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. (NASDAQ:INDI) 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. (NASDAQ:INDI) 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. (NASDAQ:GFS) 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. (NASDAQ:GFS) 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 (NASDAQ:CRDO) 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 (NASDAQ:CRDO) 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.
While we acknowledge the potential of CRDO 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 CRDO and that has 100x upside potential, check out our report about the cheapest AI stock.
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