In this article, we will list the 5 Most Buzzing AI Semiconductor Stocks to Buy in 2026. Please visit 10 Most Buzzing AI Semiconductor Stocks to Buy in 2026 if you would like to see the extended list and the methodology behind it.
5. FormFactor, Inc. (NASDAQ:FORM)
Stock Upside Potential: 30.79%
Number of Hedge Fund Holders: 37
FormFactor, Inc. (NASDAQ:FORM) is one of the most buzzing AI semiconductor stocks to buy in 2026. On May 12, analysts at Craig-Hallum upgraded FormFactor Inc. (NASDAQ:FORM) to a Buy from a Hold with a $175 price target.
The price target represents 35 times the company’s potential earnings of $5 per share on $1.6 billion in revenue. Additionally, the stock has delivered a return of over 250% over the past year.
The upgrade comes on the heels of the company’s first-quarter revenue growing sequentially and hitting a second consecutive all-time high. In addition, gross margin and earnings per share came above the high end of the outlook range.
Earnings per share totaled $0.56, better than the $0.44 expected, while revenue reached $226.1 million, better than the $203.84 million expected. The better-than-expected results came as FormFactor delivered record DRAM revenue on increased demand in HBM applications.
Additionally, FormFactor is benefiting from an increase in Foundry & Logic demand driven by growth in probe cards and networking applications.
FormFactor, Inc. (NASDAQ:FORM) is a leading provider of essential test and measurement technologies for the semiconductor industry. They design and manufacture critical hardware and software—such as wafer probe cards and analytical probe stations—that enable chipmakers to validate integrated circuits (ICs) and detect defects before packaging.
4. Cohu, Inc. (NASDAQ:COHU)
Stock Upside Potential: 34.87%
Number of Hedge Fund Holders: 28
Cohu Inc. (NASDAQ:COHU) is one of the most buzzing AI semiconductor stocks to buy in 2026. On May 12, Cohu Inc. (NASDAQ:COHU) confirmed it has received multiple orders worth about $5 million for the Diamondx platform, which delivers high current capability and scalable multi-site throughput.
The leading semiconductor manufacturer behind the orders plans to use the platform to support the development and manufacturing of next-generation gallium nitride power devices for use in AI data center power architectures. In addition, the orders are poised to expand Cohu’s position in the fast-growing AI Data center market.
The $5 million in orders also underscores the company’s product portfolio’s ability to meet rising demand for higher power and higher-efficiency power conservation. Cohu’s platforms are designed to support the full life cycle of GaN power devices as data center operators increasingly re-architect power delivery to improve efficiency.
The Diamondx test configurations designed for power devices enable high-precision characterization and production testing of GaN devices used in AI data center power stages.
“GaN devices offer compelling efficiency and power density advantages, and the DiamondX platform enables customers to test accurately and economically at scale as they move from device characterization to high-volume production,” said Luis Müller, Cohu President and CEO.
Cohu, Inc. (NASDAQ:COHU) is a global supplier of semiconductor industry equipment and software. They specialize in “back-end” manufacturing—building the machinery, automation systems, and analytics platforms that test, inspect, and handle microchips before they are shipped to electronics manufacturers.
3. Diodes Incorporated (NASDAQ:DIOD)
Stock Upside Potential: 38.13%
Number of Hedge Fund Holders: 25
Diodes Incorporated (NASDAQ:DIOD) is one of the most buzzing AI semiconductor stocks to buy in 2026. On May 7, Diodes Inc. (NASDAQ:DIOD) delivered impressive first-quarter 2026 results. The company benefited from solid demand recovery and momentum across key focus areas of automotive, industrial, and AI server-related applications.
First-quarter revenue was up 22% year over year to $405.5 million, compared to $391.6 million in the prior quarter. Adjusted net income more than doubled to $19.8 million compared to $8.8 million in Q1 2025. Earnings per share came in at $0.43, up from $0.19 a share delivered the same quarter last year.
The first quarter marked the fifth consecutive quarter of double-digit growth as Diodes continues to benefit from increased opportunities and orders from automotive customers, as well as an improved outlook across industrial applications.
Diodes expects the underlying growth momentum to continue in the second quarter, with revenue expected to increase 18.8% to $435 million. It would mark the sixth consecutive quarter of double-digit year-over-year growth.
Diodes Incorporated (NASDAQ:DIOD) is a global manufacturer and supplier of discrete, logic, analog, and mixed-signal semiconductors. Their electronic components control, manage, and protect the flow of power and data in modern electronics.
2. ASE Technology Holding Co., Ltd. (NYSE:ASX)
Stock Upside Potential: 39.20%
Number of Hedge Fund Holders: 18
ASE Technology Holding Co., Ltd. (NYSE:ASX) is one of the most buzzing AI semiconductor stocks to buy in 2026. On April 29, ASE Technology Holding Co., Ltd. (NYSE:ASX) delivered solid first-quarter 2026 financial results characterized by growth in packaging testing and EMS operations.
Net revenue was up 17.2% to NT$173.66 billion, while net income increased to NT$14.14 billion from NT$7.554 billion in 1Q25. The robust revenue growth was driven by a 29.7% year-over-year increase in ATM segment revenue to NT$112.43 billion, which helped offset a 0.7% decline in EMS revenue to NT$61.88 billion.
On the other hand, net revenues from packaging operations accounted for 51% of total revenues, with testing operations accounting for 12%, EMS operations for 36%, and others for 1%. Diluted earnings per share for the quarter also improved to NT$3.08 (or US$0.195 per ADS), compared to NT$1.64 for 1Q25. Gross margin improved to 20.1% from 19.5% in the prior quarter.
ASE Technology Holding Co., Ltd. (NYSE:ASX) is the world’s largest independent provider of semiconductor manufacturing services, specializing in outsourced assembly and testing (OSAT). The company packages silicon wafers into finished, protected microchips and offers full electronic manufacturing services, acting as a crucial supply chain partner for global tech and electronics brands.
1. Himax Technologies, Inc. (NASDAQ:HIMX)
Stock Upside Potential: 55.52%
Number of Hedge Fund Holders: 11
Himax Technologies, Inc. (NASDAQ:HIMX) is one of the most buzzing AI semiconductor stocks to buy in 2026. On May 7, Himax Technologies, Inc. (NASDAQ:HIMX) reiterated that it expects growth momentum to persist throughout the year, driven by new automotive projects and growth in the non-drive IC business.
The company is increasingly focusing on key growth areas of smart glasses, ultralow power AI, and CPO as it also navigates an uncertain macro environment. The emerging technologies are well poised to diversify the company’s revenue base and deliver attractive gross margins. The sentiments come against the backdrop of solid first-quarter results, whereby revenue totaled $199 million, a slight 2% sequential decline.
Operating profit came in at $10.2 million, with an operating margin of 5.1%, up from 3.4% in last year’s same quarter. After tax profit improved to $8 million or 4.6 cents per diluted ADS compared to $6.3 million or 3.6 cents per diluted ADS last quarter.
Similarly, the company’s board has approved a cash dividend of 25.2 cents per ADS. The dividend is to be paid on July 10, 2026, to shareholders of record as of June 30, 2026.
“Since our IPO in 2006, we have consistently rewarded shareholders for their ongoing commitment with our dividend policy,” said Mr. Jordan Wu, President and Chief Executive Officer of Himax. “This year, we are pleased to declare an annual cash dividend of 25.2 cents per ADS, representing a payout ratio of 100.0% of last year’s profit. The high payout ratio reflects our healthy balance sheet and positive outlook for cash flow generation over the next few years.
Himax Technologies, Inc. (NASDAQ:HIMX) is a fabless semiconductor company that specializes in display imaging processing technologies. It designs and sells critical components, such as display driver ICs and timing controllers that are essential for powering screens in consumer electronics, automotive displays, and augmented reality (AR) devices.
While we acknowledge the potential of HIMX 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 HIMX and that has 100x upside potential, check out our report about the cheapest AI stock.
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