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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:

Qualcomm (NASDAQ:QCOM) is the top semiconductor stock with a Zen Score of 74, which is 36 points higher than the semiconductor industry average of 38. It passed 28 out of 38 due diligence checks and has strong fundamentals. Qualcomm has seen its stock lose -12.46% over the past year, underperforming other semiconductor stocks by -34 percentage points.

Qualcomm has an average 1 year price target of $132.75, an upside of 21.54% from Qualcomm's current stock price of $109.22.

Qualcomm stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 16 analysts covering Qualcomm, 56.25% have issued a Strong Buy rating, 25% have issued a Buy, 12.5% have issued a hold, while 0% have issued a Sell rating, and 6.25% have issued a Strong Sell.

Silicon Motion Technology (NASDAQ:SIMO) is the second best semiconductor stock with a Zen Score of 72, which is 34 points higher than the semiconductor industry average of 38. It passed 27 out of 38 due diligence checks and has strong fundamentals. Silicon Motion Technology has seen its stock lose -24.44% over the past year, underperforming other semiconductor stocks by -46 percentage points.

Silicon Motion Technology has an average 1 year price target of $86.40, an upside of 63.11% from Silicon Motion Technology's current stock price of $52.97.

Silicon Motion Technology stock has a consensus Buy recommendation according to Wall Street analysts. Of the 5 analysts covering Silicon Motion Technology, 20% have issued a Strong Buy rating, 60% have issued a Buy, 20% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Monolithic Power Systems (NASDAQ:MPWR) is the third best semiconductor stock with a Zen Score of 63, which is 25 points higher than the semiconductor industry average of 38. It passed 24 out of 38 due diligence checks and has strong fundamentals. Monolithic Power Systems has seen its stock return 10.23% over the past year, underperforming other semiconductor stocks by -11 percentage points.

Monolithic Power Systems has an average 1 year price target of $587.78, an upside of 29.79% from Monolithic Power Systems's current stock price of $452.86.

Monolithic Power Systems stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 9 analysts covering Monolithic Power Systems, 55.56% have issued a Strong Buy rating, 44.44% 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 21 semiconductor stocks that have issued dividends in the past year, the 3 semiconductor stocks with the highest dividend yields are:

Silicon Motion Technology (NASDAQ:SIMO) has an annual dividend yield of N/A, which is N/A percentage points lower than the semiconductor industry average of 9.69%. Silicon Motion Technology's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Silicon Motion Technology's dividend has shown consistent growth over the last 10 years.

Silicon Motion Technology's dividend payout ratio of 19.2% indicates that its dividend yield is sustainable for the long-term.

Wisekey International Holding Sa (NASDAQ:WKEY) has an annual dividend yield of 140%, which is 130 percentage points higher than the semiconductor industry average of 9.69%.

Wisekey International Holding Sa's dividend payout ratio of 0% indicates that its high dividend yield might not be sustainable for the long-term.

Himax Technologies (NASDAQ:HIMX) has an annual dividend yield of 8.99%, which is -1 percentage points lower than the semiconductor industry average of 9.69%. 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.

Semiconductor stocks were down -1.6% in the last day, and down -3.3% over the last week. Arm Holdings was the among the top losers in the semiconductors industry, dropping -4.1% yesterday.

Arm shares are trading lower amid post-IPO volatility.

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

Silicon Motion Technology (NASDAQ:SIMO) is the most undervalued semiconductor stock based on WallStreetZen's Valuation Score. Silicon Motion Technology has a valuation score of 100, which is 64 points higher than the semiconductor industry average of 36. It passed 7 out of 7 valuation due diligence checks.

Silicon Motion Technology's stock has dropped -24.44% 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 50 points higher than the semiconductor industry average of 36. It passed 6 out of 7 valuation due diligence checks.

Diodes's stock has gained 13.61% in the past year. It has underperformed other stocks in the semiconductor industry by -8 percentage points.

Synaptics (NASDAQ:SYNA) is the third most undervalued semiconductor stock based on WallStreetZen's Valuation Score. Synaptics has a valuation score of 86, which is 50 points higher than the semiconductor industry average of 36. It passed 6 out of 7 valuation due diligence checks.

Synaptics's stock has dropped -20.93% in the past year. It has underperformed other stocks in the semiconductor industry by -42 percentage points.