10 Best Semiconductor Stocks to Buy for 2025

The semiconductor industry continues to be the story of the 2025 market, powering everything from artificial intelligence (AI) to electric vehicles (EVs). Recent innovations, like DeepSeek’s cost-efficient AI models, have shaken up the market, but they’ve also highlighted the importance of semiconductor stocks. As 2025 unfolds, shares in these securities are as likely to be on top of expert ratings and recommendations as any of the hottest sectors.

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Here’s a quick look at the top 10 semiconductor stocks we’ll cover in this article:

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NVIDIA Corp (NASDAQ: NVDA)

DeepSeek’s impact: NVDA lost nearly $600 billion in market cap in one day, as traders worried its high-end AI chips would see lower demand.

NVIDIA was riding high before everything came crashing down.

But NVIDIA still dominates AI training chips, holding an 85% market share. AI models are getting more efficient, but AI usage is exploding—meaning more NVIDIA chips will be needed for inference and cloud processing.

Key catalysts:

• H200 GPUs and upcoming B100 series will push performance higher.
• AI cloud adoption is surging, with hyperscalers (Amazon, Microsoft) spending billions.
• Despite volatility, NVIDIA remains the #1 AI chipmaker globally.

Advanced Micro Devices Inc. (NASDAQ: AMD)

DeepSeek’s impact: AMD dropped as traders questioned demand for its MI300 AI accelerators.

But AMD is still gaining market share in data centers and AI inference.

Here’s what AMD has cooking.

Key catalysts:

• $3.5 billion in MI300 pre-orders show strong demand.
• EPYC server CPUs continue growing in cloud and AI workloads.
• AI inference chips could see explosive growth—a key area for AMD.

With 35% earnings growth expected, AMD remains a strong long-term play.

Intel Corp (NASDAQ: INTC)

Intel wasn’t hit as hard by DeepSeek because it isn’t reliant on AI training chips. Instead, it’s focused on AI PCs, foundry expansion, and cloud chips.

But it isn’t exactly in blue sky territory—here are the challenges that Intel is dealing with.

Key catalysts:

• AI-powered Core Ultra chips are bringing AI to personal computers.
• Gaudi AI accelerators offer a lower-cost alternative to NVIDIA GPUs.
• Massive investments in U.S. and European fabs support long-term growth.

Intel’s shift toward AI PCs and semiconductor manufacturing makes it a long-term turnaround bet.

Qualcomm Inc. (NASDAQ: QCOM)

DeepSeek’s impact: Minimal compared to AI-focused chipmakers, since Qualcomm is primarily involved in smartphones, 5G, and edge computing rather than AI data centers.

Qualcomm remains a dominant player in 5G technology and mobile chips, and its expansion into AI on edge devices positions it for future growth.

Key catalysts:

• Snapdragon AI chips are being adopted by smartphone makers and automotive companies.
• 5G modem dominance continues, with partnerships across major phone manufacturers.
• AI-powered PC chips could create new revenue streams as laptops shift toward AI capabilities.

While Qualcomm isn’t as tied to AI data centers as NVIDIA, it benefits from AI’s expansion to mobile and edge devices.

Broadcom Inc. (NASDAQ: AVGO)

DeepSeek’s impact: Broadcom lost 17.4% as traders worried about AI chip demand.

But Broadcom isn’t just an AI chip company—it powers AI infrastructure with:

• Custom AI accelerators for hyperscalers like Google and Amazon.
• Networking chips for AI data centers (which still need massive infrastructure).
• Dividend yield of 1.1%, making it a solid income play.

Long-term, Broadcom remains essential to AI infrastructure.

Texas Instruments Inc. (NASDAQ: TXN)

DeepSeek’s impact: Minimal, as Texas Instruments focuses on industrial and automotive semiconductors rather than AI-specific chips.

Texas Instruments is a stable, dividend-paying semiconductor giant, with a focus on:

• Automotive chips, which are in high demand as cars become more electronic and autonomous.
• Industrial applications, including factory automation and robotics.
• Strong profit margins and a history of shareholder returns through dividends and buybacks.

TXN is a long-term, lower-volatility semiconductor stock, making it a strong choice for conservative investors.

Micron Technology Inc. (NASDAQ: MU)

DeepSeek’s impact: Memory demand could shift depending on AI chip needs, but Micron remains a leader in high-performance memory solutions for AI workloads.

Micron’s high-bandwidth memory (HBM) is crucial for AI applications, and demand is expected to surge as AI models become more complex.

Here’s why Micron is still a very interesting stock to watch.

Key catalysts:

• HBM shipments are expected to triple by 2026, making Micron a key supplier.
• 232-layer NAND and DRAM innovations help Micron maintain an edge in cost efficiency.
• AI and cloud computing are fueling massive demand for next-generation memory.

Micron’s strong position in AI memory makes it a long-term growth stock in the semiconductor sector.

Applied Materials Inc. (NASDAQ: AMAT)

DeepSeek’s impact: Minimal direct impact, as Applied Materials supplies semiconductor fabrication equipment rather than AI chips.

As chipmakers increase capital expenditures to build AI infrastructure, demand for Applied Materials’ chip manufacturing tools will grow.

• Provides essential equipment for Taiwan Semiconductor Manufacturing, Samsung, and Intel’s AI chip production.
• Earnings growth remains strong, driven by high demand for advanced chipmaking technology.
• U.S. semiconductor expansion (CHIPS Act) supports long-term growth.

Applied Materials benefits from rising AI semiconductor demand, making it a solid play on the AI chip boom.

Lam Research Corp. (NASDAQ: LRCX)

DeepSeek’s impact: Limited direct impact, as Lam Research is a key supplier of semiconductor fabrication tools.

Lam Research plays a crucial role in AI chip production, making it a pick-and-shovel play on the semiconductor industry.

• EUV lithography and etching technologies are essential for cutting-edge chips.
• Global expansion of semiconductor foundries (TSMC, Intel, Samsung) increases demand for Lam’s tools.
• Rising AI investment ensures long-term growth in semiconductor manufacturing.

Lam Research is a strong long-term investment in the semiconductor supply chain.

Taiwan Semiconductor Manufacturing Co. (NASDAQ: TSM)

DeepSeek’s impact: Taiwan Semiconductor Manufacturing Co. (TSMC) dropped 14% as traders feared AI chip demand would slow.

But as the largest contract chipmaker in the world, TSMC is still producing:

• AI chips for NVIDIA, AMD, and Apple.
• 3nm chips already in production, with 2nm on track for 2025.
• Global fab expansion in the U.S., Japan, and Germany reduces geopolitical risk. Although tariffs could still make a dent in TSMC earnings.

TSMC remains the backbone of the semiconductor industry.

Semiconductor Chip Stocks to Buy Now

The semiconductor market is incredibly diverse, with opportunities for both high-growth traders and those who prefer more stable plays. Companies like NVIDIA and the Taiwan Semiconductor Manufacturing Co. dominate the high-performance chip space, while Texas Instruments and Applied Materials offer exposure to slower-moving but reliable sectors like analog chips and manufacturing equipment.

For traders, the key is finding stocks with strong momentum and clear technical setups. Look for stocks breaking out of consolidation patterns or bouncing off well-defined support levels. The semiconductor industry is highly cyclical, so understanding how broader trends—like AI adoption or smartphone demand—affect specific stocks can give you an edge.

Remember, trading semiconductor stocks requires discipline. The sector’s volatility can be a double-edged sword, so always manage your risk and stick to your plan. Whether you’re day trading NVIDIA’s intraday swings or swing trading Micron’s pullbacks, patience and preparation are your greatest tools.

Big names dominate the semiconductor space, but smaller companies often make for better trades. Penny stocks in the semiconductor market can offer higher risk but also higher reward if you know where to look. These stocks often represent emerging players tackling niche markets or disruptive technologies. If you’re looking to expand beyond the obvious choices, consider adding some semiconductor penny stocks to your watchlist. Here’s a list of the best semiconductor penny stocks to check out.

What Are the Different Types of Semiconductor Stocks?

The semiconductor sector isn’t one-size-fits-all. Understanding the types of companies in this space can help traders find setups that match their strategies. Whether you’re trading low-float penny stocks or established blue chips, knowing the distinctions can guide your watchlist.

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Companies like NVIDIA (NASDAQ: NVDA) and Advanced Micro Devices (NASDAQ: AMD) design chips but outsource production to foundries like the Taiwan Semiconductor Manufacturing Co (NASDAQ: TSM). These stocks are often more volatile due to their direct exposure to new product launches and market demand for GPUs and AI.

Fabrication Equipment Manufacturers

Applied Materials (NASDAQ: AMAT) and Lam Research (NASDAQ: LRCX) produce the equipment that makes chips. These stocks often move in response to spending cycles from big chipmakers. When capital expenditures rise, so do these stocks.

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Integrated Device Manufacturers (IDMs)

Companies like Intel (NASDAQ: INTC) both design and manufacture chips. They’re less dependent on foundries but often require massive investments in fabrication plants, which can impact their profit margins.

Semiconductor Foundries

TSM and GlobalFoundries (NASDAQ: GFS) dominate this category. Foundries produce chips for other companies, which makes their performance closely tied to industry demand. Foundries are often stable, but geopolitical events can add an element of risk.

Semiconductor Distributors

Distributors like Arrow Electronics (NYSE: ARW) handle the logistics of getting chips to customers. They’re generally less volatile but could see movement during times of supply chain disruption.

Outsourced Assembly and Testing (OSAT)

Companies in this category, like ASE Technology Holding Co. (NYSE: ASX), provide assembly and testing services for chipmakers. They’re often under the radar but can present trading opportunities when industry-wide demand surges.

Pros and Cons of Investing in Semiconductor Stocks

The semiconductor sector offers plenty of opportunities, but it’s not without risks. Here’s a quick breakdown of the pros and cons to help you decide if trading or investing in chip stocks aligns with your goals.

Pros:

• Essential to Modern Technology: Semiconductors are the backbone of innovation, powering everything from AI systems to smartphones, 5G networks, and electric vehicles. This consistent demand creates long-term growth potential.
• Exposure to High-Growth Trends: With the rise of artificial intelligence, cloud computing, and advanced manufacturing, semiconductor companies like NVIDIA (NASDAQ: NVDA) and Taiwan Semiconductor Manufacturing Co. (NYSE: TSM) have been industry leaders delivering significant returns.
• Frequent Trading Opportunities: The sector is highly responsive to earnings reports, product launches, and global news. This makes it ideal for traders looking to capitalize on short-term price action and volatility.

Cons:

• Cyclical Nature: Semiconductor stocks are highly cyclical, often moving in tandem with global demand. A slowdown in technology spending or disruptions in supply chains can quickly impact share prices.
• Vulnerability to Global Events: Factors like geopolitical tensions, trade restrictions, and supply chain challenges can lead to sharp price swings. For example, news like DeepSeek’s AI developments rattled the sector, causing significant sell-offs across key players like Broadcom (NASDAQ: AVGO).
• High Volatility: While volatility creates trading opportunities, it also increases risk. Without proper risk management, traders can face steep losses during sudden market downturns or unexpected news events.

In my experience, understanding both the potential rewards and risks helps traders stay disciplined. Remember, volatility is both an opportunity and a threat—it’s all about how you manage it.

What Makes a Semiconductor Stock the Best?

The “best” semiconductor stock depends on your trading or investing goals. For long-term investors, companies with strong fundamentals like revenue growth, consistent earnings, and a dominant market position often stand out. Stocks like NVIDIA and the Taiwan Semiconductor Manufacturing Co. are known for their leadership in cutting-edge technologies like AI and advanced chip manufacturing.

For traders, the focus shifts to price action and volume. Stocks with high volatility and liquidity provide frequent opportunities for breakout setups or quick scalps. Keep an eye on technical indicators like moving averages and RSI to time your trades effectively.

One factor that makes semiconductor stocks particularly appealing is their sensitivity to global trends. Whether it’s AI projects like Stargate or a rise in demand for electric vehicles, these catalysts often lead to sharp price moves. The key is finding stocks that align with your strategy—whether it’s day trading, swing trading, or long-term investing.

Once you’ve figured that out, it’s time to build a watchlist:

It’s not just about tech innovation—hype also drives top semiconductor stocks. Companies tied to industries like EV batteries or energy storage have more exposure to news—and these technologies will be even more interdependent in the future. See this guide for the best battery stocks to pair with your semiconductor picks.

Key Takeaways

• DeepSeek AI shook the market, but AI adoption could still accelerate chip demand.
• NVIDIA and AMD remain dominant in AI, despite concerns about efficiency.
• Broadcom, Taiwan Semiconductor Manufacturing Co., and Micron are crucial to AI infrastructure.
• Government funding (CHIPS Act) is boosting U.S. semiconductor production.
• AI, cloud, and 5G will drive semiconductor growth for years to come.

Volatility is a double-edged sword in this sector. News like DeepSeek’s AI disruption can trigger massive sell-offs, but they also create opportunities to trade on the rebound. To succeed in trading chip stocks, stay disciplined, focus on technical setups, and keep your watchlist updated with the latest catalysts.

This is a market tailor-made for traders who are prepared. Semiconductor stocks thrive on volatility, but it’s up to you to capitalize on it. Stick to your plan, manage your risk, and don’t let FOMO drive your decisions.

These opportunities are fast and unpredictable, but with the right strategy, you can make them work for you.

I recommend that you pay close attention to the first days of this possibly historic bull market.

If you want to know what I’m looking for—check out my free webinar here!

Frequently Asked Questions

Are semiconductor stocks a good investment in 2025?

Semiconductor stocks remain promising in 2025 due to ongoing demand in AI, 5G, and EVs. However, they are highly sensitive to news and market cycles. If you’re trading, focus on companies with strong fundamentals and high volume for better liquidity during trades.

Is NVIDIA still a buy?

NVIDIA continues to dominate in AI and GPUs, but recent volatility caused by the DeepSeek news has brought its valuation into question. Watch for support levels and volume spikes as signs of institutional buying. As always, make sure it fits your trading plan before jumping in.

Which semiconductor companies lead in 5G technology?

Qualcomm (NASDAQ: QCOM) is a leader in 5G chips, benefiting from widespread adoption in smartphones and IoT devices. Broadcom also has exposure to 5G infrastructure. Both stocks are worth watching for swing trade setups around earnings or product announcements.

How did DeepSeek impact semiconductor stock prices?

DeepSeek’s AI breakthrough triggered a massive selloff in semiconductor stocks, wiping out nearly $1 trillion in market value in a single day. NVIDIA (NASDAQ: NVDA) dropped 17%, while other AI chip stocks like Broadcom (NASDAQ: AVGO) and Marvell (NASDAQ: MRVL) also plunged. However, many analysts believe this was an overreaction, and some stocks have already begun to recover.

Will DeepSeek’s low-cost AI models hurt growth stocks in the semiconductor sector?

Growth stocks in the semiconductor space, particularly AI-focused chipmakers, saw heavy losses as investors questioned future demand for high-performance GPUs. However, some analysts argue that cheaper AI models could actually expand AI adoption, leading to higher long-term demand for AI chips. While short-term volatility is likely, companies like NVIDIA, AMD, and TSM still dominate the AI chip market.

Are semiconductor stocks included in ETFs and index funds?

Yes, many semiconductor stocks are part of ETFs and index funds, including the S&P 500 and Nasdaq-100. Popular semiconductor ETFs like VanEck Semiconductor ETF (SMH) and iShares Semiconductor ETF (SOXX) give investors diversified exposure to the industry. Given recent volatility, some investors are using ETFs to gain exposure while managing risk.

How do fiscal policies and securities regulations affect semiconductor stocks?

Government fiscal policies, including tax incentives and subsidies, play a huge role in the semiconductor industry’s growth. The CHIPS Act has provided billions in funding for U.S. semiconductor manufacturing, benefiting companies like Intel (INTC) and TSMC. Meanwhile, securities regulations can impact how companies raise capital and expand globally, especially as China and the U.S. navigate trade restrictions on semiconductor technology.

Can I buy semiconductor stocks using margin loans or credit cards?

Most brokers and brokerage accounts allow margin trading, which lets investors borrow money to buy stocks, but this comes with significant risk. While some credit unions and banks offer personal loans, using credit cards or loans to invest in stocks is generally not recommended due to high interest rates and market volatility. Instead, investors should consider money market funds, savings accounts, or ETFs for safer long-term investment strategies.

How do mortgage rates and student loans impact investing in semiconductor stocks?

Higher mortgage rates and student loan payments can reduce disposable income, limiting the amount individual investors can allocate to stocks, including semiconductor companies. When interest rates rise, borrowing becomes more expensive for both consumers and businesses, which can slow economic growth and impact corporate profits. Investors should consider how macroeconomic factors influence market trends and use analyst estimates and financial reviews to guide their investment decisions.

Should investors consider tax implications when trading semiconductor stocks?

Yes, capital gains taxes can significantly impact net profits from semiconductor stock investments, especially for short-term traders. Long-term holdings typically receive lower tax rates, making it important to consider holding periods when planning trades. Consulting financial guidance from tax professionals or brokerage firms can help investors optimize their strategies while staying compliant with securities regulations.

How do banking policies and refinance lenders affect semiconductor stock performance?

Banking policies, including lending regulations and interest rate adjustments, influence corporate financing for semiconductor manufacturers and tech startups. When refinance lenders offer lower rates, businesses can access cheaper capital for expansion, potentially driving gains in stock prices. Investors should monitor both industry-specific trends and broader financial rights policies to assess the long-term stability of their semiconductor investments.