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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: C, Sentiment: B, Safety: C, Financials: B, and AI: C.

Penguin Solutions (NASDAQ:PENG) has a Due Diligence Score of 20, which is -10 points lower than the semiconductor industry average of 30. Although this number is below the industry average, our proven quant model rates PENG as a "A".

PENG passed 6 out of 33 due diligence checks and has weak fundamentals. Penguin Solutions has seen its stock lose -14.46% over the past year, underperforming other semiconductor stocks by -4 percentage points.

Penguin Solutions has an average 1 year price target of $24.92, an upside of 29.24% from Penguin Solutions's current stock price of $19.28.

Penguin Solutions stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 6 analysts covering Penguin Solutions, 66.67% have issued a Strong Buy rating, 16.67% have issued a Buy, 16.67% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Cirrus Logic (NASDAQ:CRUS) 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 Cirrus Logic (NASDAQ:CRUS) is: Value: A, Growth: C, Momentum: C, Sentiment: A, Safety: C, Financials: A, and AI: B.

Cirrus Logic (NASDAQ:CRUS) has a Due Diligence Score of 47, which is 17 points higher than the semiconductor industry average of 30.

CRUS passed 14 out of 33 due diligence checks and has strong fundamentals. Cirrus Logic has seen its stock lose -18.67% over the past year, underperforming other semiconductor stocks by -9 percentage points.

Cirrus Logic has an average 1 year price target of $109.00, an upside of 8.05% from Cirrus Logic's current stock price of $100.88.

Cirrus Logic stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 3 analysts covering Cirrus Logic, 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.

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

Semtech (NASDAQ:SMTC) has a Due Diligence Score of 16, which is -14 points lower than the semiconductor industry average of 30. 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 return 31.7% over the past year, overperforming other semiconductor stocks by 42 percentage points.

Semtech has an average 1 year price target of $54.29, an upside of 38.7% from Semtech's current stock price of $39.14.

Semtech stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 7 analysts covering Semtech, 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.

Out of 20 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 5.77%, which is 4 percentage points higher than the semiconductor industry average of 2.09%. 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 5.71%, which is 4 percentage points higher than the semiconductor industry average of 2.09%. 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.

Nve (NASDAQ:NVEC) has an annual dividend yield of 4.38%, which is 2 percentage points higher than the semiconductor industry average of 2.09%. 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 128.2% indicates that its high dividend yield might not be sustainable for the long-term.

Semiconductor stocks were down -3.46% in the last day, and up 0.66% over the last week.

We couldn't find a catalyst for why semiconductor stocks are down.

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 50 points higher than the semiconductor industry average of 21. It passed 5 out of 7 valuation due diligence checks.

Qualcomm's stock has dropped -28.97% in the past year. It has underperformed other stocks in the semiconductor industry by -19 percentage points.

Cirrus Logic (NASDAQ:CRUS) 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.

Cirrus Logic has a valuation score of 57, which is 36 points higher than the semiconductor industry average of 21. It passed 4 out of 7 valuation due diligence checks.

Cirrus Logic's stock has dropped -18.67% in the past year. It has underperformed other stocks in the semiconductor industry by -9 percentage points.

Penguin Solutions (NASDAQ:PENG) 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.

Penguin Solutions has a valuation score of 14, which is -7 points higher than the semiconductor industry average of 21. It passed 1 out of 7 valuation due diligence checks. Although this number is below the industry average, our proven quant model rates PENG a Valuation Rating of "A".

Penguin Solutions's stock has dropped -14.46% in the past year. It has underperformed other stocks in the semiconductor industry by -4 percentage points.

51.85% of semiconductor stocks rated by analysts are a strong buy right now. On average, analysts expect semiconductor stocks to rise by 14.85% over the next year.

1.64% of semiconductor stocks have a Zen Rating of A (Strong Buy), 13.11% of semiconductor stocks are rated B (Buy), 70.49% are rated C (Hold), 8.2% are rated D (Sell), and 6.56% are rated F (Strong Sell).