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. 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. 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. 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. 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. 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. provides semiconductor foundry services and wafer fabrication technologies across the United States, Europe, the Middle East, Africa, and international markets.
6. Astera Labs, Inc. (NASDAQ:ALAB)
On May 19, 2026, Evercore ISI raised the firm’s price target on Astera Labs, Inc. (NASDAQ:ALAB) to $297 from $215 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.
Needham also raised the firm’s price target on Astera Labs, Inc. to $260 from $220 and keeps a Buy rating on the shares. The firm said the company delivered another significant beat-and-raise quarter, supported by growth across its Scorpio, Aries, and Taurus product families. Needham also noted that Astera Labs expects its optical portfolio to begin ramping in FY27, leveraging technology obtained through the aiXscale acquisition.
Earlier in the month, Astera Labs, Inc. reported Q1 EPS of 61c, versus the consensus estimate of 54c. Revenue totaled $308.36M, versus the consensus estimate of $292.32M. CEO Jitendra Mohan said revenue increased 14% sequentially and 93% year over year to a record $308.4M, driven by strong demand for the company’s PCIe 6 portfolio. Mohan added that adoption of Astera Labs’ Intelligent Connectivity Platform continues expanding through the launch and initial shipments of its Scorpio X-Series 320-lane AI scale-up fabric switch, new customer engagements for custom and optical solutions, and growing market share across its PCIe switch and Smart Cable Module portfolio. Management said the company continues investing to strengthen its position in rack-scale AI infrastructure technologies.
Astera Labs, Inc. develops semiconductor-based connectivity solutions for cloud and AI infrastructure markets.
5. Silicon Motion Technology Corporation (NASDAQ:SIMO)
On May 12, 2026, B. Riley raised the firm’s price target on Silicon Motion Technology Corporation (NASDAQ:SIMO) to $312 from $250 and kept a Buy rating on the shares. The firm said AI investment continues accelerating faster than expected, with growing demand from hyperscalers and neo-cloud providers driving materially higher 2026-2028 capex expectations. B. Riley added that evolving workload trends and increasing chip intensity from major AI model providers are tightening supply-demand dynamics across semiconductors, supporting stronger earnings revisions and elevated sector valuations despite recent volatility.
Susquehanna analyst Mehdi Hosseini also raised the firm’s price target on Silicon Motion Technology Corporation to $275 from $175 and keeps a Positive rating on the shares. The firm raised estimates across the board as Silicon Motion continues executing on market share gains and revenue diversification initiatives that are expected to gain traction through late 2026 and into 2027. Susquehanna added that it has gained greater confidence in the company’s long-term earnings power, with updated estimates implying annualized EPS of $10.50 exiting 2026 and as much as $12.30 by Q4 2027.
Silicon Motion Technology Corporation designs and markets NAND flash controllers and related storage solutions for solid-state devices and enterprise applications globally.
4. Diodes Incorporated (NASDAQ:DIOD)
On May 12, 2026, Diodes Incorporated (NASDAQ:DIOD) announced that Keh-Shew Lu retired as Chairman of the Board, effective immediately, after more than 25 years with the company. The Board of Directors elected Angie Chen Button to serve as Chairwoman of the Board.
On May 8, 2026, Truist analyst William Stein raised the firm’s price target on Diodes Incorporated to $139 from $98 and kept a Buy rating on the shares. The firm said the company’s cyclical recovery continues, supported by an above-seasonal Q1 performance and modestly above-seasonal Q2 guidance. Truist also noted that lead times are beginning to extend while inventories continue declining.
Earlier in May, Diodes Incorporated reported Q1 adjusted EPS of 43c, versus the consensus estimate of 33c. Revenue totaled $405.5M, versus the consensus estimate of $395M. President and CEO Gary Yu said first-quarter revenue increased 22% year over year and 3.5% sequentially, reflecting continued demand recovery across automotive, industrial, and AI server-related applications. Yu added that the quarter marked the company’s fifth consecutive period of double-digit year-over-year growth and its strongest growth rate since Q4 2021. Europe led regional growth, supported by rising automotive opportunities and improving industrial demand.
Diodes Incorporated develops and supplies semiconductor products across Asia, the Americas, and Europe.
3. nLIGHT, Inc. (NASDAQ:LASR)
On May 8, 2026, Raymond James raised the firm’s price target on nLIGHT, Inc. (NASDAQ:LASR) to $100 from $75 and kept a Strong Buy rating on the shares. The firm said Q1 results cleared a high bar and strengthened confidence in the conversion of defense programs, supported by improving visibility in munitions, growing international demand, and the higher-content HADES architecture. Raymond James added that it sees a credible path for nLIGHT to build a $500M-$1B defense franchise before 2030 with structurally higher margins.
On the same day, Needham also raised the firm’s price target on nLIGHT, Inc. to $80 from $70 and kept a Buy rating on the shares.
On May 7, 2026, nLIGHT, Inc. reported Q1 adjusted EPS of 20c, versus the consensus estimate of 8c. Revenue totaled $80.2M, versus the consensus estimate of $72.14M. The company expects Q2 revenue of $75M to $81M, versus the consensus estimate of $71.03M. At the midpoint, guidance includes approximately $58M in Products revenue and about $20M in Advanced Development revenue. nLIGHT also expects overall gross margin between 29% and 33%, with Products gross margin projected at 37% to 41% and Advanced Development gross margin around 8%. Adjusted EBITDA is expected to range from $8M to $12M.
nLIGHT, Inc. designs and manufactures semiconductor and fiber lasers for aerospace and defense, industrial, and microfabrication applications.
2. Synaptics Incorporated (NASDAQ:SYNA)
On May 8, 2026, Northland raised the firm’s price target on Synaptics Incorporated (NASDAQ:SYNA) to $123 from $106 and kept an Outperform rating on the shares after the company reported results above consensus expectations and guided the June quarter higher.
Susquehanna also raised the firm’s price target on Synaptics Incorporated to $125 from $105 and kept a Positive rating on the shares. The firm updated its model following better-than-expected Q1 results and guidance.
On May 7, 2026, Synaptics Incorporated reported Q3 adjusted EPS of $1.09, versus the consensus estimate of $1.01. Revenue totaled $294.2M, versus the consensus estimate of $290.13M. President and CEO Rahul Patel said the company delivered a solid fiscal third quarter, with double-digit year-over-year revenue growth driven by a 31% increase in Core IoT product sales. Patel added that revenue, non-GAAP gross margin, and non-GAAP EPS all exceeded the midpoints of guidance, reflecting strong execution. Management said that based on the midpoint of Q4 guidance, full-year fiscal 2026 Core IoT revenue is expected to grow more than 40% year over year to above $385M. The company also highlighted accelerating activity in Physical AI and Edge AI, supported by increasing customer engagements and design wins, while continuing to position its portfolio around emerging long-term growth opportunities.
Synaptics Incorporated develops and markets semiconductor products for mobile, PC, smart home, industrial, and automotive applications worldwide.
1. Tower Semiconductor Ltd. (NASDAQ:TSEM)
On May 14, 2026, Susquehanna raised the firm’s price target on Tower Semiconductor Ltd. (NASDAQ:TSEM) to $330 from $180 and kept a Positive rating on the shares. The firm updated its estimates following the company’s recent results and outlook, as well as planned capacity expansion and revised long-term revenue and operating margin targets tied to the RF infrastructure ramp.
Benchmark analyst Cody Acree also raised the firm’s price target on Tower Semiconductor Ltd. to $335 from $230 and kept a Buy rating on the shares.
On May 13, 2026, Tower Semiconductor Ltd. reported Q1 adjusted EPS of 65c, versus the consensus estimate of 56c. Revenue totaled $413.63M, versus the consensus estimate of $410.98M. CEO Russell Ellwanger said the company delivered a strong start to 2026, supported by broad-based year-over-year revenue growth across its major technology platforms and continued execution of strategic priorities. Ellwanger added that Q2 guidance points to the highest quarterly revenue in company history, with sequential revenue growth expected throughout the rest of the year. Management highlighted strong customer demand, expanding content opportunities, and increasing contributions from the company’s differentiated technology portfolio, particularly in silicon photonics for AI infrastructure.
The company said it expects Q2 2026 revenue of approximately $455M, plus or minus 5%, representing 22% year-over-year growth and 10% sequential growth. Tower Semiconductor also said it expects sequential quarter-over-quarter revenue and margin expansion throughout 2026.
Tower Semiconductor Ltd. operates as an independent semiconductor foundry serving customers across the United States, Asia, Europe, and other international markets.
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