeding estimates by $145 million, while the adjusted EPS of $6.86 surpassed consensus by $0.74. ASML continues to maintain its monopoly in state-of-the-art lithography systems, which indicates its dominant market position in advanced chipmaking equipment.
However, the company downgraded its 2026 outlook, which has raised concerns about its revenue growth prospects. ASML expects both revenue and profit growth to be lower in 2026 than in 2025. On the other hand, ASML expects net sales between €7.4 billion and €7.9 billion during Q3 FY2025, with a slightly lower gross margin of 50% to 52%. Dai retains a Hold rating considering these factors and the company’s potential concerns over EUV shipments.
ASML Holding N.V. (NASDAQ:ASML) is a leading designer and manufacturer of advanced semiconductor equipment. The company is the world’s largest supplier of advanced lithography systems and remains the sole provider of EUV lithography machines.
2. Applied Materials, Inc. (NASDAQ:AMAT)
Number of Hedge Fund Holders: 81
Applied Materials, Inc. (NASDAQ:AMAT) is one of the best semiconductor equipment stocks to buy right now. On August 27, Bernstein reiterated a Buy rating on Applied Materials, Inc. (NASDAQ:AMAT) stock, maintaining the price target at $195.
Qingyuan Lin from Bernstein remains positive on Applied Materials following the company’s record results from Q3 FY2025. The company achieved record revenue of $7.30 billion, exceeding the estimated $7.22 billion and up 8% year-over-year. Applied Materials continues to maintain its market leadership, especially in deposition processes critical for semiconductor wafer production. The company also posted record adjusted earnings per share of $2.48, indicating growth of 17% from a year ago.
On August 28, during the Deutsche Bank Technology Conference, Applied Materials CFO Brice Hill said that the government’s stake in Intel won’t change much. When asked whether the government incentives for chipmakers would boost Applied’s demand forecast, Hill said the changing landscape may shift where factories are built, but would not increase overall demand. He further added that higher competition could slightly lower average factor use, but not enough to change AMAT’s five-year forecast.
Applied Materials, Inc. (NASDAQ:AMAT) offers manufacturing equipment, software, and services to the semiconductor industry. The company operates through the Semiconductor Systems, Applied Global Services, and Display & Adjacent Markets segments.
1. Lam Research Corporation (NASDAQ:LRCX)
Number of Hedge Fund Holders: 85
Lam Research Corporation (NASDAQ:LRCX) is one of the best semiconductor equipment stocks to buy right now. On August 26, Bernstein raised the price target on Lam Research Corporation (NASDAQ:LRCX) from $95 to $105, keeping its Outperform rating on the stock.
Stacy Rasgon from Bernstein increased the price target on LRCX following strong Q4 FY2025 results. The company achieved $5.17 billion in revenue, exceeding estimates by $167.07 million, while the adjusted earnings came in at $1.33 per share, surpassing consensus by $0.12. Lam Research reported 50.3% gross margins, with a notable increase in cash reserves to $6.4 billion.
Rasgon pointed out that the company’s Q4 results were good due to China’s system strength. The company’s foundry sales were robust, rising nearly 23% from the previous quarter to $1.8 billion. The analyst said that NAND spending was also a key driver, with spending up 53% sequentially. Lam Research remains optimistic on its growth trajectory through 2026, backed by new products and a 23.7% revenue growth in FY2025. The company anticipates Q1 FY2026 revenue of around $5.20 billion plus/minus $300 million. After a strong end to FY2025, on August 28, Lam’s Board approved a 13% increase in its quarterly dividend, from $0.23 to $0.26 per share.
Lam Research Corporation (NASDAQ:LRCX) designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in the fabrication of integrated circuits (ICs).
While we acknowledge the potential of LRCX 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 LRCX and that has 100x upside potential, check out our report about this cheapest AI stock.
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