In this article, we will discuss 8 Best Up and Coming Semiconductor Stocks to Buy.
When it comes to semiconductor stocks, billionaires and hedge fund managers aren’t just participating, they’re restructuring portfolios around them. In a market captivated by the promise of artificial intelligence, chips have quietly become the most direct and reliable way to monetize the entire AI ecosystem. While software companies debate use cases and competition, semiconductor firms are already capturing the surge in demand: one data center, one GPU, one server at a time.
For the smart money, the logic is straightforward: if you believe in AI, you have to believe in the hardware powering it. That’s why investors in the mold of Stanley Druckenmiller have leaned heavily into semiconductors; not as a speculative bet, but as the “picks and shovels” of the digital gold rush. From hyperscale data centers to autonomous systems, nearly every transformative technology runs through a semiconductor supply chain.
At the same time, hedge funds have been aggressively rotating capital into the space, shifting exposure away from traditional software and toward chipmakers with direct leverage to AI-driven demand. Industry leaders like NVIDIA and Taiwan Semiconductor Manufacturing Company are increasingly viewed not just as tech stocks but as critical infrastructure providers in a rapidly digitizing world.
Yet, despite the enthusiasm, this is not a risk-free trade. Semiconductors remain deeply cyclical, sensitive to both macroeconomic slowdowns and inventory swings. Investors like Ray Dalio would also point to the growing influence of geopolitics—from U.S.-China tensions to supply chain concentration—as a defining factor in the sector’s future.
The bottom line? Semiconductor stocks sit at the intersection of innovation, capital flows, and global power dynamics. And for hedge funds chasing the next decade of growth, they’ve become almost impossible to ignore.
With this context in mind, here is a list of the 8 best up and coming semiconductor stocks to buy.
Our Methodology
For this article, we compiled a list of the top publicly traded semiconductor companies. From this list, we selected 8 stocks that completed their initial public offerings within the past seven years. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.
Why are we interested in the stocks that hedge funds pile into? 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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
8 Best Up and Coming Semiconductor Stocks to Buy
8. indie Semiconductor, Inc. (NASDAQ:INDI)
On March 23, indie Semiconductor, Inc. (NASDAQ:INDI) released its first Ultraviolet Visible Distributed Feedback 399 nm single-frequency laser diode optimized for quantum computing systems based on cooled Ytterbium atoms. With the addition of this new device in the UV spectrum, indie is expanding on its previously announced LXM-U and narrow-linewidth visible DFB lasers, furthering its capabilities and strengthening its photonics portfolio, which is enabling advanced quantum technologies. The company noted that its photonics division continues to gain momentum as part of its strategic expansion into adjacent markets outside automotive, including quantum and humanoids, as demonstrated by increasing customer traction and an expanding product portfolio.
On February 23, UBS lowered the firm’s price target on indie Semiconductor, Inc. to $4.25 from $5 and kept a Neutral rating on the shares following the earnings report. While the firm believes the company is moving beyond a period of stagnation into an era of solid sequential growth, the analyst suggests it is still too early to recommend the shares, reflecting a cautious stance despite improving operational trends.
indie Semiconductor, Inc. is a specialized fabless semiconductor company focused on creating integrated circuits (ICs) and software solutions for the automotive sector. Founded in 2007 and headquartered in Aliso Viejo, California, the company went public in June 2021.
7. GLOBALFOUNDRIES Inc. (NASDAQ:GFS)
On March 26, Apple announced it is working with GLOBALFOUNDRIES Inc. (NASDAQ:GFS) and Cirrus Logic to establish new semiconductor process technologies at GlobalFoundries’ facility in Malta, New York. The collaboration aims to enable key technologies for Apple products, including advanced integrated circuits powering Face ID systems. This partnership highlights GlobalFoundries’ role as a critical manufacturing partner in the semiconductor ecosystem, bringing advanced production capabilities to the U.S. market.
The same day, GLOBALFOUNDRIES Inc. filed multiple lawsuits in the United States against Tower Semiconductor, alleging patent infringement across 11 U.S. patents tied to high-performance semiconductor manufacturing technologies. The company claims Tower unlawfully leveraged its innovations to compete in markets such as mobile, automotive, aerospace, and communications infrastructure, seeking injunctive relief and financial compensation.
GLOBALFOUNDRIES Inc. is a leading multinational semiconductor manufacturer operating as a pure-play foundry, producing chips designed by other companies. Founded in 2009 as a spin-off from Advanced Micro Devices’ manufacturing arm, the company went public on October 28, 2021. With strategic partnerships and aggressive protection of its intellectual property, GlobalFoundries continues to strengthen its position as a key enabler of advanced semiconductor technologies, supporting long-term growth driven by global chip demand.
6. Credo Technology Group Holding Ltd (NASDAQ:CRDO)
On April 15, BofA raised the firm’s price target on Credo Technology Group Holding Ltd (NASDAQ:CRDO) to $210 from $160 and maintained a Buy rating on the shares. Following the company’s agreement to acquire DustPhotonics, management now expects its combined optics portfolio to exceed a $500 million run-rate by fiscal 2027 across optical transceivers, DSPs, and silicon photonics products. The firm also increased its fiscal 2027 and 2028 revenue and EPS estimates, citing accelerating demand and improved visibility into growth.
The same day, Rosenblatt raised its price target on Credo Technology Group Holding Ltd to $175 from $125 while maintaining a Neutral rating, noting strong investor enthusiasm for Credo’s expansion into optical connectivity. However, the analyst cautioned that while the optics growth narrative appears compelling, it may be partially offset by softness in other product segments, highlighting a more balanced risk-reward outlook.
Credo Technology Group Holding Ltd is a fabless semiconductor company specializing in high-speed, energy-efficient connectivity solutions for AI infrastructure, hyperscale data centers, and cloud computing markets. Founded in 2008 and headquartered in San Jose, California, the company went public in 2022. As demand for high-performance data connectivity accelerates, Credo is well-positioned to capitalize on structural growth trends in next-generation computing infrastructure, reinforcing its upside potential.
5. Mobileye Global Inc. (NASDAQ:MBLY)
On April 14, Goldman Sachs lowered its price target on Mobileye Global Inc. (NASDAQ:MBLY) to $8 from $12 while maintaining a Neutral rating, citing softer near-term performance expectations across the automotive sector due to rising input costs and weaker vehicle demand in key markets such as China. The firm noted that while industrial technology companies remain resilient, automotive suppliers may face continued pressure.
The same day, UBS also lowered its price target on Mobileye Global Inc. to $9 from $12 and kept a Neutral rating, highlighting limited upside potential and reliance on multiple expansion. While valuations have become more reasonable, the firm remains cautious about structural growth visibility, though it acknowledges that lowered expectations could create opportunities if performance stabilizes.
Mobileye Global Inc. is a leading semiconductor and autonomous driving technology company specializing in computer vision and Advanced Driver-Assistance Systems (ADAS). Founded in 1999 and headquartered in Jerusalem, Israel, Mobileye went public twice, most recently in 2022 as a subsidiary of Intel. As autonomous driving adoption evolves, Mobileye remains a central player in automotive innovation, offering long-term growth potential tied to increasing vehicle automation.
4. IonQ, Inc. (NYSE:IONQ)
On April 14, IonQ, Inc. (NYSE:IONQ) achieved a major technical milestone by photonically interconnecting two independent trapped-ion quantum systems, marking the first demonstration of connected commercial quantum computers. This breakthrough validates the use of photonic links to enable quantum entanglement across systems, a critical step toward scaling quantum computing beyond single processors. Importantly, this advancement moves quantum computing closer to a distributed architecture, where multiple quantum systems can work together, significantly enhancing computational power and practical usability for real-world applications.
The same day, IonQ, Inc. expanded its partnership with the University of Maryland through a multi-year agreement under the National Quantum Laboratory (QLab), supporting research in quantum networking, computing, and workforce development. The collaboration includes deployment of advanced quantum hardware, expanded system access for researchers, and joint development of next-generation quantum applications, reinforcing IonQ’s leadership position within the rapidly evolving quantum ecosystem.
Founded in 2015 and headquartered in College Park, Maryland, IonQ, Inc. went public in 2021. The company is rapidly evolving into a vertically integrated quantum computing firm, particularly following its acquisition of SkyWater Technology’s foundry assets. By combining semiconductor manufacturing techniques with quantum innovation, IonQ is uniquely positioned to control both hardware and software layers of its technology stack. This vertical integration, coupled with first-mover advantages in trapped-ion systems—widely considered one of the most promising quantum architectures—positions IonQ as a high-upside investment. As governments and enterprises accelerate spending on quantum technologies, IonQ stands out as a pure-play leader with strong technological differentiation and long-term growth potential tied to the commercialization of quantum computing.
3. Rigetti Computing, Inc. (NASDAQ:RGTI)
On April 9, Rigetti Computing, Inc. (NASDAQ:RGTI) announced the general availability of its 108-qubit quantum computing system, Cepheus-1-108Q, now accessible via its Quantum Cloud Services platform and through Amazon Braket. This system represents a significant leap in scale and performance, utilizing a modular chiplet-based architecture that enables improved scalability—one of the most critical challenges in quantum computing. With high gate fidelity and faster processing speeds, the system demonstrates meaningful progress toward practical quantum advantage.
On April 7, Mizuho lowered its price target on Rigetti Computing, Inc. to $33 from $43 but maintained an Outperform rating, emphasizing that despite near-term volatility and competitive pressures, the firm still sees over 100% upside potential. The analyst highlighted that quantum computing is entering the early stages of an inflection point, driven by increasing investment, technological breakthroughs, and growing enterprise interest.
Rigetti Computing, Inc. is a full-stack quantum computing company that designs and manufactures its own superconducting quantum processors while delivering Quantum Computing as a Service (QCaaS) through its cloud platform. Founded in 2013 and headquartered in Berkeley, California, the company went public on March 2, 2022. Rigetti’s vertically integrated approach—spanning chip design, fabrication partnerships, and cloud delivery—gives it a strategic advantage in iterating rapidly and scaling its technology.
2. Arm Holdings plc (NASDAQ:ARM)
On April 8, Arm Holdings plc (NASDAQ:ARM) saw Goldman Sachs raise its price target to $125 from $110 while maintaining a Sell rating, noting strong fundamentals across the semiconductor ecosystem despite elevated expectations following the stock’s significant rally. The firm acknowledged that Arm is well-positioned within key growth markets, even as valuation concerns remain.
The day before, Morgan Stanley downgraded Arm Holdings plc (NASDAQ:ARM) to Equal Weight from Overweight and raised its price target to $150 from $135, describing the company’s transition into chip design and manufacturing as a structural evolution of its business model. While near-term risks such as end-market softness and execution challenges persist, the firm emphasized that Arm’s strategic positioning and early design wins remain strong.
Arm Holdings plc (NASDAQ:ARM) is a British semiconductor and software design company that licenses energy-efficient processor architectures powering over 99% of smartphones globally. Founded in 1990 and headquartered in Cambridge, UK, the company re-listed on Nasdaq on September 14, 2023. Arm’s business model is uniquely scalable, generating high-margin royalty revenue from a vast ecosystem of partners, including nearly every major semiconductor and technology company. As computing shifts toward AI, edge devices, and data centers, Arm’s architectures are becoming increasingly central due to their energy efficiency and performance advantages. Its expansion into custom silicon and broader chip solutions further enhances its long-term growth profile.
1. Navitas Semiconductor Corporation (NASDAQ:NVTS)
On April 15, Navitas Semiconductor Corporation (NASDAQ:NVTS) saw bullish options activity, with elevated call volumes and rising implied volatility ahead of its upcoming earnings report, signaling growing investor interest and expectations for potential upside catalysts. Increased options activity often reflects confidence in near-term developments, particularly in high-growth sectors such as power semiconductors.
On April 7, 2026, Navitas Semiconductor Corporation expanded its board of directors, appointing industry veteran Gregory M. Fischer, whose appointment was publicly announced on April 13. Fischer brings over four decades of semiconductor leadership experience, including senior roles at Broadcom, and is expected to provide strategic guidance as Navitas scales its operations and product portfolio.
Navitas Semiconductor Corporation is a leader in next-generation power semiconductors, focusing on gallium nitride (GaN) and silicon carbide (SiC) technologies that enable faster, more efficient power conversion. Founded in 2014 and headquartered in Torrance, California, the company went public in 2021. Its technologies are critical for high-growth applications, including electric vehicles, renewable energy systems, fast charging, and data centers. As global demand for energy efficiency intensifies and electrification trends accelerate, Navitas is positioned at the center of a multi-decade shift toward advanced power solutions.
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