In this piece we will look at the 5 Best Small-Cap Semiconductor Stocks to Buy Right Now. Please visit 8 Best Small-Cap Semiconductor Stocks to Buy Right Now if you’d like to see an extended list and how we came up with the list of Best Small-Cap Semiconductor Stocks to Buy Right Now.
5. CEVA, Inc. (NASDAQ:CEVA)
Market Cap: $1.18 billion
Number of Hedge Fund Holders: 19
CEVA, Inc. (NASDAQ:CEVA) is one of the Best Small-Cap Semiconductor Stocks to Buy Right Now. Recently, on June 15, Needham initiated CEVA, Inc. (NASDAQ:CEVA) with a Buy rating and a $55 price target.
The stock has gained roughly 4% over the past month, mainly due to the strong momentum from Q1 2026 earnings. The company witnessed licensing growth during the quarter and also raised the full-year guidance to the top end of its 8% to 12% growth range.
Needham sees CEVA as an attractive play on the emerging Physical AI sector. The firm believes that Physical AI requires a much broader set of semiconductors beyond just compute and memory. The company is well positioned in this sector and holds a 68% global market share in wireless connectivity, alongside strong positions in sensing and DSP/NPU technology.
Needham acknowledges that widespread Physical AI adoption is likely still more than two years away, but remains bullish on the stock, expecting significant upside in the near-term.
CEVA, Inc. (NASDAQ:CEVA) delivers silicon and software IP that facilitates smart edge devices to connect, sense, and process data. Established in 1999, the company is based in Rockville, Maryland.
4. Alpha and Omega Semiconductor Limited (NASDAQ:AOSL)
Market Cap: $1.32 billion
Number of Hedge Fund Holders: 20
Alpha and Omega Semiconductor Limited (NASDAQ:AOSL) is one of the Best Small-Cap Semiconductor Stocks to Buy Right Now. Alpha and Omega Semiconductor Limited (NASDAQ:AOSL) has gained more than 122% year-to-date and more than 17% since the company’s fiscal Q3 2026 earnings release on May 7.
During the quarter, the company posted $163.79 million in revenue, ahead of the expected $160.08 million. The company is accelerating investments in higher-value power management solutions for AI servers and data centers to capture growing content gains in premium segments.
Recently, on June 25, Lake Street initiated coverage of Alpha and Omega Semiconductor Limited (NASDAQ:AOSL) with a Buy rating and a $58 price target. The firm noted the company to be an undervalued AI player and argued that despite having a growing presence in AI data centers, the stock trades at a meaningful discount compared to its power semiconductor peers.
As a pure-play power semiconductor company, AOSL is directly exposed to the surging demand for power management solutions in AI infrastructure. Lake Street highlights that the company’s AI data center business is expanding and that overall growth is reaccelerating.
Alpha and Omega Semiconductor Limited (NASDAQ:AOSL) is involved in the design, development, and supply of power semiconductor products for computing, communication, consumer electronics, and industrial applications. Its operations are divided into the following geographical segments: Hong Kong, China, South Korea, the United States, and Other Countries.
3. Everspin Technologies, Inc. (NASDAQ:MRAM)
Market Cap: $509.98 million
Number of Hedge Fund Holders: 20
Everspin Technologies, Inc. (NASDAQ:MRAM) is one of the Best Small-Cap Semiconductor Stocks to Buy Right Now. Everspin Technologies, Inc. (NASDAQ:MRAM) has gained more than 138% over the past 6 months. The gains have been driven by major US defense contracts and the company’s domestic manufacturing partnerships.
The company, earlier in late April, announced securing a $40 million subcontract spanning over 2.5 years with a US prime contractor. As per the contract, Everspin will provide technology and engineering services for the defense industrial base.
More recently, on June 9, Everspin Technologies, Inc. (NASDAQ:MRAM) announced that the stock is expected to be added to the US small-cap Russell 2000 Index effective June 27, 2026, as part of the annual Russell index reconstitution. MRAM has officially joined the Russell 2000 index.
Management noted that the inclusion is based on membership in the broader Russell 3000 Index, determined by market capitalization and style attributes. Everspin will also be automatically added to relevant growth and value style indexes. The Russell 2000 is widely tracked by institutional investors and index funds, with approximately $12.2 trillion in assets benchmarked against Russell US indexes. Being added broadens the company’s exposure to this large pool of capital.
Everspin Technologies, Inc. (NASDAQ:MRAM) develops and manufactures magnetoresistive random-access memory products for industrial, data center, automotive, aerospace, and other mission-critical applications.
2. Photronics, Inc. (NASDAQ:PLAB)
Market Cap: $1.81 billion
Number of Hedge Fund Holders: 27
Photronics, Inc. (NASDAQ:PLAB) is one of the Best Small-Cap Semiconductor Stocks to Buy Right Now. Photronics, Inc. (NASDAQ:PLAB) has declined roughly 10% since its fiscal Q2 2026 earnings, in which the company missed EPS and revenue estimates. However, despite the decline, Wall Street continues to anticipate more than 40% upside over the next 12-months.
During fiscal Q2 2026, the company reported revenue of $209.94 million, which fell below the estimates of $216.03 million. The EPS of $0.42 also fell below the $0.53 consensus. The revenue remained flat year-over-year and was led down by the IC business, which declined 5% to $148 million, mainly due to delayed design releases caused by high fab utilization, memory supply constraints, and geopolitical uncertainty. On the bright side, the Flat Panel Display segment revenue grew 13% to $62 million, driven by strong AMOLED demand in China and seasonal recovery in Korea.
Following the earnings release on May 29, Craig-Hallum lowered the price target on Photronics, Inc. (NASDAQ:PLAB) from $48 to $42, while maintaining a Buy rating on the shares. The firm noted that the cut reflects near-term headwinds rather than a change in long-term conviction. The firm pointed to second-quarter softness and cautious third-quarter guidance, driven by weak IC demand, memory supply constraints, and geopolitical uncertainty that delayed design releases. However, management noted early signs of a tape-out recovery starting in May.
Photronics Inc. (NASDAQ:PLAB) is a leading manufacturer of photomasks, essential components in the semiconductor fabrication process. Photomasks are high-precision quartz plates that contain microscopic images of electronic circuits. The company produces photomasks for various applications, including integrated circuits (ICs), flat panel displays (FPDs), and other advanced technologies.
1. SkyWater Technology, Inc. (NASDAQ:SKYT)
Market Cap: $1.27 billion
Number of Hedge Fund Holders: 33
SkyWater Technology, Inc. (NASDAQ:SKYT) is one of the Best Small-Cap Semiconductor Stocks to Buy Right Now. SkyWater Technology, Inc. (NASDAQ:SKYT) has gained more than 89% over the past 6-months. The gains have been driven by the company’s strong revenue growth in fiscal 2025 and the pending merger with IonQ, expected to be closed in the second or third quarter of 2026.
Last month, on May 8, the company announced that its shareholders approved the company’s merger agreement with IonQ, clearing a key milestone in the acquisition process. Final voting results will be filed with the SEC. Under the terms, SkyWater shareholders will receive $35.00 per share, comprising $15.00 in cash and a stock component tied to IonQ’s trading price within a defined collar range.
According to a bullish thesis on the stock by The Mispricing Desk’s Substack, SKYT still trades at a small discount to the $35 mark. This reflects timing uncertainty around regulatory clearance and short-term volatility in IonQ’s share price, which affects the stock portion of the deal. Analysts view this as a structural and timing risk rather than any fundamental concern about the deal itself.
SkyWater Technology Inc. (NASDAQ:SKYT) is a U.S.-based semiconductor foundry specializing in advanced semiconductor development, manufacturing, and packaging services for integrated circuits. The company offers a unique, pure-play technology foundry model through its Technology-as-a-Service (TaaS) approach. SkyWater provides a range of services, including custom semiconductor design, fabrication, and packaging, serving sectors such as aerospace, defense, automotive, and industrial applications.
While we acknowledge the potential of SKYT 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 SKYT and that has 100x upside potential, check out our report about the cheapest AI stock.
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