On January 6, CNBC reported that semiconductor stocks started the year strongly, driven primarily by rising demand from AI. The rally was led by South Korea’s SK Hynix Inc. (KRX:000660) and Samsung Electronics Co., Ltd. (KRX:005930), two of the world’s biggest memory makers. The companies gained 11.5% and 15.9% respectively, year-to-date as of January 6.
Memory is a core component in the chips used to train and operate AI models. As major tech companies continue to invest billions of dollars in AI chips and data centers, demand for memory is increasing. This has led to a supply shortage.
One critical component, known as dynamic random-access memory or DRAM, which is used in AI data centers, experienced a significant price increase in 2025. According to Counterpoint Research, memory prices are forecasted to increase by another 40% through the second quarter of 2026.
Ben Barringer, head of technology research at Quilter Cheviot, told CNBC that the recent gains across semiconductor stocks have been mainly driven by “the memory side of the market rather than logic chips.” He said:
“We’re seeing a combination of very strong demand from AI workloads and relatively constrained supply, particularly in high-bandwidth memory, which is essential for training and running large AI models.”
With this context in mind, let’s now take a look at the 6 best semiconductor penny stocks to buy now.
Our Methodology
To compile our list of the 6 best semiconductor penny stocks to buy now, we used the Finviz stock screener to look for semiconductor stocks with a share price of under $5 as of January 15, 2026. Next, we focused on the top 6 stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q3 2025 database of 978 elite hedge funds. Finally, the 6 best semiconductor penny stocks to buy were ranked in ascending order based on the number of hedge funds holding stakes in them as of Q3 2025.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
6 Best Semiconductor Penny Stocks to Buy Now
6. Peraso Inc. (NASDAQ:PRSO)
Share Price: $1.00
Number of Hedge Fund Holders: 2
Peraso Inc. (NASDAQ:PRSO) is one of the best semiconductor penny stocks to buy now. On December 5, Benchmark reiterated a Speculative Buy rating on Peraso Inc. (NASDAQ:PRSO) with a $3 price target. The firm pointed to stronger adoption trends across multiple markets as a key factor for its positive outlook.
Benchmark highlighted that Peraso Inc.’s (NASDAQ:PRSO) pre-production products rose to a record 12, up from 7 in the previous quarter. This increase shows a growing commercial pipeline. The firm also noted that the company has secured an order from a major global Fixed Wireless Access (FWA) equipment provider that serves key service operators.
The research firm also pointed out that growing interest in 6 GHz technology is creating new opportunities for Peraso Inc. (NASDAQ:PRSO). Additionally, recently completed field trials for next-generation tactical communications have led to increased engagement from defense customers. The company is also seeing activity in related markets Edge AI, last-mile delivery, drones, and autonomous vehicles.
In other news, on December 23, Peraso Inc. (NASDAQ:PRSO) announced that it is appointing Cees Links, a veteran wireless entrepreneur and technology executive, to its board of directors.
Peraso Inc. (NASDAQ:PRSO) specializes in high-performance 60 GHz unlicensed and 5G mmWave wireless technology. The company provides chipsets, modules, software, and IP to support various applications such as fixed wireless access, military, immersive video, and factory automation.
5. SmartKem, Inc. (NASDAQ:SMTK)
Share Price: $1.10
Number of Hedge Fund Holders: 2
SmartKem, Inc. (NASDAQ:SMTK) is one of the best semiconductor penny stocks to buy now. On January 6, SmartKem, Inc. (NASDAQ:SMTK) reported that it entered into a 12-month paid proof-of-concept agreement with a global consumer electronics company. The partnership will focus on developing next-generation smart wearable devices that use a conformable MicroLED display powered by SmartKem, Inc.’s (NASDAQ:SMTK) proprietary organic thin-film transistor (OTFT) technology.
The partnership aims to build curved surface wearable devices using OTFT-based MicroLED display technology to address key challenges in the wearables market, including extreme miniaturization, low power consumption, outdoor visibility, and high resistance to impact. This project will combine SmartKem, Inc.’s (NASDAQ:SMTK) proprietary OTFT technology with MicroLEDs using a “chip-first” design to target one of the smallest and most demanding form factors in consumer electronics.
Previously, on December 10, SmartKem, Inc. (NASDAQ:SMTK) shared that it has developed the world’s first all-organic-transistor (AOT) biometric sensor. This technology, which was developed in collaboration with the SJTU, significantly enhances the sensitivity of optical detection for flexible biometric use cases, such as finger or palm print recognition on curved surfaces.
According to the report by SmartKem, Inc. (NASDAQ:SMTK), this new technology also has the potential to address challenges like fingerprint spoofing through advanced liveness detection methods that can catch subtle signals that tell apart real fingerprints from fake ones.
SmartKem, Inc. (NASDAQ:SMTK) is a semiconductor company that focuses on the development of a new class of transistor using its proprietary advanced semiconductor materials.
4. Mobix Labs, Inc. (NASDAQ:MOBX)
Share Price: $0.23
Number of Hedge Fund Holders: 6
Mobix Labs, Inc. (NASDAQ:MOBX) is one of the best semiconductor penny stocks to buy now. On January 5, Mobix Labs, Inc. (NASDAQ:MOBX) announced that it is appointing Amir Asvadi as the General Manager of the company’s EMI product line and defense manufacturing operations. Asvadi has many years of experience leading business units at publicly traded companies that serve the defense and aerospace markets.
According to the report, Mobix Labs, Inc. (NASDAQ:MOBX) is also working to expand its defense manufacturing facilities and grow its EMP product line. Asvadi’s operational focus and leadership skills are expected to support faster and more consistent execution.
Mobix Labs, Inc. (NASDAQ:MOBX) also confirmed that it plans to move into a larger, military-approved facility. The new site will support higher production capacity and help meet growing demand.
The planned facility aims to bring the company’s West Coast operations together under one roof. This move will help streamline production, manufacturing, and daily operations while also improving coordination and overall operational efficiency.
Mobix Labs, Inc. (NASDAQ:MOBX) is a fabless semiconductor company specializing in the supply of advanced connectivity solutions for aerospace, defense, AI, and 5G infrastructure markets.
3. SEALSQ Corp (NASDAQ:LAES)
Share Price: $4.71
Number of Hedge Fund Holders: 7
SEALSQ Corp (NASDAQ:LAES) is one of the best semiconductor penny stocks to buy now. On January 13, SEALSQ Corp (NASDAQ:LAES) reported its financial highlights for the 2025 fiscal year. The company reported preliminary unaudited revenue of $18 million for the year, marking a 66% growth year-over-year. SEALSQ Corp (NASDAQ:LAES) generated $8 million in the fourth quarter, compared to $4 million in the same period last year.
This strong growth was mainly driven by renewed demand for the company’s traditional products and the consolidation of 5 months of revenue from IC’ALPS, which SEALSQ Corp (NASDAQ:LAES) acquired on August 4, 2025. Throughout the 2025 fiscal year, the company continued to advance its commercial base and technological roadmap. However, revenue was still negatively affected by the ongoing transition from legacy products to next-generation post-quantum semiconductors and software.
SEALSQ Corp (NASDAQ:LAES) also reported a growing business pipeline, which now totals more than $200 million in potential revenue opportunities for the period from 2026 to 2028. Over $60 million of these opportunities are from QS7001 and Qvault TPM products. This shows increasing global demand for quantum-resistant security solutions and sovereign semiconductor design.
Earlier, on December 18, Cantor Fitzgerald initiated coverage on SEALSQ Corp (NASDAQ:LAES) with an Overweight rating and a price target of $7. The research firm identified quantum computing security risks as a key factor supporting the company’s future outlook. According to Cantor Fitzgerald, SEALSQ Corp’s (NASDAQ:LAES) focus on developing post-quantum technology solutions across both hardware and software can help address these risks.
SEALSQ Corp (NASDAQ:LAES) is a semiconductor company and a leading innovator in Post-Quantum Technology hardware and software solutions.
2. Valens Semiconductor Ltd. (NYSE:VLN)
Share Price: $2.22
Number of Hedge Fund Holders: 12
Valens Semiconductor Ltd. (NYSE:VLN) is one of the best semiconductor penny stocks to buy now. On January 6, Valens Semiconductor Ltd. (NYSE:VLN) reported that it has secured a new design win for its VA7000 MIPI A-PHY-compliant chipsets. These chipsets will be used in advanced driver-assistance systems (ADAS) by a premium global automotive manufacturer serving the Chinese market.
MIPI A-PHY is the first standardized solution designed for high-speed sensor connectivity and is currently the only standard to achieve design wins across multiple silicon suppliers. This new win highlights the growing adoption of the connectivity standard for next-generation ADAS and autonomous vehicle systems. Valens Semiconductor Ltd. (NYSE:VLN) now has four A-PHY design wins worldwide. The automotive manufacturer plans to integrate the VA7000 chipsets into its vehicles, with the start of production scheduled for 2027.
Previously, on December 2, Valens Semiconductor Ltd. (NYSE:VLN) announced, with imavix engineering, the first production-ready platform based on the MIPI A-PHY standard for use in machine vision applications. The platform is intended to help camera vendors design smaller, more robust, and more cost-effective products than traditional machine vision cameras.
According to the report, CIS Corporation, a Japanese imaging solutions company, introduced the first A-PHY camera module for machine vision based on this platform. The new camera measures just 22mm × 22mm × 22mm, making it less than half the size of commonly used machine vision cameras despite offering significant improvements in electromagnetic compatibility (EMC) robustness.
Valens Semiconductor Ltd. (NYSE:VLN) is an Israeli fabless manufacturing company that focuses on high-performance connectivity. The company provides semiconductor solutions to the automotive and audio-video industries.
1. GCT Semiconductor Holding, Inc. (NYSE:GCTS)
Share Price: $1.08
Number of Hedge Fund Holders: 17
GCT Semiconductor Holding, Inc. (NYSE:GCTS) is one of the best semiconductor penny stocks to buy now. On January 13, H.C. Wainwright reiterated its Buy rating on GGCT Semiconductor Holding, Inc. (NYSE:GCTS) with a price target of $3 on the stock.
Previously, on January 6, GCT Semiconductor Holding, Inc. (NYSE:GCTS) reported the first commercial shipment of its 5G chipset to the company’s lead customers. This update comes after the chipset was successfully qualified and adopted. The launch of commercial shipments of 5G chipsets marks an important step in the company’s 5G revenue growth trajectory.
According to the report, the recent launch of GoGo’s 5G air-to-ground network supports demand for GCT Semiconductor Holding, Inc.’s (NYSE:GCTS) 5G technology. The development strengthens the company’s position for expanded 5G commercialization and increased market penetration in 2026 and beyond.
John Schlaefer, CEO of GCT Semiconductor Holding, Inc. (NYSE:GCTS), highlighted that customer feedback has been very positive and that the company is “seeing strong interest across multiple 5G applications.”
GCT Semiconductor Holding, Inc. (NYSE:GCTS) is a fabless designer that delivers advanced 5G and 4G LTE semiconductor solutions.
While we acknowledge the potential of GCTS as an investment, 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 GCTS and that has a 100x upside potential, check out our report about the cheapest AI stock.
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Disclosure: None.
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