In this article, we will list the 5 Best American Semiconductor Stocks to Buy According to Analysts. Please visit 9 Best American Semiconductor Stocks to Buy According to Analysts if you would like to see the extended list and the methodology behind it.
5. GLOBALFOUNDRIES Inc. (NASDAQ:GFS)
On May 7, 2026, GLOBALFOUNDRIES Inc. (NASDAQ:GFS) said during its Investor Day that it sees durable growth opportunities tied to AI-centric markets, supported by an expanding technology roadmap focused on scaling AI data centers and enabling AI applications in the physical world through its global manufacturing footprint. The company also announced that its board approved GlobalFoundries’ first quarterly dividend. The dividend of 12c per share will be payable on July 14 to shareholders of record as of June 24.
GLOBALFOUNDRIES Inc. (NASDAQ:GFS) additionally introduced a new capital allocation framework targeting returns of up to 50% of trailing twelve-month non-IFRS adjusted free cash flow, after investments, through dividends and share repurchases. CEO Tim Breen said the company remains positioned around several long-term trends reshaping the semiconductor industry and is focusing on areas where customers require differentiated technologies and manufacturing scale. CFO Sam Franklin added that the company’s updated long-term financial framework reflects confidence in multiple growth drivers across higher-margin businesses through the remainder of the decade.
On May 6, 2026, Baird raised its price target on GLOBALFOUNDRIES Inc. (NASDAQ:GFS) to $100 from $60 while maintaining an Outperform rating. The firm said it updated its model following Q1 results and expects continued gross margin improvement.
On May 5, 2026, GLOBALFOUNDRIES Inc. (NASDAQ:GFS) reported Q1 EPS of 40c, versus the 35c consensus estimate, while revenue totaled $1.64B compared to expectations of $1.63B. Breen said the company delivered strong first-quarter results, with all non-IFRS profitability metrics reaching or exceeding the high end of guidance ranges. He added that execution across the business helped drive progress in secular growth markets where the company’s differentiated technologies are supporting market share gains and long-term value creation.
GLOBALFOUNDRIES Inc. (NASDAQ:GFS) operates as a semiconductor foundry providing wafer fabrication services and technologies globally.
4. ON Semiconductor Corporation (NASDAQ:ON)
On May 5, 2026, Roth Capital raised the firm’s price target on ON Semiconductor Corporation (NASDAQ:ON) to $125 from $70 while maintaining a Buy rating. The firm said Q1 revenue came in ahead of consensus expectations and noted that Q2 guidance points to renewed growth, supported by improving automotive demand and momentum from AI data center program wins.
Deutsche Bank also raised its price target on ON Semiconductor Corporation (NASDAQ:ON) to $110 from $75 while maintaining a Buy rating. The firm said the Q1 report suggests the company has reached an inflection point.
Similarly, Jefferies raised its price target on ON Semiconductor Corporation (NASDAQ:ON) to $115 from $73 and maintained a Buy rating. The firm said softness in automotive markets may limit near-term upside, though trends across the broader business are improving. Jefferies also noted that the company’s AI data center business continues to outperform, with newer products driving higher semiconductor content opportunities per XPU deployment.
On May 4, 2026, ON Semiconductor Corporation (NASDAQ:ON) reported Q1 non-GAAP EPS of 64c, versus the 62c consensus estimate, while revenue totaled $1.51B compared to expectations of $1.49B. CEO Hassane El-Khoury said the company exceeded expectations as demand strengthened throughout the quarter and added that ON Semi has moved beyond the cyclical trough and is now entering a recovery phase. El-Khoury also said the company’s AI data center business accelerated during the quarter, growing more than 30% sequentially. He added that management remains encouraged by the overall health of the business and the longer-term opportunities tied to rising semiconductor content across automotive, industrial, and AI data center applications.
ON Semiconductor Corporation (NASDAQ:ON) provides intelligent sensing and power solutions globally.
3. Astera Labs, Inc. (NASDAQ:ALAB)
On May 6, 2026, Needham raised the firm’s price target on Astera Labs, Inc. (NASDAQ:ALAB) to $260 from $220 while maintaining a Buy rating. The firm said the company delivered another significant beat-and-raise quarter, driven by continued growth across its Scorpio, Aries, and Taurus product families. Needham also noted that Astera Labs expects its optical portfolio to begin ramping in FY27, leveraging technology acquired through the aiXscale transaction.
Roth Capital also raised its price target on Astera Labs, Inc. (NASDAQ:ALAB) to $275 from $225 while maintaining a Buy rating. The firm said the company posted another strong revenue beat and guidance increase, supported by ongoing PCIe retimer growth and increasing contributions from PCIe switch products.
Similarly, RBC Capital raised its price target on Astera Labs, Inc. (NASDAQ:ALAB) to $270 from $250 and maintained an Outperform rating. RBC said the quarter was driven by generative AI demand and continued new product ramps. The firm added that Astera Labs’ core PCIe retimer business continues to benefit from the transition to Gen6, while Scorpio-P switch revenue exceeded 20% of total sales during the quarter, with two additional customer ramps expected later this year.
On May 5, 2026, Astera Labs, Inc. (NASDAQ:ALAB) reported Q1 EPS of 61c, ahead of the 54c consensus estimate, while revenue totaled $308.36M compared to expectations of $292.32M. CEO Jitendra Mohan said revenue grew 14% sequentially and 93% year over year to a record $308.4M, driven by strong demand for the company’s PCIe 6 portfolio. Mohan added that adoption of Astera Labs’ Intelligent Connectivity Platform continues to expand through initial shipments of the Scorpio X-Series 320-lane AI scale-up fabric switch, additional design engagements for custom and optical solutions, and growing market share across the company’s PCIe switch and Smart Cable Module portfolio. Mohan also said the company continues investing to strengthen its position in rack-scale AI infrastructure technologies alongside customers.
Astera Labs, Inc. (NASDAQ:ALAB) designs, manufactures, and sells semiconductor-based connectivity solutions for cloud and AI infrastructure.
2. MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI)
On May 8, 2026, Northland analyst Tim Savageaux raised the firm’s price target on MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) to $375 from $300 while maintaining an Outperform rating following what the firm described as a “solidly better” fiscal Q2 and a “step function upside” in Q3 guidance.
Jefferies analyst Blayne Curtis also raised the firm’s price target on MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) to $450 from $295 and maintained a Buy rating after what the firm called a “breakout quarter.” Jefferies said it continues to see upside in the company’s Data Center segment, as well as in Industrial and Defense markets amid expanding defense budgets and stronger expected low-earth orbit satellite deployment activity in FY27.
On May 7, 2026, MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) reported fiscal Q2 adjusted EPS of $1.09, versus the $1.07 consensus estimate, while revenue totaled $288.96M compared to expectations of $284.59M. President and CEO Stephen Daly said the company was pleased with its first-half fiscal year performance and expects strong revenue growth and profitability in the second half of the year.
MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) provides analog semiconductor solutions used in wireless and wireline applications across radio frequency, microwave, millimeter wave, and lightwave technologies.
1. NVIDIA Corporation (NASDAQ:NVDA)
On May 7, 2026, NVIDIA Corporation (NASDAQ:NVDA) and Iren announced a strategic partnership aimed at accelerating the deployment of next-generation AI infrastructure. Under the agreement, the companies plan to support the deployment of up to 5 gigawatts of NVIDIA DSX-aligned AI infrastructure across Iren’s data center pipeline over time. The companies said they will collaborate on deploying NVIDIA accelerated computing within DSX AI factories to expand access for AI-native startups and enterprise customers. As part of the agreement, Iren granted NVIDIA a five-year right to purchase up to 30 million ordinary shares at an exercise price of $70 per share, representing a potential investment of up to $2.1B.
NVIDIA Corporation (NASDAQ:NVDA) and Iren said future deployments are expected to center around Iren’s 2-gigawatt Sweetwater campus in Texas, which is expected to serve as a flagship deployment site for NVIDIA’s DSX architecture. The companies added that the partnership combines NVIDIA’s AI factory architecture with Iren’s expertise in power, land, data centers, GPU deployment, and infrastructure operations.
On May 6, 2026, NVIDIA Corporation (NASDAQ:NVDA) and Corning Incorporated announced a multiyear commercial and technology partnership focused on expanding U.S.-based manufacturing of optical connectivity products used in AI infrastructure. Corning said it plans to increase domestic optical connectivity manufacturing capacity by 10x and expand U.S. fiber production capacity by more than 50% to meet demand from AI infrastructure buildouts. The expansion includes three new manufacturing facilities in North Carolina and Texas and is expected to create more than 3,000 jobs. NVIDIA founder and CEO Jensen Huang said AI is driving what he described as the largest infrastructure buildout in modern history and highlighted the partnership’s role in strengthening U.S. manufacturing and supply chains.
Last month, NVIDIA Corporation (NASDAQ:NVDA) also introduced NVIDIA Ising, a family of open-source quantum AI models designed to help researchers and enterprises develop quantum processors capable of supporting practical applications. The company said the models are intended to improve quantum error correction and calibration while integrating with the NVIDIA CUDA-Q hybrid quantum-classical computing platform and NVQLink QPU-GPU hardware interconnect.
NVIDIA Corporation (NASDAQ:NVDA) operates as a data center-scale AI infrastructure company through its Compute & Networking and Graphics segments.
While we acknowledge the potential of NVDA 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 NVDA and that has 100x upside potential, check out our report about the cheapest AI stock.
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