5 Best Semiconductor Stocks to Buy for Q2 2025

Trade your favourite markets with our top-rated broker, eToro.

eToro 4.6/5

eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.

Visit site

eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.

Demand from technology has resulted in the semiconductor industry experiencing a boom in recent years. With technology now integral to the world, companies that develop semiconductors are in demand. Our investment experts have investigated the market and selected five of the top semiconductor stocks for the year ahead. 

What are the top semiconductor stocks to buy?

You can find our experts’ selections listed below. You can find their name and ticker symbol and if you want to invest right away, just click the buttons. Alternatively, keep scrolling if you want to know why each has made our list.

1. Taiwan Semiconductor Manufacturing Company (TSMC)

• Market Cap: $717 billion
• Dividend Yield: 1.93%
• 5-Year Return: 326%
• Country: Taiwan

Taiwan Semiconductor Manufacturing Company is the largest semiconductor manufacturing company in the world It specialises in manufacturing for other companies rather than producing semiconductor chips for itself. This business model allows TSMC to work with a wide range of clients and diversify its revenue streams.

TSMS’s business has been growing rapidly in the past few years, helped by the ongoing demand for artificial intelligence products. Its revenue soared from over $35.7 billion in 2019 billion to over $70.4 billion in 2023 and analysts expect that this growth will continue. 

TSMC has also become a highly profitable company as its net income soared from $11.8 billion in 2019 to over $27 billion in 2023.

TSMC is also expanding its presence in the United States by opening two new factories in Arizona and investing $40 billion in the region. This move demonstrates the company’s commitment to growing its operations in one of the world’s largest and most important markets. It also positions TSMC well to take advantage of the rising demand for microchip technology in the US and globally.

The biggest risk for TSMC is that it has become one of the most geopolitical companies in the world. It could come at risk if China decides to invade Taiwan. It is also unclear whether its global investments, especially in the US, will pay off.

2. Nvidia (NVDA)

• Market Cap: $3 trillion
• Dividend Yield: 0.0%
• 5-Year Return: 3,250%
• Country: USA

Nvidia Corp. is a technology company that designs and manufactures chips and graphics processing units for various industries, including gaming, data centres, artificial intelligence, personal computers, autonomous driving, and even cryptocurrency mining. This diversification across multiple industries positions the company to benefit from numerous growth drivers and reduce the risk of being exposed to any one market over the next decade.

Nvidia has become one of the most important companies globally with a market cap of over $3 trillion. Its revenue has jumped from over $10.9 billion in 2019 to over $60 billion in 2023. Most recently, its quarterly revenue jumped to over $24 billion, helped by the robust growth of artificial intelligence.

Nvidia is well-known for its advanced GPUs, which are used to power the biggest data centers in the world. The rising demand for AI has led to an unprecedented for its GPUs, which explains why its revenue is booming.

The company has more room to grow as the digitizing craze intensifies. However, there are concerns about its valuation since it is trading at a forward PE ratio of over 40. As we saw with Tesla, even the fastest companies tend to hit a growth barrier over time.

3. ASML (ASML)

• Market Cap: $409 billion
• Dividend Yield: 0.7%
• 5-year Return: 429%
• Country: Netherlands

ASML is one of the most important semiconductor companies in the world. While it is not a well-known brand, it is a familiar name in the technology company.

ASML manufactures the huge machines that companies like TSMC and Global Foundries use to create semiconductors. Its machines are highly expensive, with a unit costing over $300 million.

Its main advantage is that it is a near monopoly and attempts to recreate its products have largely hit a barrier. Over the years, its total revenue has jumped from over $13.2 billion in 2019 to over $30.4 billion in 2023.

ASML is also a highly profitable company whose net income has jumped from $2.9 billion to over $8.6 billion. Therefore, this is a good name because of its role in the semiconductor industry. However, the challenge is that geopolitics have affected how it does business in China, the biggest chip market. 

4. Advanced Micro Devices (AMD)

• Market Cap: $269 billion
• Dividend Yield: N/A
• 5-Year Return: 430%
• Country: United States

Advanced Micro Devices (AMD) is a technology company that has been operating for many years, but it has only recently become a major player in the semiconductor space. It works across four business segments: PCs, data centres, gaming, and embedded. This diversification across multiple industries positions the company to benefit from multiple growth drivers and reduce the risk of being exposed to any one market.

In recent years, AMD has made significant investments to expand its operations and increase its market share. One example of this is the acquisition of Xilinx for nearly $50 billion in 2022. This acquisition expands AMD’s presence in the embedded semiconductor sector and means the company could take advantage of the rising demand for these products.

AMD has also been investing in new technologies, such as developing its Ryzen processors, which are well-regarded by the gaming and PC communities. This has helped the company to increase its market share in these segments, which could drive future growth. The company’s revenue has jumped from $6.7 billion in 2018 to over $22.6 billion in 2023 and this growth trend will continue.

5. Applied Materials (AMAT)

• Market Cap: $183 billion
• Dividend Yield: 0.72%
• 5-Year Return: 437%
• Country: United States

Applied Materials is a good option for investors wanting a different approach to the industry. It doesn’t make semiconductors like other companies on our list, but it makes semiconductor manufacturing equipment used to develop chips and sells them to other businesses within the industry. As the semiconductor industry grows, AMAT can capitalise on more producers needing equipment.

Applied Materials manufactures its products in three key categories: semiconductor systems, applied global services, and display and adjacent markets. Some of its top markets are epitaxy, ion implant, rapid thermal processing, and chemical vapor deposition. It also makes atomic layer deposition and chemical mechanical planarization. All these products are used by companies that manufacture semiconductors.

Applied Materials has seen its revenue grow over the years. It has moved from over $14.6 billion in 2019 to over $26 billion in 2023. Its net income has soared from over $2.7 billion in 2019 to over $6.8 billion in 2023. 

Where to buy the best semiconductor stocks

You can buy any of the best semiconductor stocks on our list by visiting the brokers below. Click on any of the links to be taken to our recommended brokers and sign up in just a few minutes to buy the best semiconductor stocks.

4.6

eToro

Min. Deposit $100

Fees 1%

No. assets 3600+

Demo account Yes

Visit site

eToro review

eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.

4.5

Plus500

Min. Deposit $100

Fees From 2%

No. assets 2800+

Demo account Yes

Visit site

Plus500 review

This information is NOT relevant to EU residents who are to be serviced by EU subsidiaries of the Plus500 Group, such as Plus500CY Ltd, authorized by CySEC (Reg. 250/14). Different regulatory requirements apply in Europe, such as leverage limitations and bonus restrictions.

Best semiconductor stocks

Min. Deposit n/a

Fees -

No. assets n/a

Demo account -

Visit site

What is a semiconductor stock?

A semiconductor stock is a publicly traded company involved in the semiconductor industry. Semiconductors are materials used to create electronic devices and integrated circuits found in various products such as smartphones, computers, and cars.

Semiconductor companies design and produce the advanced chips and microprocessors that power technologies we use every day – from mobile devices and appliances to vehicles, data centres, and cutting-edge innovations like artificial intelligence. Leading chip manufacturers include Intel, Taiwan Semiconductor, Qualcomm, Nvidia, and Advanced Micro Devices Inc.

The semiconductor industry has experienced significant growth in recent decades with the increase of connected devices and the need for computing power. Semiconductor stocks can provide exposure to key long term trends like 5G networks, the Internet of Things, cloud computing, data analytics, and advanced mobility.

Evaluating semiconductor companies’ financial strength, product pipeline, and competitive advantages allows you to identify stocks poised for growth. Semiconductor index funds and ETFs provide diversified exposure to this essential tech industry.

Are semiconductor stocks a good investment?

Semiconductor stocks are a good investment for several reasons. Firstly, the semiconductor industry is rapidly growing with various applications, from consumer electronics to automobiles and industrial automation. As technology advances and more industries rely on semiconductors, the demand for these materials and the companies that produce them will likely increase. 

Secondly, semiconductor companies often have strong financials, including high-profit margins and equity returns. Many companies within the industry are leaders in their field, with solid research and development capabilities, which can lead to developing new and innovative products and increasing their market competitiveness. 

Due to these factors, many semiconductor companies have historically provided strong returns for investors and are considered excellent long-term investment opportunities. Whatever you decide to do, it’s a good idea to keep up to date with the latest developments and news in the semiconductor industry, which you can do on the links below.

Methodology: How we choose the best semiconductor stocks

At Invezz, our mission is to empower our readers with the most accurate and reliable financial information. Our curated selection of the best stocks in specific industries is designed to provide investors with well-researched, expertly reviewed stock recommendations. Our team follows a rigorous process to ensure our readers receive high-quality, trustworthy stock selections.

• Initial screening. Our team of experienced stock market analysts conducts an initial screening of stocks within the chosen industry. This involves analyzing a broad range of companies based on key financial metrics such as revenue growth, profitability, debt levels, and market capitalization.
• Earnings reports and financial analysis. Analysts review the latest earnings reports of shortlisted companies. This includes a detailed assessment of financial statements, looking for consistent earnings growth, strong balance sheets, and positive cash flow trends. Special attention is given to year-over-year performance and quarterly results.
• Sector analysis. A comprehensive sector analysis is conducted to understand the macroeconomic factors affecting the industry. This includes examining market trends, competitive landscape, regulatory changes, and technological advancements. Our analysts utilize industry reports, market research, and economic forecasts to gain a holistic view of the sector.
• Analyst recommendations. We consider recommendations from reputable sources such as Barron’s and Zacks. These sources provide expert opinions and ratings on stocks, which serve as an additional layer of validation for our selections. Incorporating external analyst recommendations ensures that our curated stocks are backed by a consensus of expert views.
• Internal review. After the initial selection by our analysts, the chosen stocks are reviewed by a sub-editor. The sub-editor ensures that the analysis is clear, concise, and adheres to Invezz’s editorial guidelines. This review process helps maintain the quality and readability of our content, making it accessible to a broad audience.
• Quarterly updates. To ensure our stock recommendations remain relevant and up-to-date, we update the curated section quarterly. Each update cycle involves re-evaluating the stocks based on the latest financial reports, industry developments, and market conditions. This regular update process ensures that our recommendations reflect the most current information available.

Our approach combines expert analysis, comprehensive research, and regular updates to deliver reliable and insightful investment recommendations. Read more about our review process and editorial policy.