In this article, we will look at the Goldman Sachs Semiconductor Stocks: Top 12 Picks.
The artificial intelligence super cycle is alive and well despite reports of a rotation out of big tech. While market skeptics are betting on a broad exit from the ‘Magnificent Seven,’ a wave of positive earnings from the semiconductor sector signals that there are still more legs to the AI race. Their long-term outlook also remains strong as hyperscalers increasingly pour money into AI data centers.
According to Victoria Fernandez, chief market strategist at Crossmark Global Investments, rotation from big tech looks set to slow a bit. Demand for chips that require massive high-end memory and advanced packaging remains strong, boosting the fortunes of leading semiconductor stocks.
Echoing Fernandez’s observations, Jack Fu, CEO at Draco Evolution, adds, “The main driver is AI-related demand, data centers, cloud capex, advanced computing, and that’s not slowing down yet.”
Semiconductor stocks started the year on a roll as companies benefited from continued demand for artificial intelligence. The S&P 500 Semiconductor & Semiconductor index is already up by 3.42% year to date, outperforming the overall stock market.
Ben Barringer, head of technology research at Quilter Cheviot, told CNBC that the impressive performance is due to a combination of strong demand for AI workloads and relatively constrained supply, especially in the high-bandwidth memory market.
“The recent rally across the semiconductor space has been driven largely by the memory side of the market rather than logic chips. We’re seeing a combination of very strong demand from AI workloads and relatively constrained supply, particularly in high-bandwidth memory, which is essential for training and running large AI models,” said Ben Barringer.
While the current positive run around semiconductors feels more structural than past ones and not a straight-line one, the overall trend for chips remains up as AI spending increases.
Goldman Sachs remains bullish on the semiconductor sector owing to intense AI-related demand. The investment bank has already reiterated a significant upside potential for AI-exposed stocks, citing supply constraints, high capital expenditures, and strong, AI-driven revenue growth.
Likewise, its investment unit boasts significant exposure to the semiconductor sector, well poised to benefit from the AI boom. Likewise, the bank’s asset and wealth management business soared last year. According to the firm’s full-year and Q4 2025 earnings results, net revenues in Asset and Wealth Management came in at $16.68 billion for 2025, 2% higher than 2024. Management explained that the increase reflects “higher Management and other fees.”
With that in mind, let’s take a look at some of the best Goldman Sachs Semiconductor Stocks likely to outperform amid the AI supercycles.
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Our Methodology
To create this list, we combed through Goldman Sachs Group Inc.’s 13F portfolio filings for Q3 2025 and selected the top semiconductor stocks based on stake value. We also considered institutional sentiment for each stock based on Q3 2025 hedge fund data from Insider Monkey’s database. The list is presented in ascending order based on Goldman Sachs’ stake value.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
Goldman Sachs Semiconductor Stocks: Top Picks
12. Analog Devices, Inc. (NASDAQ:ADI)
Goldman Sachs Stake: $976,947,448
Number of Hedge Fund Holders: 84
Analog Devices (NASDAQ:ADI) is among Goldman Sachs’ top semiconductor stock picks. On January 16, 2026, TD Cowen raised its price target on Analog Devices (NASDAQ:ADI) to $355 from $285, citing the company’s strong positioning in industrial markets and growth across subsegments such as automated test equipment and aerospace and defense. With a market cap of $151 billion and revenue growth of nearly 17% over the past year, ADI remains a key player in the semiconductor industry despite a tempered automotive outlook for the January quarter.
The firm noted ADI’s healthy gross profit margin of 61.5% and moderate debt levels, while acknowledging limited gross margin upside compared to peers. Still, above‑average margins in its industrial segment should drive accretion over time. TD Cowen expects strong results when ADI reports earnings on February 25, with analysts forecasting fiscal 2026 EPS of $9.91, though its late reporting cycle may leave little room for defense if peers deliver mixed outlooks.
The same day, Stifel also raised its price target on Analog Devices to $330 from $290 while maintaining a Buy rating, calling the company a high‑performance analog and mixed‑signal powerhouse and a key challenger to Texas Instruments. The firm highlighted ADI’s resilience in turbulent markets, with 87% of October quarter sales from B2B revenue, a revamped consumer segment focused on high‑margin products, synergies from the Maxim Integrated acquisition, and flexible manufacturing capacity that supports stronger revenue and margin stability compared to peers.
Analog Devices, Inc. (NASDAQ:ADI) is a U.S. semiconductor company specializing in high‑performance chips that power industrial, automotive, communications, and defense applications.
11. Marvell Technology, Inc. (NASDAQ:MRVL)
Goldman Sachs Stake: $977,898,794
Number of Hedge Fund Holders: 77
Marvell Technology, Inc. (NASDAQ:MRVL) is among Goldman Sachs’ top semiconductor stock picks. On January 14, RBC Capital Markets initiated coverage on Marvell Technology, Inc. (NASDAQ:MRVL) with an Outperform rating. The firm set a $105 price target on the shares citing Marvell’s dominance in the data center market.
According to Srini Pajjuri, the lead analyst, Marvell appears to have robust orders for the AWS Trainium3 chip program. Pajjuri also noted that the company’s recent Celestial acquisition and warrant agreement suggest it is likely to remain a key application-specific integrated circuit (ASIC) supplier for Trainium4. In fewer words, Pajjuri is of the opinion that Marvell’s business, particularly the optical segment, is on solid footing.
The analyst also touched on Marvell’s valuation, stating that “valuation is at a 25% discount to peers.” As a result, the firm is of the opinion that Marvell’s risk/reward is attractive.
Independent of the analyst action, on January 6, Marvell announced its intent to acquire XConn Technologies, a specialist in advanced PCIe and CXL switching silicon. The company said the move should bolster its position in artificial intelligence and cloud data center connectivity.
The deal, valued at around $540 million, will be funded with roughly 60% cash and 40% stock, Marvell said. This equates to about 2.5 million shares of Marvell common stock based on a 20-day volume-weighted average price. The company expects the transaction to close in early 2026.
Marvell Technology, Inc. (NASDAQ:MRVL) designs and develops semiconductors used in data centers, enterprise networking, carrier infrastructure, and automotive systems. Its portfolio of processors and networking semiconductors supports the growing demand for high-performance infrastructure.
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