In this article, we will look at the 12 High Growth Semiconductor Stocks to Buy Now.
On June 25, Vivek Arya, Senior Semiconductor Analyst at Bank of America Securities, appeared on a CNBC Television interview to discuss the state of the chip sector. The semiconductor sector came back into the spotlight after Micron posted record-breaking results for fiscal Q3 2026, following which the stock surged roughly 17% to a record high. Arya noted that we are witnessing a structural, rather than cyclical, shift in the memory industry. He added that the memory sector is critical to AI, and in fact, there is no AI without memory chips. Moreover, it is substantially more difficult to manufacture memory chips for AI as compared to conventional purpose chips.
Arya believes that, in addition to the structural shift, memory stocks, including Micron, are also benefiting from disciplined pricing and a strong free cash flow generation trend. He added that although the semiconductor and memory sector has had high and low cycles previously, this cycle appears to be more durable due to strong free cash flow generation, memory becoming increasingly more important for AI, and companies providing visibility over the long term.
With that, let’s take a look at the 12 High Growth Semiconductor Stocks to Buy Now.
Our Methodology
To curate the list of 12 High Growth Semiconductor Stocks to Buy Now, we used screeners to identify stocks with market caps over $2 billion and expected EPS growth of at least 30% over the next 5 years. These stocks are also popular among analysts and elite hedge funds. The list is ranked in ascending order of the number of hedge fund holders, sourced from Insider Monkey’s database.
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 High Growth Semiconductor Stocks to Buy Now
12. Ichor Holdings, Ltd. (NASDAQ:ICHR)
EPS Growth Next 5 Years: 67.46%
Number of Hedge Fund Holders: 32
Ichor Holdings, Ltd. (NASDAQ:ICHR) is one of the High Growth Semiconductor Stocks to Buy Now. Ichor Holdings, Ltd. (NASDAQ:ICHR) has gained more than 22.8% over the past month and is now trading near an all-time high. Wall Street is bullish on the stock, with 86% of the 7 analysts covering the stock maintaining a Buy rating.
Recently, on June 18, B. Riley raised the price target on Ichor from $90 to $125, while maintaining a Buy rating on the shares. The firm noted that they remain bullish on the stock ahead of July. The market expects positive memory-sector catalysts to emerge in late July. B. Riley noted that one of the key factors backing the positive sentiment is the company’s two major clients, including Applied Materials and Lam Research. Both are seen as key beneficiaries of continued investment in leading-edge foundry manufacturing.
The firm also highlighted that they see even bigger opportunities emerging in the memory sector. B. Riley believes the industry is in the early stages of a multi-year expansion cycle in both DRAM and NAND capacity.
Ichor Holdings, Ltd. (NASDAQ:ICHR) is a U.S. technology company that designs, engineers, and manufactures critical fluid delivery subsystems and components, especially gas and chemical delivery systems, used in semiconductor capital equipment.
11. Allegro MicroSystems, Inc. (NASDAQ:ALGM)
EPS Growth Next 5 Years: 56.07%
Number of Hedge Fund Holders: 34
Allegro MicroSystems, Inc. (NASDAQ:ALGM) is one of the High Growth Semiconductor Stocks to Buy Now. Allegro MicroSystems, Inc. (NASDAQ:ALGM) has gained more than 9% over the past month, and the Street remains bullish on the stock with 92% of the 13 analysts covering the stock maintaining a buy rating.
Recently, on June 22, TD Cowen analyst Joshua Buchalter raised the firm’s price target on the stock from $55 to $70 and maintained a Buy rating. The analyst noted that the improved price target comes after the firm updated its financial model, which reflects a more optimistic view of how the market is going to view Allegro MicroSystems in the future.
As per the updated financial model, TD Cowen believes that investors will rediscover and re-rate the company’s exposure to two strong secular growth areas, including the automotive sector and AI data center. The firm sees both sectors as long-term with strong structural demand tailwinds. The firm expects the company to be strongly positioned to deliver profitable mid-teen percentage growth over the long-term.
Allegro MicroSystems, Inc. (NASDAQ:ALGM) develops and manufactures sensor integrated circuits and application-specific analog power ICs.
10. Ambarella, Inc. (NASDAQ:AMBA)
EPS Growth Next 5 Years: 33.08%
Number of Hedge Fund Holders: 35
Ambarella, Inc. (NASDAQ:AMBA) is one of the High Growth Semiconductor Stocks to Buy Now. Ambarella, Inc. (NASDAQ:AMBA) has declined roughly 32% over the past month. However, the Street sees more than 52% upside from the current levels.
Recently, on June 17, Northland Securities reiterated an Outperform rating on the shares with a price target of $101. The firm highlighted the growing relevance of Ambarella in AI applications. Northland elaborated that as the cost of AI data and privacy risk rise, AI enterprise companies are being forced to move at least some AI workload away from cloud to on-site environments. The firm believes that this shift directly benefits Ambarella’s strength.
Northland emphasized that enterprise AI is not a one-size-fits-all market as deployments vary widely in their performance, power, and cost requirements, creating demand for a diverse range of chip solutions. Ambarella, Inc. (NASDAQ:AMBA) occupies a unique position across this spectrum, which Northland believes is driving meaningful product adoption among enterprise customers.
Ambarella Inc. (NASDAQ:AMBA) builds semiconductors, SOCs, and software to facilitate physical and edge AI, as well as automation functions.
9. Kulicke and Soffa Industries, Inc. (NASDAQ:KLIC)
EPS Growth Next 5 Years: 179.54%
Number of Hedge Fund Holders: 35
Kulicke and Soffa Industries, Inc. (NASDAQ:KLIC) is one of the High Growth Semiconductor Stocks to Buy Now. Kulicke and Soffa Industries, Inc. (NASDAQ:KLIC) has surged more than 13% over the past month to reach an all-time high. The gains have been primarily driven by strong momentum from fiscal Q2 2026 earnings reported last month.
During the quarter, the company posted $242.62 million in revenue, which topped the expectations of $230 million. The EPS of $0.79 also topped the expectations of $0.67. Management attributed growth to a remarkable 93% sequential increase in the memory segment. The segment benefited from strong demand for NAND technology and an increase in data center capacity.
The company also issued a strong Q3 2026 guidance and expects revenue of $310 million, while the non-GAAP EPS is expected to be $1.00. Notably, management has plans to nearly double the annual expenditure to $22 million.
Kulicke and Soffa Industries, Inc. (NASDAQ:KLIC) provides semiconductor assembly equipment and interconnect solutions used across automotive, compute, industrial, memory, communications, and related electronics markets.
8. FormFactor, Inc. (NASDAQ:FORM)
EPS Growth Next 5 Years: 30.51%
Number of Hedge Fund Holders: 39
FormFactor, Inc. (NASDAQ:FORM) is one of the High Growth Semiconductor Stocks to Buy Now. FormFactor, Inc. (NASDAQ:FORM) has gained around 3.6% over the past month, mainly driven by continued momentum from the Q1 2026 earnings beat in April and optimism due to its addition to the Russell 1000 index. The Street also remains bullish on the stock, with analysts expecting roughly 13% upside from the current level.
Recently, on June 12, B. Riley analyst Craig Ellis upgraded the stock from Neutral to Buy and maintained its price target of $165. The firm noted that the stock declined roughly 14% following the company’s analyst day in May. Ellis views this decline as an overreaction and noted that the company has strong fundamentals, a high growth rate, and is generating positive earnings. The analyst believes that the price reduction has left the stock undervalued, making it an attractive entry point for investors.
Moreover, the firm’s confidence in FormFactor, Inc. (NASDAQ:FORM) was further reinforced following checks conducted at B. Riley’s annual conference, where FormFactor’s execution capabilities and progress toward its long-term targets stood out positively.
FormFactor Inc (NASDAQ:FORM) primarily offers semiconductor testing equipment and operates through two segments: Probe Cards and Systems. The probe cards are used to test various semiconductor processors and systems-on-chip products. The Systems segment designs the hardware platforms that are used to test these semiconductor devices.
7. nLIGHT, Inc. (NASDAQ:LASR)
EPS Growth Next 5 Years: 65.10%
Number of Hedge Fund Holders: 46
nLIGHT, Inc. (NASDAQ:LASR) is one of the High Growth Semiconductor Stocks to Buy Now. nLIGHT, Inc. (NASDAQ:LASR) has declined more than 21% over the past month despite strong fiscal Q1 2026 earnings on May 8. Despite the decline, Wall Street continues to expect more than 31% upside from the current level, and 89% of the 9 analysts covering the stock maintain a buy rating.
During fiscal Q1 2026, the company reported $80.18 million in revenue, ahead of the expected $72.14 million. The EPS of $0.2 also topped the expectations of $0.08. Much of the growth was driven by record aerospace and defense product revenue of $33.1 million, which grew 98% year-over-year. The segment also helped improve the overall gross margins to 33.1%, ahead of 26.7% last year.
For fiscal Q2, the company projects revenue between $75 million and $81 million. Earlier on May 25, William Blair analyst Louie DiPalma had reiterated a Buy rating on the stock. The analyst noted that the company is strengthening its position with defense technologies, and this has become increasingly important due to the US government’s military priorities. The analyst sees nLIGHT, Inc. (NASDAQ:LASR) as a supplier of directed energy laser weapons and noted that the Department of Defense is actively accelerating investment in these systems as a cost-efficient solution for countering drones and cruise missiles.
nLight, Inc. (NASDAQ:LASR) is a leading provider of high-power semiconductor and fiber lasers.
6. Astera Labs, Inc. (NASDAQ:ALAB)
EPS Growth Next 5 Years: 45.32%
Number of Hedge Fund Holders: 53
Astera Labs, Inc. (NASDAQ:ALAB) is one of the High Growth Semiconductor Stocks to Buy Now. On June 24, Stifel raised the price target on Astera Labs, Inc. (NASDAQ:ALAB) from $260 to $460 and maintained a Buy rating on the shares. The stock has gained roughly 25% over the past month, propelled by its inclusion in the NASDAQ 100 Index.
Stifel noted that the increase in the price target is based on a thesis that the firm released last year. The thesis suggested that analog players, including Astera Labs, Credo Technologies, and Marvell, were expected to have a potential breakout in 2026. Stifel noted that the prediction has been validated as all three stocks have delivered beat and raise quarters.
Looking ahead at Q2, the firm believes that these names present buying opportunities rather than selling them due to market concerns. Stifel named Astera Labs as one of the names for long-term investors who want companies with strong technological advantages.
Astera Labs Inc. (NASDAQ:ALAB) is a global semiconductor company that provides hardware and software solutions for AI and cloud infrastructure applications to solve memory, data, and networking bottlenecks.
While we acknowledge the potential of ALAB 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 ALAB and that has 100x upside potential, check out our report about the cheapest AI stock.
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