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.

Industry: Semiconductors
D
Semiconductor is Zen Rated D and is the 96th ranked industry out of 145 stock market industries
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Ticker
Company
Zen Rating
Value
Growth
Momentum
Sentiment
Safety
Financials
AI
1w Zen Rating
1m Zen Rating
3m Zen Rating
1y Zen Rating
RMBS
RAMBUS INC
BCCCBCBCBCB
SMTC
SEMTECH CORP
BCADCCBCBAB
PENG
PENGUIN SOLUTIONS INC
BAADCCBCBBB
TSM
TAIWAN SEMICONDUCTOR MANUFACTURING CO LTD
BCCCBCACBB
CEVA
CEVA INC
BCBCCCCCBBB

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Use the proven Zen Ratings quant model to find stocks with high potential to beat the market. Stocks Zen-Rated "A" have beaten the market by +32.52% annually. Learn More

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Semiconductor Stocks FAQ

What are the best semiconductor stocks to buy right now in May 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 stocks to buy right now are:

1. Rambus (NASDAQ:RMBS)


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

Rambus (NASDAQ:RMBS) has a Due Diligence Score of 63, which is 31 points higher than the semiconductor industry average of 32.

RMBS passed 20 out of 33 due diligence checks and has strong fundamentals. Rambus has seen its stock lose -11% over the past year, overperforming other semiconductor stocks by 4 percentage points.

Rambus has an average 1 year price target of $78.25, an upside of 60.38% from Rambus's current stock price of $48.79.

Rambus stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 4 analysts covering Rambus, 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.

2. Semtech (NASDAQ:SMTC)


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: A, Momentum: D, Sentiment: C, Safety: C, Financials: B, and AI: C.

Semtech (NASDAQ:SMTC) has a Due Diligence Score of 16, which is -16 points lower than the semiconductor industry average of 32. Although this number is below the industry average, our proven quant model rates SMTC as a "B".

SMTC passed 5 out of 33 due diligence checks and has weak fundamentals. Semtech has seen its stock lose -16.93% over the past year, underperforming other semiconductor stocks by -2 percentage points.

Semtech has an average 1 year price target of $58.58, an upside of 87.47% from Semtech's current stock price of $31.25.

Semtech stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 12 analysts covering Semtech, 58.33% have issued a Strong Buy rating, 33.33% have issued a Buy, 8.33% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

3. Penguin Solutions (NASDAQ:PENG)


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

Penguin Solutions (NASDAQ:PENG) has a Due Diligence Score of 24, which is -8 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 7 out of 33 due diligence checks and has weak fundamentals. Penguin Solutions has seen its stock lose -6.57% over the past year, overperforming other semiconductor stocks by 8 percentage points.

Penguin Solutions has an average 1 year price target of $24.64, an upside of 44.36% from Penguin Solutions's current stock price of $17.07.

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.

What are the semiconductor stocks with highest dividends?

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

1. Chipmos Technologies (NASDAQ:IMOS)


Chipmos Technologies (NASDAQ:IMOS) has an annual dividend yield of 6.73%, which is 4 percentage points higher than the semiconductor industry average of 2.64%. 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.

2. United Microelectronics (NYSE:UMC)


United Microelectronics (NYSE:UMC) has an annual dividend yield of 6.58%, which is 4 percentage points higher than the semiconductor industry average of 2.64%. 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 84.5% indicates that its high dividend yield is sustainable for the long-term.

3. Skyworks Solutions (NASDAQ:SWKS)


Skyworks Solutions (NASDAQ:SWKS) has an annual dividend yield of 4.32%, which is 2 percentage points higher than the semiconductor industry average of 2.64%. 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.

Why are semiconductor stocks up?

Semiconductor stocks were up 1.06% in the last day, and up 7.27% over the last week. Qorvo was the among the top gainers in the semiconductors industry, gaining 14.4% yesterday.

Qorvo shares are trading higher after the company reported better-than-expected Q4 financial results and issued Q1 guidance with its midpoint above estimates.

What are the most undervalued semiconductor 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 stocks right now are:

1. Qualcomm (NASDAQ:QCOM)


Qualcomm (NASDAQ:QCOM) 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.

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

Qualcomm's stock has dropped -10.49% in the past year. It has overperformed other stocks in the semiconductor industry by 5 percentage points.

2. Penguin Solutions (NASDAQ:PENG)


Penguin Solutions (NASDAQ:PENG) 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.

Penguin Solutions has a valuation score of 29, which is 1 points higher than the semiconductor industry average of 28. It passed 2 out of 7 valuation due diligence checks.

Penguin Solutions's stock has dropped -6.57% in the past year. It has overperformed other stocks in the semiconductor industry by 8 percentage points.

3. Cirrus Logic (NASDAQ:CRUS)


Cirrus Logic (NASDAQ:CRUS) 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.

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

Cirrus Logic's stock has gained 8.43% in the past year. It has overperformed other stocks in the semiconductor industry by 23 percentage points.

Are semiconductor stocks a good buy now?

47.37% of semiconductor stocks rated by analysts are a strong buy right now. On average, analysts expect semiconductor stocks to rise by 40.33% over the next year.

0% of semiconductor stocks have a Zen Rating of A (Strong Buy), 14.06% of semiconductor stocks are rated B (Buy), 64.06% are rated C (Hold), 12.5% are rated D (Sell), and 9.38% are rated F (Strong Sell).

What is the average p/e ratio of the semiconductors industry?

The average P/E ratio of the semiconductors industry is 44.06x.
WallStreetZen does not provide financial advice and does not issue recommendations or offers to buy stock or sell any security.

Information is provided 'as-is' and solely for informational purposes and is not advice. WallStreetZen does not bear any responsibility for any losses or damage that may occur as a result of reliance on this data.