From powering smartphones and laptops to enabling the AI revolution and electric vehicles, semiconductors are the backbone of modern technology. That’s why many investors are looking to gain exposure to this booming industry.
If you’re wondering which are the best semiconductor stocks to invest in right now, we’ve got you covered.
Let’s explore the top semiconductor stocks and ETFs in 2025, why they’re worth watching and how you can confidently get started investing in this high-demand sector.
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Best Semiconductor Stocks in 2025
The CHIPS and Science Act, passed in 2022, was intended to stimulate semiconductor research, development and production in the U.S. This country currently produces only about 10% of the world’s semiconductors, but this law aims to increase that number and reduce reliance on chips imported from Asia.
This bill, along with the insatiable global demand for chips, could represent a significant opportunity for semiconductor stocks.
These chipmakers and enablers are making major waves in the global economy:
Stock | Ticker | Market Cap | Dividend Yield | Current Share Price | S/S |
|---|---|---|---|---|---|
NVIDIA | NVDA | $2.66 Trillion | .04% | $108.91 | 36x |
Qualcomm | QCOM | $149.5 Billion | 2.40% | $135.21 | 14x |
Advanced Micro Devices | AMD | $157 Billion | THAT | $96.65 | 96x |
Intel Corp. | INTC | $87 Billion | THAT | $19.98 | THAT |
Broadcom | AVGO | $926 Billion | 1.23% | $197.33 | 1.23% |
Why Invest in Semiconductor Stocks?
Investing in semiconductor stocks may provide investors with a way to add to their existing portfolio. Here are reasons why it’s a good investment:
High demand for semiconductors: Semiconductors are in almost everything. They power the modern economy.
Dividends are possible: Some semiconductor stocks also offer dividends.
Strong historical performance: Chip stocks like NVIDIA, AMD and Broadcom have delivered massive long-term returns.
Semiconductor Stocks vs. Other Investment Options
How do semiconductor stocks compare to other investments? Check out this chart that compares semiconductor stocks with other investment options.
Investment Type | Pros | Cons |
|---|---|---|
Semiconductor stocks | -High growth-Long-term growth potential | -High volatility-High risk |
Small-Cap ETFs | -High reward | -Risk is high |
Large-Cap ETFs | -Steady growth | -Lower potential growth than smaller cap |
Crypto | -High growth potential | -Extreme high risk -High volatility |
Gold/Precious metals | -Sound investment during volatile economic times | -Does not generate income |
Risks of Investing in Semiconductor Stocks
Although semiconductor stocks may seem like a good buy, there are certain risks associated with this investment. These risks are as follows:
Cyclical industry: Semiconductor stocks depend on global demand. Stock prices rise and fall based on demand.
Supply chain disruptions: You can encounter supply chain disruptions with semiconductor stocks.
Reliance on a few customers: Many semiconductor stocks rely on a few customers.
Regulatory control: Governments can place licensing and export restrictions, which can slow down expansion.
Trends Shaping Semiconductor Stocks
Here are some of the trends that are shaping the semiconductor industry:
Continued momentum in key sectors: Investment in AI, cloud computing and digital transformation will help move the trajectory of semiconductor stocks. Companies like Nvidia, AMD, Broadcom and TSMC will fuel this growth.
Massive investment in chips: The CHIPS and Science Act continues to funnel billions in chip fab construction and research and development. This domestic investment will help fuel growth in Intel and Texas Instruments.
Global supply diversification: Pulling back from China and Taiwan will reshape global production. It can also help the growth of U.S. companies.
How to Buy Semiconductor Stocks
Here’s how to move forward with buying semiconductor stocks:
Step 1: Choose a brokerage platform – Choose a platform that supports buying semiconductor stocks.
Step 2: Do your research – Look into companies that are established or are high-growth players.
Step 3: Find the company ticker – Look for the company ticker on the platform.
Step 4: Decide how much you want to invest – You may want to evaluate your full portfolio before investing. You can consult with a financial planner too.
Step 5: Place the trade – Click buy and select the number of shares you’d like to purchase.
Final Take to GO: Should You Invest in Semiconductor Stocks?
If you believe in the future of AI, EVs, and digital transformation, semiconductors are a must-watch sector. While they can be volatile, the long-term growth story is compelling.
Whether you’re a beginner or a seasoned investor, owning some of the best semiconductor stocks or ETFs can help position your portfolio for tech-driven success.
Ready to explore? Compare brokerages, research your first semiconductor ETF or review our smart investing tips to get started today.
FAQs About Semiconductor Stocks
Here are the answers to some of the most frequently asked questions regarding which are the best semiconductor stocks:
What are the best semiconductor stocks for beginners?
NVIDIA (NVDA), Taiwan Semi (TSM) and Broadcom (AVGO) are strong starting points with market leadership and strong financials.
Are semiconductor stocks a good investment in 2025?
Yes — demand for chips is growing across nearly every sector, making semiconductors a key growth engine.
Which semiconductor stocks pay dividends?
Intel (INTC), Broadcom (AVGO) and TSMC (TSM) offer solid dividends, great for long-term investors.
Are semiconductor ETFs safer than buying individual stocks?
Generally, yes. ETFs like SOXX and SMH offer instant diversification, reducing the risk of betting on a single company.
Information is accurate as of May 8, 2025.
Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.
This article originally appeared on GOBankingRates.com: Best Semiconductor Stocks To Watch or Invest In Right Now
