In this article, we will look at the 8 High Return Semiconductor Stocks to Buy Now.
Semiconductor stocks are still drawing attention because the AI buildout continues to run through the chip supply chain. The market has already rewarded many of the obvious winners, but the broader semiconductor complex remains central to the next phase of AI infrastructure spending. Capital Group says, “At the heart of the AI infrastructure build-out are semiconductors,” and calls the cycle one with “historic opportunities for companies across the semiconductor complex.” That matters because the opportunity is not limited to one GPU maker. It also spans networking chips, memory, power management, custom silicon, and the equipment needed to manufacture advanced chips.
The demand backdrop is still unusually tight. Fidelity International points to “The emergence of AI as a demand driver in semiconductors” and says it “will continue to cause supply/demand tightness across many areas of technology hardware.” Janus Henderson makes the bottleneck argument even more directly, saying “AI demand is running well ahead of supply” and that “Supply at nearly every layer of the stack, from memory to compute to power, still cannot keep pace with demand.” In summary, semiconductor stocks are being supported by real capacity constraints and earnings momentum, not just investor enthusiasm around AI.
With that in mind, let’s take a look at the 8 High Return Semiconductor Stocks to Buy Now.
Our Methodology
We used the Finviz screener to identify semiconductor stocks that have already gained at least 30% year-to-date and still offer notable upside from analysts’ price targets. We then 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. MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI)
On May 19, 2026, Evercore ISI analyst Mark Lipacis raised the firm’s price target on MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) to $427 from $275 and kept an Outperform rating on the shares. Following a new round of Q1 AI channel checks, the firm said key themes included a shift from AI training-driven workloads toward inference-driven workloads by the end of 2026. Evercore added that the transition is increasing industry focus on cost-per-token, return on investment, and total cost of ownership, which is driving greater hyperscaler interest in internally developed ASICs and alternative accelerators.
Northland analyst Tim Savageaux also raised the firm’s price target on MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) to $375 from $300 and keeps an Outperform rating on the shares following what the firm described as a “solidly better” fiscal Q2 and a “step function upside” in Q3 guidance.
Earlier in the month, MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) reported fiscal Q2 adjusted EPS of $1.09, versus the consensus estimate of $1.07. Revenue totaled $288.96M, versus the consensus estimate of $284.59M. President and CEO Stephen G. Daly said the company was pleased with its first-half fiscal year performance and expects strong revenue growth and profitability in the second half of the year.
MACOM expects Q3 adjusted EPS of $1.31 to $1.37, versus the consensus estimate of $1.15. The company also expects Q3 revenue of $331M to $339M, versus the consensus estimate of $299.81M. Management said adjusted gross margin is projected to range between 59% and 60% during the quarter.
MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) develops analog semiconductor solutions used in wireless and wireline applications across RF, microwave, millimeter wave, and lightwave technologies.
7. GLOBALFOUNDRIES Inc. (NASDAQ:GFS)
On May 19, 2026, Evercore ISI raised the firm’s price target on GLOBALFOUNDRIES Inc. (NASDAQ:GFS) to $85 from $58 and kept an Outperform rating on the shares. Following a new round of Q1 AI channel checks, the firm said key themes included a shift from AI training-driven workloads toward inference-driven workloads by the end of 2026. Evercore added that the transition is increasing focus on cost-per-token, return on investment, and total cost of ownership, which is driving greater hyperscaler interest in internally developed ASICs and alternative accelerators.
Susquehanna also raised the firm’s price target on GLOBALFOUNDRIES Inc. (NASDAQ:GFS) to $125 from $100 and keeps a Positive rating on the shares. The firm updated its estimates following the company’s analyst day and said the outlook is being supported by improving fundamentals, with communications infrastructure, including silicon photonics, emerging as a key growth driver.
Earlier in May, GLOBALFOUNDRIES Inc. (NASDAQ:GFS) reported Q1 EPS of 40c, versus the consensus estimate of 35c. Revenue totaled $1.64B, versus the consensus estimate of $1.63B. CEO Tim Breen said the company delivered strong first-quarter results, with all non-IFRS profitability metrics at or above the high end of guidance ranges. Breen added that execution across the company’s global operations and continued focus on customer delivery helped drive progress in secular growth markets where the company’s differentiated technologies are gaining share and supporting long-term value creation.
GLOBALFOUNDRIES Inc. (NASDAQ:GFS) provides semiconductor foundry services and wafer fabrication technologies across the United States, Europe, the Middle East, Africa, and international markets.
