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.
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