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Best Semiconductor Stocks to Buy Now (2023)

Top semiconductor stocks in 2023 ranked by overall Zen Score. See the best semiconductor stocks to buy now, according to analyst forecasts for the semiconductors industry.

According to Zen Score, the 3 best semiconductor stocks to buy right now are:

Semtech (NASDAQ:SMTC) is the top semiconductor stock with a Zen Score of 66, which is 25 points higher than the semiconductor industry average of 41. It passed 21 out of 33 due diligence checks and has strong fundamentals. Semtech has seen its stock lose -53.35% over the past year, underperforming other semiconductor stocks by -46 percentage points.

Semtech has an average 1 year price target of $60.00, an upside of 76.52% from Semtech's current stock price of $33.99.

Semtech stock has a consensus Buy recommendation according to Wall Street analysts. Of the 8 analysts covering Semtech, 37.5% have issued a Strong Buy rating, 0% have issued a Buy, 62.5% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Synaptics (NASDAQ:SYNA) is the second best semiconductor stock with a Zen Score of 65, which is 24 points higher than the semiconductor industry average of 41. It passed 21 out of 33 due diligence checks and has strong fundamentals. Synaptics has seen its stock lose -42.29% over the past year, underperforming other semiconductor stocks by -35 percentage points.

Synaptics has an average 1 year price target of $165.50, an upside of 32.43% from Synaptics's current stock price of $124.97.

Synaptics stock has a consensus Buy recommendation according to Wall Street analysts. Of the 10 analysts covering Synaptics, 40% have issued a Strong Buy rating, 40% have issued a Buy, 20% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Diodes (NASDAQ:DIOD) is the third best semiconductor stock with a Zen Score of 61, which is 20 points higher than the semiconductor industry average of 41. It passed 19 out of 33 due diligence checks and has strong fundamentals. Diodes has seen its stock return 1.71% over the past year, overperforming other semiconductor stocks by 9 percentage points.

Diodes has an average 1 year price target of $88.67, a downside of -5.85% from Diodes's current stock price of $94.18.

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

Out of 20 semiconductor stocks that have issued dividends in the past year, the 3 semiconductor stocks with the highest dividend yields are:

Himax Technologies (NASDAQ:HIMX) has an annual dividend yield of 14.83%, which is 12 percentage points higher than the semiconductor industry average of 2.95%. Himax Technologies's dividend payout is not stable, having dropped more than 10% two times in the last 10 years. Himax Technologies's dividend has shown consistent growth over the last 10 years.

Chipmos Technologies (NASDAQ:IMOS) has an annual dividend yield of 12.04%, which is 9 percentage points higher than the semiconductor industry average of 2.95%. Chipmos Technologies's dividend payout is not stable, having dropped more than 10% one times in the last 10 years. Chipmos Technologies's dividend has shown consistent growth over the last 10 years.

Chipmos Technologies's dividend payout ratio of 33.1% indicates that its high dividend yield is sustainable for the long-term.

Nve (NASDAQ:NVEC) has an annual dividend yield of 5.56%, which is 3 percentage points higher than the semiconductor industry average of 2.95%. Nve's dividend payout is not stable, having dropped more than 10% one times in the last 10 years. Nve's dividend has not shown consistent growth over the last 10 years.

Nve's dividend payout ratio of 105.5% indicates that its high dividend yield might not be sustainable for the long-term.

Semiconductor stocks were down -1.88% in the last day, and up 4.38% over the last week. Synaptics was the among the top losers in the semiconductors industry, dropping -1.86% yesterday.

Synaptics shares are trading lower after the company reported worse-than-expected Q2 adjusted EPS and sales results.

Based on WallStreetZen's Valuation Score, the 3 most undervalued semiconductor stocks right now are:

Semtech (NASDAQ:SMTC) is the most undervalued semiconductor stock based on WallStreetZen's Valuation Score. Semtech has a valuation score of 100, which is 60 points higher than the semiconductor industry average of 40. It passed 7 out of 7 valuation due diligence checks.

Semtech's stock has dropped -53.35% in the past year. It has underperformed other stocks in the semiconductor industry by -46 percentage points.

Diodes (NASDAQ:DIOD) is the second most undervalued semiconductor stock based on WallStreetZen's Valuation Score. Diodes has a valuation score of 86, which is 46 points higher than the semiconductor industry average of 40. It passed 6 out of 7 valuation due diligence checks.

Diodes's stock has gained 1.71% in the past year. It has overperformed other stocks in the semiconductor industry by 9 percentage points.

Smart Global Holdings (NASDAQ:SGH) is the third most undervalued semiconductor stock based on WallStreetZen's Valuation Score. Smart Global Holdings has a valuation score of 86, which is 46 points higher than the semiconductor industry average of 40. It passed 6 out of 7 valuation due diligence checks.

Smart Global Holdings's stock has dropped -34.5% in the past year. It has underperformed other stocks in the semiconductor industry by -27 percentage points.