In this article, we will take a look at the 5 Best Semiconductor Stocks to Buy According to Billionaires. For a deeper discussion and an extended list, please see the 10 Best Semiconductor Stocks to Buy According to Billionaires.
5. Micron Technology, Inc. (NASDAQ:MU)
Number of Billionaire Holders: 35
Micron Technology, Inc. (NASDAQ:MU) is among the Best Semiconductor Stocks.
On June 24, Reuters reported that investors are gearing up for volatility ahead of Micron Technology, Inc. (NASDAQ:MU) earnings, as sharp semiconductor swings and large flows tied to SpaceX are disrupting markets. Analysts forecast the semiconductor firm to post Q3 profit growth exceeding 1000% and revenue jumping nearly 285% YoY, Reuters said.
The stock has surged by 740% over the past year, lifting the market value to $1.20 trillion. Meanwhile, the Nasdaq has dipped more than 5% after a record run, Reuters noted. Chief equity market strategist at Morningstar, Michael Field, said investors are weighing whether the pullback triggers “a domino effect” or proves to be temporary.
Reuters said concerns over stretched valuations are still there, even as AI pushed spending supports earnings. Partner at Cherry Lane Investments in New Vernon, New Jersey, Rick Meckler said growth is real, but assumptions look “extreme.” Meanwhile, Kenny Polcari, who is chief market strategist at Slatestone Wealth, warned stocks “priced for perfection” risk sharp pullbacks if results disappoint.
Micron Technology, Inc. (NASDAQ:MU) provides innovative memory and storage solutions. It operates in the Compute and Networking Business Unit, Mobile Business Unit, Embedded Business Unit, and Storage Business Unit segments.
4. Lam Research Corporation (NASDAQ:LRCX)
Number of Billionaire Holders: 38
On June 11, Barclays analyst Tom O’Malley raised his price target on Lam Research Corporation (NASDAQ:LRCX) to $335 from $275. The analyst maintained an “Overweight” rating on the shares. He pointed out a wafer-fab-equipment capital spending cycle that appears “much stronger across the board.” O’Malley said industry sales could exceed $200 billion in 2027. He also added that investors have already shifted their focus toward 2028 demand projections.
On June 23, BofA raised Lam Research Corporation (NASDAQ:LRCX)’s price target to $480 from $330. The analyst is bullish and maintains a “Buy” rating on the stock. BofA updated semiconductor industry models and lifted its 2030 total addressable market forecast to $2.7 trillion from $2.3 trillion. The firm attributed the increase primarily to expected growth in memory and data-center markets, along with a recovery in automotive and industrial demand.
Lam Research Corporation (NASDAQ:LRCX) designs, manufactures, markets, and provides semiconductor processing equipment used in the fabrication of integrated circuits. It functions through United States, China, Europe, Japan, Korea, Southeast Asia and Taiwan segments.
3. Broadcom Inc. (NASDAQ:AVGO)
Number of Billionaire Holders: 41
Broadcom Inc. (NASDAQ:AVGO) is among the Best Semiconductor Stocks.
On June 5, Bloomberg reported that Broadcom Inc. (NASDAQ:AVGO) is shifting away from acquisitions since Chief Executive Officer Hock Tan stated that accelerating artificial intelligence growth is a stronger driver of returns. Tan said at the Bloomberg Tech conference that “artificial intelligence revenue is surging” and that “what can I buy that would come close to that?”
Tan told Bloomberg that acquisitions can distract both the company and its customers. He also commented that demand for AI infrastructure remains “almost insatiable.” He stressed the firm’s focus on supplying networking gear and custom accelerators that power AI systems, projecting that segment could exceed $100 billion in revenue by fiscal 2027.
The pivot marks a break from Broadcom Inc. (NASDAQ:AVGO)’s deal-centric strategy, following acquisitions including VMware, Symantec Enterprise Security, and CA Technologies since 2016.
Bloomberg reported that shares fell on June 4 after the corporation issued a forecast that disappointed Wall Street. Tan called the environment “very surreal” and said that he remains focused on “fundamentals” rather than stock price swings.
Broadcom Inc. (NASDAQ:AVGO) is a multinational technology business that designs, develops, and sells semiconductors and infrastructure software solutions. It works through Semiconductor Solutions and Infrastructure Software divisions.
2. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Billionaire Holders: 53
On June 10, Bloomberg reported that Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) posted a 30% jump in May sales because of sustained demand tied to global artificial intelligence infrastructure buildouts. The company had May revenue of NT$416.98 billion ($13.2 billion). Bloomberg calculations showed combined April and May sales rising about 24% YoY.
Analysts expect second-quarter sales to jump roughly by 35%, Bloomberg reported. The report said TSMC has become a critical supplier for AI chips. It is producing semiconductors for companies including Nvidia and Advanced Micro Devices as major tech firms ramp up spending.
Chief Executive Officer C.C. Wei told shareholders earlier this month that global chip supply will remain limited for years, similar to Nvidia CEO Jensen Huang, who said supply remains tight.
Bloomberg noted that TSMC raised its whole-year outlook in April. The firm expects capital spending to be toward the upper end of its forecast of up to $56 billion in 2026. It also pointed out exposure to weaker smartphones and consumer demand.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) manufactures and sells integrated circuits and wafer-based semiconductor devices.
1. NVIDIA Corporation (NASDAQ:NVDA)
Number of Billionaire Holders: 53
NVIDIA Corporation (NASDAQ:NVDA) is among the Best Semiconductor Stocks.
On June 15, CNBC reported that NVIDIA Corporation (NASDAQ:NVDA) plans to raise at least $20 billion through an investment-grade bond sale, marking its first such issuance since 2021. CNBC noted an SEC filing and sources familiar with the matter. The filing disclosed the offering without a size, while sources said the total could approach $25 billion.
An Nvidia spokesperson told CNBC the company will use proceeds for “general corporate purposes,” including refinancing existing debt. The AI chipmaker has about $7.5 billion in long-term debt and $1 billion in short-term debt.
Shares rose 3.5% on Monday. Growth has accelerated sharply, and revenue reached $216 billion in fiscal 2026 as compared to $27 billion in fiscal 2022.
CNBC reported NVIDIA Corporation (NASDAQ:NVDA) had $49 billion in free cash flow in its latest quarter, from $35 billion a year before. It is also planning to return roughly half of its free cash flow to shareholders this year.
NVIDIA Corporation (NASDAQ:NVDA) designs and manufactures computer graphics processors, chipsets, and related multimedia applications. It functions in graphics processing unit and compute and networking 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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