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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.

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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The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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