Sectors & IndustriesTechnologySemiconductors

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:

Micron Technology (NASDAQ:MU) is the #1 top semiconductor stock out of 68 with a Zen Rating of A. Stocks with a rating of A have had an average return of +32.52% per year. Learn more.

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

Micron Technology (NASDAQ:MU) has a Due Diligence Score of 53, which is 20 points higher than the semiconductor industry average of 33.

MU passed 19 out of 38 due diligence checks and has strong fundamentals. Micron Technology has seen its stock return 135.25% over the past year, overperforming other semiconductor stocks by 109 percentage points.

Micron Technology has an average 1 year price target of $208.80, a downside of -13.4% from Micron Technology's current stock price of $241.11.

Micron Technology stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 25 analysts covering Micron Technology, 60% have issued a Strong Buy rating, 32% have issued a Buy, 8% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Semtech (NASDAQ:SMTC) 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 Semtech (NASDAQ:SMTC) is: Value: C, Growth: B, Momentum: C, Sentiment: C, Safety: C, Financials: B, and AI: C.

Semtech (NASDAQ:SMTC) has a Due Diligence Score of 37, which is 4 points higher than the semiconductor industry average of 33.

SMTC passed 12 out of 33 due diligence checks and has average fundamentals. Semtech has seen its stock return 45.67% over the past year, overperforming other semiconductor stocks by 19 percentage points.

Semtech has an average 1 year price target of $65.40, a downside of -9.17% from Semtech's current stock price of $72.00.

Semtech stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 10 analysts covering Semtech, 50% have issued a Strong Buy rating, 40% have issued a Buy, 10% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Silicon Motion Technology (NASDAQ:SIMO) 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 Silicon Motion Technology (NASDAQ:SIMO) is: Value: C, Growth: C, Momentum: B, Sentiment: B, Safety: C, Financials: C, and AI: C.

Silicon Motion Technology (NASDAQ:SIMO) has a Due Diligence Score of 54, which is 21 points higher than the semiconductor industry average of 33.

SIMO passed 19 out of 38 due diligence checks and has strong fundamentals. Silicon Motion Technology has seen its stock return 78.49% over the past year, overperforming other semiconductor stocks by 52 percentage points.

Silicon Motion Technology has an average 1 year price target of $108.57, an upside of 16.48% from Silicon Motion Technology's current stock price of $93.21.

Silicon Motion Technology stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 7 analysts covering Silicon Motion Technology, 57.14% have issued a Strong Buy rating, 42.86% 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 17 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 9.57%, which is 7 percentage points higher than the semiconductor industry average of 2.22%. Himax Technologies's dividend payout is not stable, having dropped more than 10% three times in the last 10 years. Himax Technologies's dividend has shown consistent growth over the last 10 years.

Nve (NASDAQ:NVEC) has an annual dividend yield of 4.59%, which is 2 percentage points higher than the semiconductor industry average of 2.22%. Nve's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Nve's dividend has not shown consistent growth over the last 10 years.

Nve's dividend payout ratio of 139.9% indicates that its high dividend yield might not be sustainable for the long-term.

Skyworks Solutions (NASDAQ:SWKS) has an annual dividend yield of 4.08%, which is 2 percentage points higher than the semiconductor industry average of 2.22%. 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 90.9% indicates that its high dividend yield might not be sustainable for the long-term.

Semiconductor stocks were down -2.09% in the last day, and up 0.71% over the last week. Arm Holdings was the among the top losers in the semiconductors industry, dropping -0.66% yesterday.

Shares of broader chip stocks are trading lower amid a pullback in AI and tech stocks. NVIDIA fell after SoftBank sold its stake in the company.

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:

United Microelectronics (NYSE:UMC) 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.

United Microelectronics has a valuation score of 71, which is 45 points higher than the semiconductor industry average of 26. It passed 5 out of 7 valuation due diligence checks.

United Microelectronics's stock has gained 3.58% in the past year. It has underperformed other stocks in the semiconductor industry by -23 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 45 points higher than the semiconductor industry average of 26. It passed 5 out of 7 valuation due diligence checks.

Qualcomm's stock has gained 8.11% in the past year. It has underperformed other stocks in the semiconductor industry by -18 percentage points.

Skyworks Solutions (NASDAQ:SWKS) 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.

Skyworks Solutions has a valuation score of 57, which is 31 points higher than the semiconductor industry average of 26. It passed 4 out of 7 valuation due diligence checks.

Skyworks Solutions's stock has dropped -20.2% in the past year. It has underperformed other stocks in the semiconductor industry by -47 percentage points.

61.11% of semiconductor stocks rated by analysts are a strong buy right now. On average, analysts expect semiconductor stocks to rise by 14.19% over the next year.

1.56% of semiconductor stocks have a Zen Rating of A (Strong Buy), 25% of semiconductor stocks are rated B (Buy), 57.81% are rated C (Hold), 12.5% are rated D (Sell), and 3.13% are rated F (Strong Sell).