In this article, we will list the 5 Most Oversold Semiconductor Stocks to Buy Now. Please visit 11 Most Oversold Semiconductor Stocks to Buy Now if you’d like to see an extended list and how we came up with the list of most oversold semiconductor stocks.
5. Allegro MicroSystems, Inc. (NASDAQ:ALGM)
Allegro MicroSystems, Inc. (NASDAQ:ALGM) is one of the 11 most oversold semiconductor stocks to buy now.
As of March 13, 2026, analyst sentiment on Allegro MicroSystems, Inc. (NASDAQ:ALGM) remains robust, as over 90% of covering analysts remain bullish on the stock. The consensus price target of $45 implies approximately 45% upside.
Following the company’s analyst day in Boston, Allegro MicroSystems, Inc. (NASDAQ:ALGM) drew attention from analysts at BofA on February 19, 2026. Analyst confidence stemmed from management’s attractive three-to-five-year model, which featured mid-teens sales growth, 55% gross margins, and roughly $2 in long-term EPS. The firm raised its price target from $42 to $45 and maintains a “Buy” rating on the stock.
A semiconductor. Photo by Tima Miroshnichenko on Pexels
Meanwhile, as semiconductor demand is recovering and long-term trends are steadily boosting chip demand, analysts at Morgan Stanley are growing more confident in the company’s outlook. The firm says semiconductor demand is particularly heavy in both electric and internal combustion vehicles. Furthermore, recovering auto and industrial demand is further bolstering the need for the company’s chips. Accordingly, the firm expects outperformance and margin expansion in 2026 and 2027, reinforcing its bullish outlook on the stock.
Allegro MicroSystems, Inc. (NASDAQ:ALGM) focuses on the development of sensor and analog power ICs, which measure motion, speed, position, and current. The company also develops motor drivers and power management chips.
4. Microchip Technology Incorporated (NASDAQ:MCHP)
Microchip Technology Incorporated (NASDAQ:MCHP) is one of the 11 most oversold semiconductor stocks to buy now.
Amid the expansion of its security-focused solutions, Microchip Technology Incorporated (NASDAQ:MCHP) announced the expansion of its Trust platform on March 10, 2026.
The update includes the TA101 TrustFLEX secure authentication IC and the TA101 TrustMANAGER platform, integrating hardware-based authentication alongside scalable cryptographic key management and firmware-over-the-air update capabilities. The solutions will serve industrial and automotive systems addressing emerging cybersecurity requirements, which include compliance with the EU Cyber Resilience Act and automotive cybersecurity standards.
The Trust platform provides flexible deployment models targeted at manufacturers building connected products and software-defined vehicle architectures. Factory-preconfigured for common security use cases, TrustFLEX devices work alongside TrustMANAGER, which integrates with the keySTREAM platform from Kudelski Labs to facilitate cloud-based cryptographic key lifecycle management and secure firmware updates. According to Microchip Technology Incorporated (NASDAQ:MCHP), the platform creates a hardware-rooted chain of trust from production to deployment, enabling developers to simplify the implementation process while ensuring adherence across industrial and automotive markets.
Microchip Technology Incorporated (NASDAQ:MCHP) develops semiconductor products, including microcontrollers, analog and connectivity devices, and timing solutions. The company also generates licensing income from its SuperFlash embedded flash and Smartbits technologies segments.
3. CEVA, Inc. (NASDAQ:CEVA)
CEVA, Inc. (NASDAQ:CEVA) is included in our list of the 11 most oversold semiconductor stocks to buy now.
Amid its connectivity portfolio advancements, on March 10, 2026, CEVA, Inc. (NASDAQ:CEVA) introduced its Ceva-Waves UWB IP, describing it as the industry’s first IEEE 802.15ab-compliant Ultra-Wideband intellectual property solution. The technology delivers up to 30x stronger ranging capabilities and data rates that are 4x faster than prior versions.
The solution utilizes multi-millisecond ranging techniques that fuse UWB-based and narrowband-assisted architectures, while retaining backward compatibility with IEEE 802.15.4z deployments and including support for enhanced sensing and data communications features introduced with the IEEE 802.15.4ab standard.
While discussing the growing industry demand for ultra-wideband technology, the company cited data from ABI Research, which indicates that UWB shipments surpassed 563 million units in 2025 and are expected to exceed 1.4 billion units annually by 2030. In the early phases, Ceva Inc. is working with LitePoint to design test and measurement solutions for the IEEE 802.15.4ab standard. With this, CEVA, Inc. (NASDAQ:CEVA) aims to ensure interoperability and speed up time-to-market for device manufacturers. The technology supports applications in secure access, positioning, radar sensing, and data communications across consumer, automotive, and industrial systems.
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.
2. Ambarella, Inc. (NASDAQ:AMBA)
Ambarella, Inc. (NASDAQ:AMBA) is one of the 11 most oversold semiconductor stocks to buy now.
As Ambarella, Inc. (NASDAQ:AMBA) advances its edge artificial intelligence strategy, the company mapped out plans to expand its Edge AI business on March 11, 2026, in remarks delivered at the Cantor Fitzgerald Global Technology and Industrial Growth Conference.
The company highlighted the swift growth of its AI-driven semiconductor platform, with 80% of its revenue now derived from Edge AI solutions, a segment that grew 50% last year. It has shipped 42 million Edge AI processors and supports 370 AI customer projects in production.
Ambarella, Inc. (NASDAQ:AMBA) is also introducing indirect sales channels to target smaller customers and advancing a semi-custom chip initiative, including a two-nanometer design projected to begin generating revenue in early fiscal 2028, to expand its reach.
The development comes as the company’s recent financial performance mirrors similar AI-driven momentum.
On February 26, 2026, Ambarella, Inc. (NASDAQ:AMBA) reported record fiscal 2026 revenue of $390.70 million, up 37.20% year-over-year, with fourth-quarter revenue totaling $100.90 million, reflecting a 20.10% increase from the same period last year.
Ambarella, Inc. (NASDAQ:AMBA) develops low-power system-on-a-chip, or SoC, semiconductors and software for edge artificial intelligence, or AI, applications.
1. indie Semiconductor, Inc. (NASDAQ:INDI)
indie Semiconductor, Inc. (NASDAQ:INDI) is included in our list of the 11 most oversold semiconductor stocks to buy now.
Positive analyst sentiment continues to surround indie Semiconductor, Inc. (NASDAQ:INDI)’s stock, as 86% of analysts maintain bullish ratings on the stock as of March 13, 2026. The consensus price target of $6.00 implies 141.94% upside potential.
On March 4, 2026, indie Semiconductor, Inc. (NASDAQ:INDI) announced the pricing of $150 million of 4.00% convertible senior notes due 2031 via a private offering to qualified institutional buyers.
indie Semiconductor, Inc. (NASDAQ:INDI) granted initial purchasers a 13-day option to purchase up to an additional $25.0 million in notes, with net proceeds estimated at approximately $145.1 million, rising to $169.4 million, in the event that the option is fully exercised.
It plans to use $107.8 million of the proceeds to repurchase $104 million of principal of its 4.50% convertible senior notes due 2027. Meanwhile, the remaining proceeds will be used for working capital and general corporate purposes, including potential acquisitions.
indie Semiconductor, Inc. (NASDAQ:INDI) develops automotive and software solutions for ADAS, driver automation, electrification, and in-cabin user experience, while expanding its portfolio of edge sensors, consisting of lidar, radar, ultrasound, and computer vision.
While we acknowledge the potential of INDI 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 INDI and that has 100x upside potential, check out our report about the cheapest AI stock.
READ NEXT: 40 Most Popular Stocks Among Hedge Funds Heading Into 2026 and Cathie Wood’s 10 Stock Picks with Huge Upside Potential.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
