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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 A. Stocks with a rating of A have had an average return of +32.52% 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 "A".

PENG passed 7 out of 33 due diligence checks and has weak fundamentals. Penguin Solutions has seen its stock lose -6.9% over the past year, overperforming other semiconductor stocks by 9 percentage points.

Penguin Solutions has an average 1 year price target of $24.64, an upside of 42.69% from Penguin Solutions's current stock price of $17.27.

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.

Qualcomm (NASDAQ:QCOM) 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 Qualcomm (NASDAQ:QCOM) is: Value: A, Growth: C, Momentum: C, Sentiment: B, Safety: C, Financials: A, and AI: B.

Qualcomm (NASDAQ:QCOM) has a Due Diligence Score of 56, which is 24 points higher than the semiconductor industry average of 32.

QCOM passed 19 out of 38 due diligence checks and has strong fundamentals. Qualcomm has seen its stock lose -12.75% over the past year, overperforming other semiconductor stocks by 4 percentage points.

Qualcomm has an average 1 year price target of $191.00, an upside of 29.39% from Qualcomm's current stock price of $147.62.

Qualcomm stock has a consensus Buy recommendation according to Wall Street analysts. Of the 18 analysts covering Qualcomm, 38.89% have issued a Strong Buy rating, 11.11% have issued a Buy, 44.44% have issued a hold, while 0% have issued a Sell rating, and 5.56% have issued a Strong Sell.

Taiwan Semiconductor Manufacturing Co (NYSE:TSM) 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 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 64, which is 32 points higher than the semiconductor industry average of 32.

TSM passed 25 out of 38 due diligence checks and has strong fundamentals. Taiwan Semiconductor Manufacturing Co has seen its stock return 17.98% over the past year, overperforming other semiconductor stocks by 34 percentage points.

Taiwan Semiconductor Manufacturing Co has an average 1 year price target of $230.00, an upside of 40.76% from Taiwan Semiconductor Manufacturing Co's current stock price of $163.40.

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.

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 6.79%, which is 4 percentage points higher than the semiconductor industry average of 2.61%. 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 6.68%, which is 4 percentage points higher than the semiconductor industry average of 2.61%. 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.

Skyworks Solutions (NASDAQ:SWKS) has an annual dividend yield of 4.48%, which is 2 percentage points higher than the semiconductor industry average of 2.61%. 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 -0.22% in the last day, and up 13.37% over the last week. Nvidia was the among the top losers in the semiconductors industry, dropping -2.05% yesterday.

NVIDIA shares are trading lower following reports indicating China's Huawei Technologies has developed an AI chip to challenge 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:

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 -12.75% in the past year. It has overperformed other stocks in the semiconductor industry by 4 percentage points.

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 -6.9% in the past year. It has overperformed other stocks in the semiconductor industry by 9 percentage points.

Cirrus Logic (NASDAQ:CRUS) is the third most undervalued semiconductor stock based on its Valuation Rating of B. 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 3.73% in the past year. It has overperformed other stocks in the semiconductor industry by 20 percentage points.

46.55% of semiconductor stocks rated by analysts are a strong buy right now. On average, analysts expect semiconductor stocks to rise by 42.05% over the next year.

1.56% of semiconductor stocks have a Zen Rating of A (Strong Buy), 9.38% of semiconductor stocks are rated B (Buy), 68.75% are rated C (Hold), 10.94% are rated D (Sell), and 9.38% are rated F (Strong Sell).