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Best Semiconductor Stocks to Buy Now (2025)

Top semiconductor stocks in 2025 ranked by overall Zen Rating. "A" Rated stocks have returned an average of +32.52% per year, and are the best semiconductor stocks to buy now. Learn More.

According to Zen Ratings, our proprietary rating system that evaluates 115 factors proven to drive growth in stocks and assigns each stock in our system an overall letter grade as well as 7 individual Component Grades for Value, Growth, Momentum, Sentiment, Safety, Financials, and proprietary AI algorithms, the 3 best semiconductor stocks to buy right now are:

Penguin Solutions (NASDAQ:PENG) is the #1 top semiconductor stock out of 68 with a Zen Rating of B. Stocks with a rating of B have had an average return of +19.88% per year. Learn more.

The Component Grade breakdown for Penguin Solutions (NASDAQ:PENG) is: Value: A, Growth: A, Momentum: D, Sentiment: C, Safety: C, Financials: B, and AI: B.

Penguin Solutions (NASDAQ:PENG) has a Due Diligence Score of 28, which is -4 points lower than the semiconductor industry average of 32. Although this number is below the industry average, our proven quant model rates PENG as a "B".

PENG passed 8 out of 33 due diligence checks and has average fundamentals. Penguin Solutions has seen its stock lose -8.72% over the past year, overperforming other semiconductor stocks by 10 percentage points.

Penguin Solutions has an average 1 year price target of $24.64, an upside of 56.86% from Penguin Solutions's current stock price of $15.71.

Penguin Solutions stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 7 analysts covering Penguin Solutions, 57.14% have issued a Strong Buy rating, 28.57% have issued a Buy, 14.29% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Taiwan Semiconductor Manufacturing Co (NYSE:TSM) is the #2 top semiconductor stock out of 68 with a Zen Rating of B. Stocks with a rating of B have had an average return of +19.88% per year. Learn more.

The Component Grade breakdown for Taiwan Semiconductor Manufacturing Co (NYSE:TSM) is: Value: C, Growth: C, Momentum: C, Sentiment: B, Safety: C, Financials: A, and AI: C.

Taiwan Semiconductor Manufacturing Co (NYSE:TSM) has a Due Diligence Score of 67, which is 35 points higher than the semiconductor industry average of 32.

TSM passed 26 out of 38 due diligence checks and has strong fundamentals. Taiwan Semiconductor Manufacturing Co has seen its stock return 13.96% over the past year, overperforming other semiconductor stocks by 33 percentage points.

Taiwan Semiconductor Manufacturing Co has an average 1 year price target of $230.00, an upside of 55.55% from Taiwan Semiconductor Manufacturing Co's current stock price of $147.86.

Taiwan Semiconductor Manufacturing Co stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 3 analysts covering Taiwan Semiconductor Manufacturing Co, 66.67% have issued a Strong Buy rating, 33.33% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Ceva (NASDAQ:CEVA) is the #3 top semiconductor stock out of 68 with a Zen Rating of B. Stocks with a rating of B have had an average return of +19.88% per year. Learn more.

The Component Grade breakdown for Ceva (NASDAQ:CEVA) is: Value: C, Growth: B, Momentum: C, Sentiment: C, Safety: C, Financials: C, and AI: B.

Ceva (NASDAQ:CEVA) has a Due Diligence Score of 28, which is -4 points lower than the semiconductor industry average of 32. Although this number is below the industry average, our proven quant model rates CEVA as a "B".

CEVA passed 8 out of 33 due diligence checks and has average fundamentals. Ceva has seen its stock return 19.94% over the past year, overperforming other semiconductor stocks by 39 percentage points.

Ceva has an average 1 year price target of $40.00, an upside of 76.37% from Ceva's current stock price of $22.68.

Ceva stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 4 analysts covering Ceva, 75% have issued a Strong Buy rating, 25% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Out of 18 semiconductor stocks that have issued dividends in the past year, the 3 semiconductor stocks with the highest dividend yields are:

Chipmos Technologies (NASDAQ:IMOS) has an annual dividend yield of 7.37%, which is 4 percentage points higher than the semiconductor industry average of 2.89%. Chipmos Technologies's dividend payout is not stable, having dropped more than 10% three times in the last 10 years. Chipmos Technologies's dividend has not shown consistent growth over the last 10 years.

Chipmos Technologies's dividend payout ratio of 91.3% indicates that its high dividend yield might not be sustainable for the long-term.

United Microelectronics (NYSE:UMC) has an annual dividend yield of 6.9%, which is 4 percentage points higher than the semiconductor industry average of 2.89%. United Microelectronics's dividend payout is not stable, having dropped more than 10% three times in the last 10 years. United Microelectronics's dividend has shown consistent growth over the last 10 years.

United Microelectronics's dividend payout ratio of 80.6% indicates that its high dividend yield is sustainable for the long-term.

Skyworks Solutions (NASDAQ:SWKS) has an annual dividend yield of 4.9%, which is 2 percentage points higher than the semiconductor industry average of 2.89%. Skyworks Solutions's dividend payout is not stable, having dropped more than 10% one times in the last 10 years. Skyworks Solutions's dividend has shown consistent growth over the last 10 years.

Skyworks Solutions's dividend payout ratio of 84.1% indicates that its high dividend yield is sustainable for the long-term.

Semiconductor stocks were down -1.81% in the last day, and down -4.71% over the last week. Astera Labs was the among the top losers in the semiconductors industry, dropping -7.7% yesterday.

Shares of semiconductor companies are trading lower after Huawei announced it's preparing AI chips as an alternative to Nvidia. Additionally, trade restrictions and tariff concerns are weighing on stocks in the industry.

Based on the Valuation rating, one of the 7 components of a stocks overall Zen Ratings grade, which evaluates factors including estimated earnings yield, earnings before interest and taxes/enterprise value, cash flow yield, free cash flow to price, and price-to-earnings growth (PEG ratio), the 3 most undervalued semiconductor stocks right now are:

Penguin Solutions (NASDAQ:PENG) is the most undervalued semiconductor stock based on its Valuation Rating of A. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Penguin Solutions has a valuation score of 43, which is 14 points higher than the semiconductor industry average of 29. It passed 3 out of 7 valuation due diligence checks.

Penguin Solutions's stock has dropped -8.72% in the past year. It has overperformed other stocks in the semiconductor industry by 10 percentage points.

Qualcomm (NASDAQ:QCOM) is the second most undervalued semiconductor stock based on its Valuation Rating of A. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Qualcomm has a valuation score of 71, which is 42 points higher than the semiconductor industry average of 29. It passed 5 out of 7 valuation due diligence checks.

Qualcomm's stock has dropped -15.01% in the past year. It has overperformed other stocks in the semiconductor industry by 4 percentage points.

Micron Technology (NASDAQ:MU) is the third most undervalued semiconductor stock based on its Valuation Rating of A. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Micron Technology has a valuation score of 71, which is 42 points higher than the semiconductor industry average of 29. It passed 5 out of 7 valuation due diligence checks.

Micron Technology's stock has dropped -38.84% in the past year. It has underperformed other stocks in the semiconductor industry by -20 percentage points.

50.88% of semiconductor stocks rated by analysts are a strong buy right now. On average, analysts expect semiconductor stocks to rise by 63.77% over the next year.

0% of semiconductor stocks have a Zen Rating of A (Strong Buy), 17.19% of semiconductor stocks are rated B (Buy), 60.94% are rated C (Hold), 10.94% are rated D (Sell), and 10.94% are rated F (Strong Sell).