Sectors & IndustriesTechnologySemiconductor Equipment & Materials
Best Semiconductor Equipment Stocks to Buy Now (2025)
Top semiconductor equipment 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 equipment stocks to buy now. Learn More.

Industry: Semiconductor Equipment &...
D
Semiconductor Equipment is Zen Rated D and is the 112th ranked industry out of 145 stock market industries
Learn how the Zen Ratings work
Ticker
Company
DD Score
Valuation Score
Financials Score
Forecast Score
Performance Score
Dividends Score
LRCX
LAM RESEARCH CORP
56
29
86
56
50
60
KLAC
KLA CORP
59
14
86
56
80
60
AMKR
AMKOR TECHNOLOGY INC
39
43
71
11
10
60
AMBA
AMBARELLA INC
26
14
57
22
10
AMAT
APPLIED MATERIALS INC
45
43
71
22
30
60

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Use Due Diligence Score to quickly analyze stock fundamentals, even if you don't have a finance background. We run time-tested due diligence checks inspired by legendary investors like Warren Buffett, and score each company based on how many they pass/fail.

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Semiconductor Equipment Stocks FAQ

What are the best semiconductor equipment stocks to buy right now in Aug 2025?

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 material stocks to buy right now are:

1. Lam Research (NASDAQ:LRCX)


Lam Research (NASDAQ:LRCX) is the #1 top semiconductor equipment stock out of 29 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 Lam Research (NASDAQ:LRCX) is: Value: C, Growth: C, Momentum: C, Sentiment: B, Safety: C, Financials: A, and AI: B.

Lam Research (NASDAQ:LRCX) has a Due Diligence Score of 56, which is 20 points higher than the semiconductor equipment industry average of 36.

LRCX passed 21 out of 38 due diligence checks and has strong fundamentals. Lam Research has seen its stock return 2.95% over the past year, overperforming other semiconductor equipment stocks by 17 percentage points.

Lam Research has an average 1 year price target of $105.57, an upside of 11.31% from Lam Research's current stock price of $94.84.

Lam Research stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 21 analysts covering Lam Research, 57.14% have issued a Strong Buy rating, 23.81% have issued a Buy, 19.05% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

2. Kla (NASDAQ:KLAC)


Kla (NASDAQ:KLAC) is the #2 top semiconductor equipment stock out of 29 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 Kla (NASDAQ:KLAC) is: Value: C, Growth: C, Momentum: C, Sentiment: C, Safety: C, Financials: A, and AI: C.

Kla (NASDAQ:KLAC) has a Due Diligence Score of 59, which is 23 points higher than the semiconductor equipment industry average of 36.

KLAC passed 23 out of 38 due diligence checks and has strong fundamentals. Kla has seen its stock return 6.8% over the past year, overperforming other semiconductor equipment stocks by 21 percentage points.

Kla has an average 1 year price target of $869.27, a downside of -1.11% from Kla's current stock price of $879.03.

Kla stock has a consensus Buy recommendation according to Wall Street analysts. Of the 15 analysts covering Kla, 33.33% have issued a Strong Buy rating, 13.33% have issued a Buy, 53.33% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

3. Amkor Technology (NASDAQ:AMKR)


Amkor Technology (NASDAQ:AMKR) is the #3 top semiconductor equipment stock out of 29 with a Zen Rating of C. Stocks with a rating of C have had an average return of +7.53% per year. Learn more.

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

Amkor Technology (NASDAQ:AMKR) has a Due Diligence Score of 39, which is 3 points higher than the semiconductor equipment industry average of 36.

AMKR passed 13 out of 38 due diligence checks and has average fundamentals. Amkor Technology has seen its stock lose -30.92% over the past year, underperforming other semiconductor equipment stocks by -17 percentage points.

Amkor Technology has an average 1 year price target of $24.83, an upside of 10.08% from Amkor Technology's current stock price of $22.56.

Amkor Technology stock has a consensus Buy recommendation according to Wall Street analysts. Of the 6 analysts covering Amkor Technology, 33.33% have issued a Strong Buy rating, 16.67% have issued a Buy, 50% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

What are the semiconductor equipment stocks with highest dividends?

Out of 8 semiconductor equipment stocks that have issued dividends in the past year, the 3 semiconductor equipment stocks with the highest dividend yields are:

1. Amkor Technology (NASDAQ:AMKR)


Amkor Technology (NASDAQ:AMKR) has an annual dividend yield of 3.25%, which is 2 percentage points higher than the semiconductor equipment industry average of 1.16%. Amkor Technology's dividend payout is not stable, having dropped more than 10% one times in the last 10 years. Amkor Technology's dividend has shown consistent growth over the last 10 years.

Amkor Technology's dividend payout ratio of 59.1% indicates that its dividend yield is sustainable for the long-term.

2. Kulicke & Soffa Industries (NASDAQ:KLIC)


Kulicke & Soffa Industries (NASDAQ:KLIC) has an annual dividend yield of 1.86%, which is 1 percentage points higher than the semiconductor equipment industry average of 1.16%. Kulicke & Soffa Industries's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Kulicke & Soffa Industries's dividend has shown consistent growth over the last 10 years.

Kulicke & Soffa Industries's dividend payout ratio of 225% indicates that its dividend yield might not be sustainable for the long-term.

3. Lam Research (NASDAQ:LRCX)


Lam Research (NASDAQ:LRCX) has an annual dividend yield of 0.97%, which is the same as the semiconductor equipment industry average of 1.16%. Lam Research's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Lam Research's dividend has shown consistent growth over the last 10 years.

Lam Research's dividend payout ratio of 24.6% indicates that its dividend yield is sustainable for the long-term.

Why are semiconductor equipment stocks down?

Semiconductor equipment stocks were down -4.24% in the last day, and down -2.79% over the last week. Cohu was the among the top losers in the semiconductor equipment & materials industry, dropping -5.9% yesterday.

Cohu shares are trading higher after the company reported better-than-expected Q2 financial results and issued Q3 sales guidance above estimates.

What are the most undervalued semiconductor equipment stocks?

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 equipment stocks right now are:

1. Photronics (NASDAQ:PLAB)


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

Photronics has a valuation score of 71, which is 43 points higher than the semiconductor equipment industry average of 28. It passed 5 out of 7 valuation due diligence checks.

Photronics's stock has dropped -19.87% in the past year. It has underperformed other stocks in the semiconductor equipment industry by -6 percentage points.

2. Amkor Technology (NASDAQ:AMKR)


Amkor Technology (NASDAQ:AMKR) is the second most undervalued semiconductor equipment stock based on its Valuation Rating of B. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Amkor Technology has a valuation score of 43, which is 15 points higher than the semiconductor equipment industry average of 28. It passed 3 out of 7 valuation due diligence checks.

Amkor Technology's stock has dropped -30.92% in the past year. It has underperformed other stocks in the semiconductor equipment industry by -17 percentage points.

3. Acm Research (NASDAQ:ACMR)


Acm Research (NASDAQ:ACMR) is the third most undervalued semiconductor equipment stock based on its Valuation Rating of B. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Acm Research has a valuation score of 43, which is 15 points higher than the semiconductor equipment industry average of 28. It passed 3 out of 7 valuation due diligence checks.

Acm Research's stock has gained 69.14% in the past year. It has overperformed other stocks in the semiconductor equipment industry by 83 percentage points.

Are semiconductor equipment stocks a good buy now?

62.5% of semiconductor equipment stocks rated by analysts are a strong buy right now. On average, analysts expect semiconductor equipment stocks to rise by 14.34% over the next year.

0% of semiconductor equipment stocks have a Zen Rating of A (Strong Buy), 7.69% of semiconductor equipment stocks are rated B (Buy), 57.69% are rated C (Hold), 23.08% are rated D (Sell), and 11.54% are rated F (Strong Sell).

What is the average p/e ratio of the semiconductor equipment & materials industry?

The average P/E ratio of the semiconductor equipment & materials industry is 26.66x.
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