On September 4, President Donald Trump said his administration will put tariffs on semiconductor imports from companies that will not move their production to the United States. Trump spoke about this before a dinner with CEOs of big technology companies.
The president said:
“Yeah, I have discussed it with the people here. Chips and semiconductors – we will be putting tariffs on companies that aren’t coming in.”
Trump did not say exactly when but he pointed out that the administration would be looking to impose a tariff “very shortly.”
He also did not say exactly how high the tariffs would be but described them as “fairly substantial” though not very high.
Trump explained that if companies come to build in the US, they will not have to pay these tariffs. Previously, in August, the president had said that the US would impose a tariff of about 100% on semiconductor imports, but only for companies that do not make chips in the US or have not committed to doing so.
Some of the biggest chip companies like Taiwan Semiconductor Manufacturing Company (TSMC) from Taiwan and South Korea’s Samsung Electronics and SK Hynix have already announced plans to invest in making chips in the US.
With this background in mind, let’s take a look at 14 small publicly traded semiconductor companies to invest in now.
Our Methodology
To compile our list of the 14 small publicly traded semiconductor companies to invest in now, we used stock screeners from Finviz and Yahoo Finance to look for semiconductor stocks with a market capitalization between $300 million and $5 billion as of September 19, 2025. Next, we focused on the top 14 stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q2 2025 database of 983 elite hedge funds. Finally, the 14 small publicly traded semiconductor companies to invest in now were ranked in ascending order based on the number of hedge funds holding stakes in them as of Q2 2025.
Why do we care about what hedge funds do? 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).
14 Small Publicly Traded Semiconductor Companies to Invest in Now
14. Arteris, Inc. (NASDAQ:AIP)
Market Capitalization: $420.95 Million
Number of Hedge Fund Holders: 18
Arteris, Inc. (NASDAQ:AIP) is one of the best small publicly traded semiconductor companies to invest in now. On August 25, Northland Securities maintained a Buy rating on Arteris, Inc. (NASDAQ:AIP) with a price target of $16.
Previously, on August 5, TD Cowen had also reiterated a Buy rating on Arteris, Inc. (NASDAQ:AIP) and raised the price target from $12 to $15. This decision came after the company reported results for the second quarter of 2025.
Arteris, Inc. (NASDAQ:AIP) reported earnings that surpassed expectations. The rise in revenue and strategic wins indicate a promising future for the company. Arteris, Inc. (NASDAQ:AIP) reported an Annual Contract Value (ACV) plus royalties of $69.1 million, up 15% compared to last year, growing to the highest level the company has ever reported. The company’s remaining performance obligations (RPO) rose by 28% year-over-year to $99.3 million, marking the highest level the company has ever reported.
Additionally, Arteris, Inc. (NASDAQ:AIP) is gaining new customers, including big names like AMD. The company shared that AMD has agreed to use FlexGen, the company’s smart network-on-chip technology that will provide high-performance data transport in AMD chiplets and power AI across AMD’s broad portfolio.
As of September 19, analysts are bullish on Arteris, Inc. (NASDAQ:AIP). The 1-year median price target of $14.50 set by analysts indicates a potential upside of 46.91% from current levels.
Arteris, Inc. (NASDAQ:AIP) is a leading provider of semiconductor system IP and integration automation software for system-on-chip (SoC) development.
13. Wolfspeed, Inc. (NYSE:WOLF)
Market Capitalization: $348.95 Million
Number of Hedge Fund Holders: 19
Wolfspeed, Inc. (NYSE:WOLF) is one of the best small publicly traded semiconductor companies to invest in now. On September 10, Wolfspeed, Inc. (NYSE:WOLF) announced the commercial launch of its 200mm silicon carbide (SiC) materials products.
The company first offered 200mm SiC to select customers. Encouraged by the positive feedback and response, Wolfspeed, Inc. (NYSE:WOLF) decided to make these products available to the broader market.
Additionally, the company is offering 200mm SiC epitaxy for immediate qualification. When combined with Wolfspeed, Inc.’s (NYSE:WOLF) 200mm bare wafers, this delivers strong scalability and higher quality to enable the next generation of high-performance power devices.
According to the report by Wolfspeed, Inc. (NYSE:WOLF), these advancements will help device makers to improve the production yield of MOSFETs, speed up time-to-market, and offer stronger solutions in areas like automotive, renewable energy, and industrial applications.
Wolfspeed, Inc. (NYSE:WOLF) is an American company that develops and manufactures wide-bandgap semiconductors. The company focuses on silicon carbide materials and power devices for various applications such as electric vehicles, fast charging, and renewable energy and storage.
12. Vishay Intertechnology, Inc. (NYSE:VSH)
Market Capitalization: $2.08 Billion
Number of Hedge Fund Holders: 23
Vishay Intertechnology, Inc. (NYSE:VSH) is one of the best small publicly traded semiconductor companies to invest in now. On September 17, Vishay Intertechnology, Inc. (NYSE:VSH) announced a new series of Automotive Grade AC line-rated ceramic disc safety capacitors. These are the industry’s first such capacitors with a Y1 rating to be offered in a surface-mount casing.
According to the report by Vishay Intertechnology, Inc. (NYSE:VSH), these new devices are designed to suppress and filter electromagnetic interference (EMI) and radio-frequency interference (RFI) in harsh and high-humidity environments.
The capacitors meet AEC-Q200 standards and can be used in on-board chargers (OBC), traction inverters, battery management systems (BMS), e-compressors, and AC/DC converters in electric (EV), hybrid electric (HEV), and plug-in hybrid electric (PHEV) vehicles.
For these applications, the new devices by Vishay Intertechnology, Inc. (NYSE:VSH) offer high humidity resistance, following Class IIB humidity standards according to IEC60384-14.
The new capacitors by Vishay Intertechnology, Inc. (NYSE:VSH) are RoHS-compliant and halogen-free. They use a copper-plated ceramic disc and feature encapsulation made of flame-resistant epoxy resin, meeting UL 94 V-0 ratings. The devices are available in two sizes: the C case with a 10 mm creepage distance and the D case with a 14.5 mm creepage distance.
Vishay Intertechnology, Inc. (NYSE:VSH) manufactures a wide range of discrete semiconductors and passive electronic components for the automotive, industrial, computing, consumer, telecommunications, military, aerospace, and medical markets.
11. MaxLinear, Inc. (NASDAQ:MXL)
Market Capitalization: $1.41 Billion
Number of Hedge Fund Holders: 24
MaxLinear, Inc. (NASDAQ:MXL) is one of the best small publicly traded semiconductor companies to invest in now. On August 26, Stifel reaffirmed its Buy rating on MaxLinear, Inc. (NASDAQ:MXL) with a $21 price target.
The company reported strong results for the second quarter of 2025. MaxLinear, Inc. (NASDAQ:MXL) reported that net revenue for Q2 reached $108.8 million, up 13% quarter-over-quarter and 18% year-over-year.
MaxLinear, Inc. (NASDAQ:MXL) performed well and exceeded the mid-point of its revenue guidance. The company also returned to profitability on a non-GAAP basis and generated positive free cash flow in the second quarter. The company’s management highlighted strong customer and product traction in areas like high-speed interconnects for the data center, multi-gigabit PON access, Wi-Fi connectivity, ethernet, and wireless infrastructure.
The company’s success in these markets, along with better customer order rates, and a strong product backlog, positions MaxLinear, Inc. (NASDAQ:MXL) well for growth in 2025 and 2026.
On September 2, Benchmark also reiterated a Buy rating on MaxLinear, Inc. (NASDAQ:MXL) with a price target of $25.
Overall, analysts are bullish on MaxLinear, Inc. (NASDAQ:MXL). As of September 19, the 12-month median price target of $19 set by analysts indicates a potential upside of 17.36% from the current stock price.
MaxLinear, Inc. (NASDAQ:MXL) is a leading provider of radio frequency (RF), analog, digital and mixed-signal semiconductor products.
10. Diodes Incorporated (NASDAQ:DIOD)
Market Capitalization: $2.51 Billion
Number of Hedge Fund Holders: 25
Diodes Incorporated (NASDAQ:DIOD) is one of the best small publicly traded semiconductor companies to invest in now. On September 17, Diodes Incorporated (NASDAQ:DIOD) announced a new product called the AP22950. It is a high-voltage power switch designed with several protection features.
According to the announcement by Diodes Incorporated (NASDAQ:DIOD), the protection features include reverse-current protection (RCP), undervoltage lockout (UVLO), overvoltage lockout (OVP), and overtemperature protection (OTP). These features help make the AP22950 a strong VBUS switch for USB Power Delivery (PD) 3.1 Standard Power Range (SPR) ports.
The AP22950 includes a built-in TVS diode on the VBUS pin. Together with a 22µF input capacitor, this diode protects both the switch and the downstream system from surges up to 110 volts, meeting the IEC61000-4-5 110V surge ratings.
The AP22950’s reverse current protection is enhanced to block reverse currents while also supplying the highest voltage to the internal system. This allows it to support portable devices that have multiple power inputs.
The new switch by Diodes Incorporated (NASDAQ:DIOD) can handle continuous load currents up to 5 amps and output power up to 100 watts. It also provides strong protection against USB-C VBUS surges.
Diodes Incorporated (NASDAQ:DIOD) supplies high-quality semiconductor products to companies in the automotive, industrial, computing, consumer electronics, and communications markets.
9. Photronics, Inc. (NASDAQ:PLAB)
Market Capitalization: $1.47 Billion
Number of Hedge Fund Holders: 25
Photronics, Inc. (NASDAQ:PLAB) is one of the best small publicly traded semiconductor companies to invest in now. On August 28, DA Davidson reaffirmed its Buy rating for Photronics, Inc. (NASDAQ:PLAB) with a price target of $30.
This decision came after the company reported results for its third quarter of fiscal year 2025. DA Davidson pointed out that Photronics, Inc. (NASDAQ:PLAB) is still profitable and well-positioned to move forward with its planned expansion. This expansion will need more capital spending over the next two to three years.
DA Davidson has a positive outlook on Photronics, Inc. (NASDAQ:PLAB). The firm expects the company to continue performing at its current level for a few more quarters before seeing a cyclical upturn that can support revenue growth and margin expansion.
On August 28, Craig-Hallum also reiterated its Buy rating on Photronics, Inc. (NASDAQ:PLAB) with a price target of $36.
As of September 19, analysts currently hold a consensus Buy rating on Photronics, Inc. (NASDAQ:PLAB). The 1-year median price target of $32.95 set by analysts indicates a potential upside of 32.12% from current levels.
Photronics, Inc. (NASDAQ:PLAB) is an American semiconductor photomask manufacturer that specializes in integrated circuit (IC) and flat panel display (FPD) photomasks.
8. Kulicke and Soffa Industries, Inc. (NASDAQ:KLIC)
Market Capitalization: $2.19 Billion
Number of Hedge Fund Holders: 28
Kulicke and Soffa Industries, Inc. (NASDAQ:KLIC) is one of the best small publicly traded semiconductor companies to invest in now. On September 9, Kulicke and Soffa Industries, Inc. (NASDAQ:KLIC) introduced ACELON, a new precision dispensing solution designed for a wide range of semiconductor, surface-mount technology (SMT), and automotive assembly applications.
ACELON builds on Kulicke and Soffa Industries, Inc.’s (NASDAQ:KLIC) machine architecture in wire bonding, which is already successfully deployed by customers in critical high-reliability and high-volume production environments around the world.
According to the report by Kulicke and Soffa Industries, Inc. (NASDAQ:KLIC), ACELON can handle the most demanding advanced dispensing tasks with enhanced process stability. This makes the new solution suitable for the most critical production environments.
With an expanded working area, ACELON also offers flexibility for handling bigger substrates and complex assembly setups. It offers high precision with sub-20µm wet accuracy to ensure consistent material placement for critical applications that require strict dimensional tolerances.
ACELON is designed to reduce setup time, improve production consistency, and help customers handle challenges in advanced packaging production more effectively.
Kulicke and Soffa Industries, Inc. (NASDAQ:KLIC) specializes in semiconductor assembly technology. The company supports better device performance across automotive, compute, industrial, memory, and communications markets.
7. Silicon Laboratories Inc. (NASDAQ:SLAB)
Market Capitalization: $4.50 Billion
Number of Hedge Fund Holders: 29
Silicon Laboratories Inc. (NASDAQ:SLAB) is one of the best small publicly traded semiconductor companies to invest in now. On September 12, Stifel reaffirmed its Buy rating for Silicon Laboratories Inc. (NASDAQ:SLAB) with a price target of $150.
This decision came after Stifel met with Silicon Laboratories Inc.’s (NASDAQ:SLAB) CEO Matt Johnson, CFO Dean Butler, and Senior Director of IR Giovanni Pacelli at a non-deal roadshow in Europe. The research firm got “a more grounded view” of the company’s three key strengths: Breadth, Depth, and Focus. These strengths support strong growth across various protocols and technologies.
Stifel’s research note mentioned that Silicon Laboratories Inc. (NASDAQ:SLAB) has built an impressive design win pipeline worth $10 billion. The firm also pointed out that AI at the edge is still evolving and likely a few years away from mainstream adoption. However, more devices will need strong connectivity to make full use of AI capabilities.
The research firm believes Silicon Laboratories Inc. (NASDAQ:SLAB) is in a strong position with its key networking offerings like Bluetooth Low Energy (BLE) and ultra-low power Wi-Fi. These products will help the company benefit from the rising demand for connectivity.
Silicon Laboratories Inc. (NASDAQ:SLAB) is a fabless semiconductor company that specializes in low-power connectivity solutions.
6. Axcelis Technologies, Inc. (NASDAQ:ACLS)
Market Capitalization: $3.01 Billion
Number of Hedge Fund Holders: 29
Axcelis Technologies, Inc. (NASDAQ:ACLS) is one of the best small publicly traded semiconductor companies to invest in now. On September 8, Axcelis Technologies, Inc. (NASDAQ:ACLS) introduced its new product called the GSD Ovation ES, which is a high-current ion implanter designed specifically for engineered substrates.
The GSD Ovation ES supports best-in-class high current implanting capabilities for Hydrogen and Helium ions for engineered substrate applications like wafer splitting. According to the report by Axcelis Technologies, Inc. (NASDAQ:ACLS), the system is an improved version of the GSD Ovation Series, the industry benchmark for productivity in batch implantation.
The company’s GSD Ovation ES system offers excellent flexibility and cost-efficiency while also providing production-proven wafer handling capability for multiple substrate types such as Silicon Carbide (SiC), Lithium Tantalate (LiTaO3), and Lithium Niobate (LiNbO3). The system also has wafer cooling capability and superior beam power.
Axcelis Technologies, Inc. (NASDAQ:ACLS) designs and manufactures ion implant systems used in semiconductor manufacturing, providing high-productivity solutions for the semiconductor industry.
5. Synaptics Incorporated (NASDAQ:SYNA)
Market Capitalization: $2.80 Billion
Number of Hedge Fund Holders: 29
Synaptics Incorporated (NASDAQ:SYNA) is one of the best small publicly traded semiconductor companies to invest in now. On September 11, Deutsche Bank initiated coverage on Synaptics Incorporated (NASDAQ:SYNA), assigning a Buy rating and setting the price target at $85.
The investment bank has a positive outlook on Synaptics Incorporated (NASDAQ:SYNA) as it shifts from a mobile-centric company to a provider of connectivity and processor solutions across a wide range of industries.
Deutsche Bank pointed out that Synaptics Incorporated (NASDAQ:SYNA) has lowered its mobile concentration, which used to represent about 40% of the company’s revenue. The company has also reduced customer concentration, especially with Apple Inc. (AAPL), which used to represent about 30% of sales.
The investment bank expects Synaptics Incorporated’s (NASDAQ:SYNA) revenue, margin, and EPS growth to accelerate. This growth will be driven by the core IoT segment and cyclical rebounds in the Enterprise and Auto segments.
Synaptics Incorporated (NASDAQ:SYNA) designs and sells custom semiconductor solutions for a wide range of applications, including human-machine interfaces and AI-native embedded computing.
4. nLIGHT, Inc. (NASDAQ:LASR)
Market Capitalization: $1.56 Billion
Number of Hedge Fund Holders: 30
nLIGHT, Inc. (NASDAQ:LASR) is one of the best small publicly traded semiconductor companies to invest in now. On September 15, Cantor Fitzgerald increased the price target for nLIGHT, Inc. (NASDAQ:LASR) from $27.50 to $33.50 while maintaining an Overweight rating.
The update came after meetings with nLIGHT, Inc.’s (NASDAQ:LASR) CEO and Vice President of Corporate Development. Cantor Fitzgerald felt more positive about the company’s near- and medium-term outlook following these discussions.
The research firm expects that nLIGHT, Inc. (NASDAQ:LASR) has sufficient backlog and pipeline to meet the higher end of its third-quarter guidance. Cantor Fitzgerald also believes the company will grow sequentially in the fourth quarter.
nLIGHT, Inc. (NASDAQ:LASR) designs and manufactures high-power semiconductor and fiber lasers for directed energy, optical sensing, and advanced manufacturing applications.
3. ACM Research, Inc. (NASDAQ:ACMR)
Market Capitalization: $2.29 Billion
Number of Hedge Fund Holders: 33
ACM Research, Inc. (NASDAQ:ACMR) is one of the best small publicly traded semiconductor companies to invest in now. On September 17, ACM Research, Inc. (NASDAQ:ACMR) introduced its first Ultra ECDP Electrochemical Deplating tool, which is specifically designed for wide bandgap compound semiconductor manufacturing.
The Ultra ECDP tool is designed for electrochemical wafer-level gold (Au) etching performed outside of the wafer pattern area. According to the report by ACM Research, Inc. (NASDAQ:ACMR), the tool offers a smaller undercut and enhanced uniformity and gold line appearance.
The new tool delivers specialized processes like removing Au bumps, etching thin Au films, and deep-hole Au deplating. The Ultra ECDP tool has integrated pre-wet and cleaning chambers. With precise chemistry circulation and advanced multi-anode electrochemical deplating technology, it reduces side etching, improves surface finish, and keeps excellent uniformity across all parts.
Dr. David Wang, ACM Research, Inc.’s (NASDAQ:ACMR) President and CEO, noted that the compound semiconductor market is growing because of strong demand from electric vehicles, 5G/6G communication, RF and AI applications, and more.
The Ultra ECDP tool has a modular design, offering flexibility to combine plating and deplating on the same platform. It uses multi-anode technology to control deplating in different areas and also offers full-face horizontal deplating to avoid cross-contamination at the time of processing.
ACM Research, Inc. (NASDAQ:ACMR) develops, manufactures, and sells semiconductor process equipment including cleaning, electroplating, stress-free polishing, vertical furnace processes, track, PECVD, and wafer- and panel-level packaging tools. The company’s products support advanced and semi-critical semiconductor device manufacturing.
2. Silicon Motion Technology Corporation (NASDAQ:SIMO)
Market Capitalization: $3.14 Billion
Number of Hedge Fund Holders: 36
Silicon Motion Technology Corporation (NASDAQ:SIMO) is one of the best small publicly traded semiconductor companies to invest in now. On August 5, Silicon Motion Technology Corporation (NASDAQ:SIMO) announced it will showcase its new MonTitan SM8366 PCIe Gen5 SSD controller solutions at the Future of Memory and Storage (FMS) 2025 in Santa Clara, California.
The company’s demonstration used the VAST Data Ceres V2 AI Storage platform and Aetina NVIDIA MGX server. Silicon Motion Technology Corporation (NASDAQ:SIMO) also showcased other advanced storage solutions designed for AI tasks.
The company is focused on creating solutions that deliver next-generation scalability and performance for data-intensive workloads. Silicon Motion Technology Corporation’s (NASDAQ:SIMO) MonTitan platform is specially designed to handle the extreme demands of AI server storage.
The company aims to provide storage solutions that support the ultra-high capacity and performance requirements for future AI applications for data centers and enterprise storage.
Wall Street has reacted positively to this news. Since August 5, Silicon Motion Technology Corporation (NASDAQ:SIMO) has gone up by 23.56% as of September 19.
Silicon Motion Technology Corporation (NASDAQ:SIMO) is a semiconductor company that specializes in designing and marketing NAND flash controllers for solid-state storage devices. The company also offers custom SSD solutions for high-performance hyperscale data centers and specialized industrial and automotive markets.
1. Ambarella, Inc. (NASDAQ:AMBA)
Market Capitalization: $3.54 Billion
Number of Hedge Fund Holders: 38
Ambarella, Inc. (NASDAQ:AMBA) is one of the best small publicly traded semiconductor companies to invest in now. On August 29, Needham increased its price target for Ambarella, Inc. (NASDAQ:AMBA) from $90 to $100 and maintained a Buy rating.
This decision came after Ambarella, Inc. (NASDAQ:AMBA) reported strong results for the second quarter of fiscal year 2026. The company also provided Q3 guidance that surpassed market expectations.
Needham’s analysis suggests that IoT will continue to be the primary growth driver for Ambarella, Inc. (NASDAQ:AMBA) until the company wins a major automotive design, which is expected to happen around 2027-2028.
On August 29, Morgan Stanley also increased its price target for Ambarella, Inc. (NASDAQ:AMBA) from $80 to $96 while keeping an Overweight rating. The firm believes that while autonomous auto enthusiasm is on hold for now, near-term growth is being driven by edge-based AI applications in areas like portable video, drones, and enterprise infrastructure.
Overall, analysts are bullish on Ambarella, Inc. (NASDAQ:AMBA). As of September 19, the 12-month median price target of $96 set by analysts indicates a potential upside of 15.76% from the current stock price.
Ambarella, Inc. (NASDAQ:AMBA) is an American fabless semiconductor design company specializing in low-power and high-resolution video compression, image processing, and deep neural network processors. The company’s products are used in areas like video security, advanced driver assistance (ADAS), electronic mirrors, drive recorders, driver/cabin monitoring, autonomous driving, and other robotics applications.
While we acknowledge the potential of AMBA as an investment, 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 AMBA and that has a 100x upside potential, check out our report about the cheapest AI stock.
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Disclosure: None.
