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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:

Analog Devices (NASDAQ:ADI) is the top semiconductor stock with a Zen Score of 65, which is 30 points higher than the semiconductor industry average of 35. It passed 23 out of 38 due diligence checks and has strong fundamentals. Analog Devices has seen its stock return 7.62% over the past year, underperforming other semiconductor stocks by -16 percentage points.

Analog Devices has an average 1 year price target of $204.42, an upside of 13.17% from Analog Devices's current stock price of $180.63.

Analog Devices stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 12 analysts covering Analog Devices, 50% have issued a Strong Buy rating, 25% have issued a Buy, 25% 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 second best semiconductor stock with a Zen Score of 64, which is 29 points higher than the semiconductor industry average of 35. It passed 23 out of 38 due diligence checks and has strong fundamentals. Silicon Motion Technology has seen its stock lose -7.89% over the past year, underperforming other semiconductor stocks by -31 percentage points.

Silicon Motion Technology has an average 1 year price target of $83.67, an upside of 43.68% from Silicon Motion Technology's current stock price of $58.23.

Silicon Motion Technology stock has a consensus Buy recommendation according to Wall Street analysts. Of the 3 analysts covering Silicon Motion Technology, 0% have issued a Strong Buy rating, 66.67% have issued a Buy, 33.33% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Diodes (NASDAQ:DIOD) is the third best semiconductor stock with a Zen Score of 56, which is 21 points higher than the semiconductor industry average of 35. It passed 17 out of 33 due diligence checks and has strong fundamentals. Diodes has seen its stock lose -23.08% over the past year, underperforming other semiconductor stocks by -46 percentage points.

Diodes has an average 1 year price target of $69.25, an upside of 1.88% from Diodes's current stock price of $67.97.

Diodes stock has a consensus Buy recommendation according to Wall Street analysts. Of the 4 analysts covering Diodes, 50% have issued a Strong Buy rating, 0% have issued a Buy, 50% 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:

Wisekey International Holding Sa (NASDAQ:WKEY) has an annual dividend yield of 167.66%, which is 157 percentage points higher than the semiconductor industry average of 10.46%.

Wisekey International Holding Sa's dividend payout ratio of -36.3% indicates that its high dividend yield might not be sustainable for the long-term.

Himax Technologies (NASDAQ:HIMX) has an annual dividend yield of 8.66%, which is -2 percentage points lower than the semiconductor industry average of 10.46%. 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.

United Microelectronics (NYSE:UMC) has an annual dividend yield of 7.58%, which is -3 percentage points lower than the semiconductor industry average of 10.46%. 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 56.6% indicates that its high dividend yield is sustainable for the long-term.

Semiconductor stocks were down -0.67% in the last day, and down -0.4% over the last week.

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

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 -7.89% in the past year. It has underperformed other stocks in the semiconductor industry by -31 percentage points.

Analog Devices (NASDAQ:ADI) is the second most undervalued semiconductor stock based on WallStreetZen's Valuation Score. Analog Devices 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.

Analog Devices's stock has gained 7.62% in the past year. It has underperformed other stocks in the semiconductor industry by -16 percentage points.

Diodes (NASDAQ:DIOD) is the third most undervalued semiconductor stock based on WallStreetZen's Valuation Score. Diodes has a valuation score of 71, which is 35 points higher than the semiconductor industry average of 36. It passed 5 out of 7 valuation due diligence checks.

Diodes's stock has dropped -23.08% in the past year. It has underperformed other stocks in the semiconductor industry by -46 percentage points.