Top 10 Semiconductor Stocks to Buy Now

1. NVIDIA Corporation (NASDAQ:NVDA)

No. Of Hedge Fund Holders: 223

NVIDIA Corporation (NASDAQ:NVDA) provides graphics, computer, and networking solutions, including GPUs, software, and platforms for gaming, data-centers, automotive, and AI.

Morgan Stanley reiterated its Top Pick rating for Nvidia, viewing the DeepSeek selloff as a buying opportunity, leading to the share price rising by 2% on Thursday last week. Analysts led by Mr. Joseph Moore acknowledge headwinds in the long-term, but the short-term business outlook remains firm. The company reported revenue of $39.3 billion during the Q4 2024 earnings call.

NVIDIA Corporation (NASDAQ:NVDA) hardware-software integration, particularly its DGX cloud offerings, makes it a major player in AI and serverless computing. The company’s CEO also stated an improvement in their product performance by millions of times over the past decade, and expects similar growth over the next decade. While having an established dominance in hardware, it also has an overwhelming presence in the cloud. With 93% of GPU-accelerated instances being powered by the company’s hardware.

The Semiconductor Industry Association (SIA) which includes NVIDIA Corporation (NASDAQ:NVDA) as a member, spoke about the importance of the US Trade Commission to look beyond tariffs and work with global allies to offset China’s attempts at dominating the industry.

“In semiconductors, as in other advanced technologies, China has pursued a wide range of policies and practices that seek to frustrate access for foreign products and companies to its domestic market, while offering an array of subsidies, discriminatory standards, preferential government procurement policies, local content requirements, and other measures intended to boost local producers and design-in domestically produced semiconductor chips into downstream products for sale in China’s domestic market as well as for products exported to the rest of the world.”

At the time of writing this article, NVIDIA Corporation’s (NASDAQ:NVDA) share price was $112.69, with a consensus on the average price for the trading 12-months at $172.22, an upside of 52.83%.

Overall, NVIDIA Corporation (NASDAQ:NVDA) ranks first in our list of top semiconductor stocks. While we acknowledge the potential for NVDA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that delivers higher returns than NVDA, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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