8 Cheap Semiconductor Stocks to Buy According to Hedge Funds

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In this article, we will take a look at the 8 Cheap Semiconductor Stocks to Buy According to Hedge Funds.

President Donald Trump announced on September 4 that his administration will apply tariffs to imports from companies that are not moving their manufacturing to the United States. Speaking ahead of a dinner with a number of CEOs of leading tech giants, the President said:

“Yeah, I have discussed it with the people here. Chips and semiconductors, we will be putting tariffs on companies that aren’t coming in. e will be putting a tariff very shortly”.

While an exact figure wasn’t provided, a month ago President Trump hinted towards imposing a 100% tariff on imports of semiconductors, though this would not apply to companies that are bringing manufacturing to the States.

Beyond tariffs, the semiconductor industry has several drivers, such as the growing need for generative AI, the expansion of data centers, and the growing use of next-generation process technologies. In that regard, the PC and smartphones semiconductor areas come up as notable growth areas, where AI-enabled devices are predicted to account for half of PC shipments and 30% of smartphone sales by 2025.

10 Cheap Semiconductor Stocks to Buy According to Hedge Funds

Photo by Umberto on Unsplash

Our Methodology

To compile our list of cheap semiconductor stocks favored by hedge funds, we utilized stocks screeners to come up with equities with lower forward price-to-earnings (P/E) ratios relative to the sector median for the semiconductor industry (25.57). We also used the number of hedge fund investors to rank the stocks, as of Q2 2025.

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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

8. Himax Technologies, Inc. (NASDAQ:HIMX)

Forward P/E Ratio as of September 29: 15.22

Number of Hedge Fund Holders: 13

Himax Technologies, Inc. (NASDAQ:HIMX) ranks among the best cheap semiconductor stocks to buy. Himax Technologies, Inc. (NASDAQ:HIMX) and Liqxtal Technology, a subsidiary, announced on September 17 that they will exhibit defense and aerospace imaging systems at the Taipei Aerospace & Defense Technology Exhibition. The display features a virtual panoramic system that uses Liqxtal’s Pro-Eye technology to simulate a 260-inch screen.

Himax Technologies, Inc. (NASDAQ:HIMX) was also set to showcase biometric sensing systems that integrate its WiseEye PalmVein Module with thermal imaging and structured light 3D sensing technology. Additionally, the company will introduce Liqxtal Dim, which combines AI sensing with liquid crystal light valves to modify light transmission in response to environmental conditions.

Himax Technologies, Inc. (NASDAQ:HIMX) is a Taiwan-based semiconductor company that specializes in display imaging and processing technology.

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