In this article, we will look at the 14 Best Semiconductor Equipment Stocks to Invest In Now.
On March 2, Tom Lee, Fundstrat Global Advisors’ head of research, appeared on CNBC’s ‘Squawk Box’ to discuss the latest market trends and the effects of the U.S.-Israel conflict with Iran on the markets. He stated that while nobody likes to see headlines of explosions, it is not going to affect the fundamentals of the US. In the past, markets kind of sell off in the buildup and then tend to do better once the battle begins, and he thinks this is going to be similar.
However, experts are going to worry that the US-Israel conflict with Iran could encompass a larger conflict, possibly a World War 3. In the absence of that, in terms of the market, he thinks the worst of the sell-off will happen this week, and March will actually be an up month for the stock market.
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Lee further stated that oil is going to create a price shock as it ends up in so much of the economic supply chain. In the past, oil shocks were more at risk of tipping a weak economy into recession, but that is not where we are right now. He thus thinks that instead of being hawkish, the Fed might be dovish.
With these trends in view, let’s look at the best semiconductor equipment stocks to invest in now.
Our Methodology
We sifted through the Finviz stock screener to compile a list of the best semiconductor equipment stocks and selected the top 14 most popular among elite hedge funds as of Q3 2025. We sourced the hedge fund data from Insider Monkey’s database. The stocks are ranked in ascending order of hedge fund sentiment.
Note: All data was recorded on March 3.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
14 Best Semiconductor Equipment Stocks to Invest In Now
14. inTEST Corporation (NYSE:INTT)
inTEST Corporation (NYSE:INTT) is one of the best semiconductor equipment stocks to invest in now. On March 2, Northland lifted the price target on inTEST Corporation (NYSE:INTT) to $14 from $10 while maintaining a Market Perform rating on the shares. The rating update came after the company reported better-than-expected fiscal Q4 results and offered “solid” FY26 guidance.
inTEST Corporation (NYSE:INTT) reported financial results for fiscal Q4 2025 on February 27, reporting orders of $37.5 million, driven by continued strength in Auto/EV and Life Sciences. Backlog rose 9.4% sequentially, while gross margin expanded 350 basis points sequentially to 45.4%. Management reported that the company derived nearly 80% of its revenue from non-semiconductor end markets.
Revenue for fiscal Q4 rose $6.6 million over the third quarter, driven primarily by a gradual improvement in the customer capital spending environment across most end-markets, along with approximately $2.0 million in shipments that slipped out of the third quarter. inTEST Corporation (NYSE:INTT) reported that the net increase was primarily due to gains in Industrial, Defense/Aerospace, and Life Sciences, offset by continued weakness in Semi.
inTEST Corporation (NYSE:INTT) supplies precision-engineered solutions for manufacturing and testing across a range of markets, including semiconductors, defense, automotive, aerospace, electronics, fiber optic, telecom, medical, and machining. The company’s operations are divided into the Thermal Products and Electromechanical Solutions (EMS) business segments.
13. Aehr Test Systems, Inc. (NASDAQ:AEHR)
Aehr Test Systems, Inc. (NASDAQ:AEHR) is one of the best semiconductor equipment stocks to invest in now. Aehr Test Systems, Inc. (NASDAQ:AEHR) was upgraded to Outperform from Market Perform by William Blair on March 2, with the firm estimating the stock’s fair value between $50 and $70 per share. It told investors that the company has secured multiple design wins for both its package-level burn-in and wafer-level burn-in across at least two major customers, and that the firm’s proprietary model for burn-in tools for AI processors in 2030 forecasts a $1.5 billion to $2.3 billion total addressable market range. Blair estimates a 30% market share reflects a fair value of $50 to $70 per share for Aehr Test Systems, Inc. (NASDAQ:AEHR).
In a separate development, Aehr Test Systems, Inc. (NASDAQ:AEHR) announced on February 26 that it received a $14 million order from its lead AI processor customer for FOX™ systems, WaferPak™ contactors, and Automated WaferPak Auto Aligners for wafer-level burn-in of AI processors used in data center training and inference applications. Management reported that the order includes several new fully automated FOX-XP wafer-level test and burn-in systems, each configured to test nine 300mm wafers in parallel, along with a set of the company’s proprietary FOX WaferPak full-wafer Contactors and a fully integrated FOX WaferPak Auto Aligner. The products are set to be shipped within the next six months.
Aehr Test Systems, Inc. (NASDAQ:AEHR) designs, markets, manufactures, and sells test and burn-in equipment used in the semiconductor industry. The company’s products include FOX-XP, FOX-NP, and FOX-CP wafer contact parallel test and burn-in systems, the WaferPak full wafer contactor, the DiePak Carrier, the WaferPak Aligner, the DiePak Autoloader, and test fixtures.
12. Veeco Instruments Inc. (NASDAQ:VECO)
Veeco Instruments Inc. (NASDAQ:VECO) is one of the best semiconductor equipment stocks to invest in now. Veeco Instruments Inc. (NASDAQ:VECO) announced on March 2 the placement of orders for multiple Lumina® Metal Organic Chemical Vapor Deposition systems and multiple Spector® Ion Beam Sputtering Optical Coating systems by a global leader in optical communications and laser manufacturing.
Management reported that the tools would be employed to fabricate indium phosphide lasers for innovative optical communication solutions in the datacom industry. It further stated that the order establishes Lumina as the customer’s production tool of record for InP epitaxy, while the Spector systems are used to deposit high-quality optical coatings on laser diode facets. Adrian Devasayham, Senior Vice President of Product Line Management at Veeco Instruments Inc. (NASDAQ:VECO), was of the view that the additional orders for the company’s Spector systems “firmly position Veeco as a critical player in the InP laser manufacturing ecosystem”.
Veeco Instruments Inc. (NASDAQ:VECO) provided further perspective into the domain, stating that the transceiver market is poised to continue its rapid growth over the next several years, with statistics from LightCounting showing sales of optical transceivers and related products exceeding $23 billion in 2025, up 50% from 2024.
Veeco Instruments Inc. (NASDAQ:VECO) develops, manufactures, sells, and supports semiconductor process equipment, with the company’s technologies comprising metal organic chemical vapor deposition, advanced packaging lithography, wet etch and clean, laser annealing, ion beam, molecular beam epitaxy, wafer inspection, and atomic layer deposition systems.
11. Nova Ltd. (NASDAQ:NVMI)
Nova Ltd. (NASDAQ:NVMI) is one of the best semiconductor equipment stocks to invest in now. Nova Ltd. (NASDAQ:NVMI) announced financial results for fiscal Q4 2025 and the full year ended December 31, 2025, on February 12, 2026, reporting a quarterly revenue of $222.6 million, reflecting a 14% year-over-year growth. GAAP net income for the quarter reached $64.7 million, or $1.94 per diluted share, up 23% year-over-year.
For the full year 2025, Nova Ltd. (NASDAQ:NVMI) reported record annual revenue of $880.6 million, up 31% year-over-year, and record GAAP net income of $259.2 million, or $7.96 per diluted share, up 38% year-over-year. The company also reported record non-GAAP net income of $282.6 million, or $8.62 per diluted share, up 29% year-over-year.
Nova Ltd. (NASDAQ:NVMI) received several rating updates following the earnings release. Morgan Stanley lifted the price target on the stock to $453 from $335 on February 13, maintaining an Equal Weight rating on the shares. The firm told investors in a research note that the in-line earnings and wafer fab equipment guidance raise the question of can Nova outperform WFE”, adding that historical precedent of management execution says yes, but the firm is “not there yet”.
The same day, Evercore ISI also raised the price target on Nova Ltd. (NASDAQ:NVMI) to $485 from $340, reiterating an Outperform rating on the shares following a “beat & raise” fiscal Q4 report.
Nova Ltd. (NASDAQ:NVMI) provides metrology solutions for the semiconductor manufacturing industry, with its product portfolio including dimensional metrology, modeling & software, materials metrology, and chemical metrology.
10. Ultra Clean Holdings, Inc. (NASDAQ:UCTT)
Ultra Clean Holdings, Inc. (NASDAQ:UCTT) is one of the best semiconductor equipment stocks to invest in now. Ultra Clean Holdings, Inc. (NASDAQ:UCTT) received several rating updates following the release of its fiscal Q4 and full-year 2025 results on February 23. Needham lifted the price target on the stock to $70 from $50 on February 24, maintaining a Buy rating on the shares following the company’s fiscal Q4 earnings beat. The firm stated that it sees an improvement in customer forecasts on a weekly basis, and anticipates WFE growth at 15%-20% with a step function rise in Q3. Needham added that the post-earnings dip is likely short-lived, given the bullish commentary for the outer quarters.
In addition to Needham, TD Cowen also lifted the price target on Ultra Clean Holdings, Inc. (NASDAQ:UCTT) to $70 from $35 on February 24, maintaining a Buy rating on the shares and stating that the industry’s view of leading edge F/L and DRAM (HBM) has become incrementally more positive over the past quarter, with dep/etch/CMP leveraged companies benefitting in CY26, viewed as a positive for the company’s shares.
The same day, Oppenheimer raised the price target on Ultra Clean Holdings, Inc. (NASDAQ:UCTT) and reiterated an Outperform rating on the shares. According to the firm, the company issued strong Q1 guidance and a robust 2026 outlook, implying 15%-20% revenue growth.
Ultra Clean Holdings, Inc. (NASDAQ:UCTT) develops and supplies critical subsystems, components and parts, and ultra-high purity cleaning and analytical services for the semiconductor industry. The company’s operations are divided into the Products and Services segments.
9. IPG Photonics Corporation (NASDAQ:IPGP)
IPG Photonics Corporation (NASDAQ:IPGP) is one of the best semiconductor equipment stocks to invest in now. IPG Photonics Corporation (NASDAQ:IPGP) reported on February 26 that it received an order from Lockheed Martin Corporation for the delivery of its CROSSBOW™ high-energy laser counter-UAS defense systems. Valued at around $10 million, the order is anticipated to be delivered over the next several quarters. Dr. Mark Gitin, Chief Executive Officer of IPG Photonics Corporation (NASDAQ:IPGP), stated that the follow-on order from Lockheed Martin reflects not only the clear demand for deployable directed energy solutions but also the readiness of the company’s product.
In a separate development, Stifel lifted the price target on IPG Photonics Corporation (NASDAQ:IPGP) to $165 from $92 on February 13, maintaining a Buy rating on the shares. IPG Photonics Corporation (NASDAQ:IPGP) also received a rating update from Raymond James the same day, with the firm downgrading the stock to Outperform from Strong Buy while adjusting the price target to $180 from $97. The firm told investors in a research note that while it raised its estimates and price targets after a strong fiscal Q4 beat, the rating was trimmed after a sharp multiple re-rating and more than 100% year-to-date share appreciation.
IPG Photonics Corporation (NASDAQ:IPGP) designs, develops, produces, and distributes laser systems, fiber lasers, fiber amplifiers, and related optical components. The company’s products include lasers, beam delivery, medical, telecom equipment, product finder, and components such as pump diodes, chillers, and mid-IR crystals.
8. ACM Research, Inc. (NASDAQ:ACMR)
ACM Research, Inc. (NASDAQ:ACMR) is one of the best semiconductor equipment stocks to invest in now. On February 27, Roth Capital lifted the price target on ACM Research, Inc. (NASDAQ:ACMR) to $70 from $40, maintaining a Buy rating on the shares and telling investors that the company reported a fiscal Q4 seasonal revenue decline consistent with consensus expectations. The firm stated that it is encouraged by the strong double-digit 2026 revenue growth guidance, with contributions from new customers in new geographies, along with core China demand strength.
The rating update came after ACM Research, Inc. (NASDAQ:ACMR) reported its fiscal Q4 and full-year 2025 earnings on February 26. Total shipments in 2025 reached $854 million, down 12.2%, while total shipments in fiscal Q4 2025 were $228 million compared to $264 million in the prior year period. Management reported that total shipments included deliveries for revenue in the quarter and deliveries of first tools awaiting customer acceptance for potential revenue recognition in future quarters.
Revenue for the full year 2025 reached $901.3 million, up 15.2%, exhibiting growth of single wafer cleaning, Tahoe and semi-critical cleaning equipment, and higher sales of ECP, furnace and other technologies, and advanced packaging, services, and spares. Revenue for fiscal Q4 2025 reached $244.4 million, reflecting a 9.4% growth.
ACM Research, Inc. (NASDAQ:ACMR) develops, manufactures, and sells single-wafer wet cleaning equipment, supplying process solutions that can be used by semiconductor manufacturers in numerous manufacturing steps to remove particles, contaminants, and other random defects.
7. AXT, Inc. (NASDAQ:AXTI)
AXT, Inc. (NASDAQ:AXTI) is one of the best semiconductor equipment stocks to invest in now. AXT, Inc. (NASDAQ:AXTI) reported its fiscal Q4 2025 and full year 2025 results on 19th February, reporting revenue of $23.0 million for fiscal Q4, compared with $28.0 million for fiscal Q3 2025 and $25.1 million for fiscal Q4 2024. GAAP gross margin was 20.9% of revenue for fiscal Q4 2025, compared with 22.3% of revenue for fiscal Q3 2025 and 17.6% for fiscal Q4 2024. Revenue for the full year 2025 was $88.3 million, compared with $99.4 million in fiscal year 2024.
B. Riley lifted the price target on AXT, Inc. (NASDAQ:AXTI) to $21 from $18 on February 20, keeping a Neutral rating on the shares after the company reported fiscal Q4 sales and EPS in line with the pre-announcement. However, InP revenue fell to $8M from $13M due to limited Chinese export permits, and the firm believes that the stock is anticipated to remain range-bound until clarity on export permits emerges.
The same day, Wedbush raised the price target on AXT, Inc. (NASDAQ:AXTI) to $28 from $8.50 while maintaining an Outperform rating on the shares and telling investors that its target is set by applying a 30 times multiple to 2027 earnings. Although the multiple is considerably greater than what the firm would typically apply to a low margin materials company, Wedbush believes it to be supported by the substantially higher growth rates expected for InP over the next few years, along with the potential upside to its current model.
AXT, Inc. (NASDAQ:AXTI) is involved in the design, development, manufacture, and distribution of compound and single-element semiconductor substrates. The company also sells raw materials and specialty material substrates used to make substrates and other related products.
6. Ambarella, Inc. (NASDAQ:AMBA)
Ambarella, Inc. (NASDAQ:AMBA) is one of the best semiconductor equipment stocks to invest in now. BofA cut the price target on Ambarella, Inc. (NASDAQ:AMBA) to $72 from $85 on February 27, keeping a Neutral rating on the shares. It told investors that while the company reported in-line fiscal Q4 results and Q1 guidance, shares were down post-close on news of new U.S. limits imposed on Arashi Vision due to a patent dispute from GoPro. Arashi Vision operates as Insta360 and is Ambarella, Inc.’s (NASDAQ:AMBA) largest customer. BofA lifted FY27 and FY28 sales estimates 3% and 2% and pro-forma EPS forecasts to 71c and 93c, respectively, but trimmed its target with the edge AI opportunity balanced by slightly slower sales growth than small-to-mid cap semi peers.
Ambarella, Inc. (NASDAQ:AMBA) reported its fiscal Q4 and full year 2025 earnings on February 26, reporting revenue of $100.9 million for fiscal Q4 2026, up 20.1% from $84.0 million in the same period in fiscal 2025. Revenue for the fiscal year ended January 31, 2026, was $390.7 million, up 37.2% from $284.9 million for the prior year.
Ambarella, Inc. (NASDAQ:AMBA) develops low-power system-on-a-chip, or SoC, semiconductors and software for edge artificial intelligence, or AI, applications. The company’s products include electronic mirrors, video security, advanced driver assistance (ADAS), drive recorders, driver or cabin monitoring, autonomous driving, and other robotics applications. Its geographical segments include Taiwan, Asia Pacific, Europe, North America other than the United States, and the United States.
5. Entegris, Inc. (NASDAQ:ENTG)
Entegris, Inc. (NASDAQ:ENTG) is one of the best semiconductor equipment stocks to invest in now. Entegris, Inc. (NASDAQ:ENTG) received several rating updates following its earnings release for fiscal Q4 2025 on February 10. Goldman Sachs lifted the price target on Entegris, Inc. (NASDAQ:ENTG) to $95 from $75 on February 11, keeping a Sell rating on the shares and telling investors in a research note that the quarter and guidance came in above Street estimates, which should cause the stock to trade higher. It further stated that while Entegris, Inc. (NASDAQ:ENTG) is remaining focused on an improvement in operational execution, the firm awaits clearer signs of a sustained cyclical upturn in the CapEx business and further evidence of execution improvement.
BMO Capital also lifted the price target on Entegris, Inc. (NASDAQ:ENTG) to $148 from $126 the same day, maintaining an Outperform rating on the shares and stating that expectations for fiscal Q4 earnings were considerably higher for the company due to solid year-to-date stock performance, and the business lived up to expectations. It added that 2026 should see strong operating leverage as MSI/industry capex growth and multiple node transitions will help the company leverage its spare capacity and delever its balance sheet.
Entegris, Inc. (NASDAQ:ENTG) develops, manufactures, and supplies specialty materials for the microelectronics industry, with its operations divided into the following segments: Materials Solutions (MS), Microcontamination Control (MC), and Advanced Materials Handling (AMH).
4. Onto Innovation Inc. (NYSE:ONTO)
Onto Innovation Inc. (NYSE:ONTO) is one of the best semiconductor equipment stocks to invest in now. On February 20, B. Riley lifted the price target on Onto Innovation Inc. (NYSE:ONTO) to $275 from $240, maintaining a Buy rating on the shares and telling investors that the company’s fiscal Q4 results came in slightly below expectations, while the fiscal Q1 guidance came in ahead of consensus, with strong growth and gross margin expansion expected through the year.
The same day, Oppenheimer lifted the price target on Onto Innovation Inc. (NYSE:ONTO) to $265 from $225 while keeping an Outperform rating on the shares. The firm stated that the company’s fiscal Q4 revenue was in line, with the underlying momentum improving meaningfully and securing a considerable $240 million HBM volume purchase agreement. Oppenheimer further added that management lifted the revenue guidance for the fiscal half of 2026 again. Onto Innovation Inc. (NYSE:ONTO) also received a rating update from Jefferies on February 20, with the firm lifting the price target on the stock to $300 from $200 and reiterating a Buy rating on the shares.
Onto Innovation Inc. (NYSE:ONTO) is involved in the design, development, manufacture, and support of high-performance control metrology, defect inspection, lithography, and data analysis systems used by microelectronics device manufacturers. The company is also involved in offering process and yield management solutions used in bare silicon wafer production and wafer processing facilities.
3. Amkor Technology, Inc. (NASDAQ:AMKR)
Amkor Technology, Inc. (NASDAQ:AMKR) is one of the best semiconductor equipment stocks to invest in now. Amkor Technology, Inc. (NASDAQ:AMKR) reported its fiscal Q4 and full year 2025 earnings on February 9, reporting net sales of $1.89 billion in fiscal Q4, up 16% year-on-year. Net income for the quarter was $172 million, while earnings per diluted share reached $0.69. Net sales for the full year 2025 were $6.71 billion, up 6% year-on-year, with gross profit reaching $939 million and operating income $467 million.
Amkor Technology, Inc. (NASDAQ:AMKR) received several rating updates following its earnings release. Needham lifted the price target on the stock to $65 from $50 on February 10, maintaining a Buy rating on the shares following the fiscal Q4 earnings beat and stating that most of the reported metrics were above consensus estimates. It further noted that the FY26 CapEx outlook of $2.5 billion to $3 billion, which is a record not seen in the company’s history and is well above the Street, points towards the management’s strong conviction in the long-term advanced packaging growth.
Amkor Technology, Inc. (NASDAQ:AMKR) also received a rating update from Goldman Sachs on February 10. The firm raised the price target on the stock to $43 from $38 and maintained a Neutral rating on the shares, stating that it is anticipated to move modestly higher after a quarter that beat Street expectations despite elevated pre-print optimism. It further said that strength was supported by factors such as continued execution on advanced packaging for AI datacenters, constructive positioning around Chip-on-Wafer-on-Substrate-related spending, and solid operational progress, including Vietnam reaching break-even and Phase 1 construction at the Arizona campus.
Amkor Technology, Inc. (NASDAQ:AMKR) provides outsourced semiconductor packaging and test services, with the company’s services including design, package characterization, test, and wafer bumping services.
2. Qnity Electronics, Inc. (NYSE:Q)
Qnity Electronics, Inc. (NYSE:Q) is one of the best semiconductor equipment stocks to invest in now. On February 27, KeyBanc adjusted the price target on Qnity Electronics, Inc. (NYSE:Q) to $147 from $117 while maintaining an Overweight rating on the shares. The firm told investors that the fiscal Q4 update highlights accelerating growth in semi materials, thermal management solutions, and the adoption of advanced packaging. It added that the high-single-digit sequential growth in Q1 2026 is positive, compared to typical flat seasonality.
The rating update came after Qnity Electronics, Inc. (NYSE:Q) reported its fiscal Q4 and full year 2025 results on February 26, reporting full year net sales of $4.75 billion, up 10% year-over-year, and organic sales up 10%. GAAP net income was $729 million, up 1% year-over-year. Qnity Electronics, Inc. (NYSE:Q) also announced a multi-year transformation plan to deliver a $100 million run-rate EBITDA benefit by 2028, and authorized the repurchase of up to $500 million of outstanding common shares.
Qnity Electronics, Inc. (NYSE:Q) manufactures electronic materials for the semiconductor and electronics industries, with its brands including Acuplane, Circuposit, Duroptix, EPIC, Ikonic, Kalrez, Kapton, Laird, Microfill, Pyralux, Riston, Solderon Tin, and Silveron Silver. The company’s products include display materials, circuit board materials, electronic components, electrical insulation materials, thermal management materials, plating on plastics, and other related products. Its operations are divided into the Semiconductor Technologies and Interconnect Solutions segments.
1. KLA Corporation (NASDAQ:KLAC)
KLA Corporation (NASDAQ:KLAC) is one of the best semiconductor equipment stocks to invest in now. KLA Corporation (NASDAQ:KLAC) received several rating updates in February. On February 26, Citi opened an “upside 30-day catalyst watch” on KLA Corporation (NASDAQ:KLAC) and maintained a Buy rating on the shares, setting a price target of $1,800. The firm believes that the company will issue 2030 targets that can reach $24 billion in revenue and $68 in earnings per share.
On February 24, Morgan Stanley lifted the price target on KLA Corporation (NASDAQ:KLAC) to $1,809 from $1,751 while maintaining an Overweight rating on the shares. The firm told investors in a research note that it raised its 2026 and 2027 wafer fab equipment market growth forecasts to 23% and 27% from 13% and 19%, respectively, driven by DRAM memory spending.
KLA Corporation (NASDAQ:KLAC) also received a rating update from Jefferies on February 12. The firm lifted the price target on the stock to $520 from $390 on February 12, maintaining a Buy rating on the shares and telling investors that the company’s low-double digit WFE growth outlook is more in line with KLA Corp’s view than the higher Lam Research forecast. Jefferies also believes that the outlook offered by Nova is “on the conservative end and there is room for upside”.
KLA Corporation (NASDAQ:KLAC) is involved in the supply of process control and yield management solutions for the semiconductor and related nano-electronics industries. The company’s operations are divided into the following operations: Semiconductor Process Control, Specialty Semiconductor Process, and PCB, Display, and Component Inspection.
While we acknowledge the potential of KLAC 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 KLAC and that has 100x upside potential, check out our report about this cheapest AI stock.
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