Buy 5 Solid Semiconductor Stocks of 2025 With Room for Growth in 2026

The semiconductor market had a remarkable year, with more room to grow in 2026, thanks to robust demand from various industries and the ongoing enthusiasm surrounding artificial intelligence (AI). Semiconductor stocks, especially those focused on AI, have been responsible for the broader tech rally this year.

A steady surge in sales throughout the year, along with hefty investment in AI, is fueling optimism that the semiconductor market could be poised for a strong run in 2026.

Given this scenario, it would be ideal to invest in semiconductor stocks, such as Analog Devices ADI, MACOM Technology Solutions Holdings, Inc. MTSI, Silicon Laboratories Inc. SLAB and NVIDIA Corporation NVDA. Each of these stocks carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Semiconductor Sales Witness Steady Growth

Global semiconductor sales totaled $208.4 billion in the third quarter of 2025, increasing 15.8% from the second quarter, according to the Semiconductor Industry Association (SIA).  Also, the final quarter of the year started on a high, with sales totaling $72.7 billion in October, increasing 4.7% sequentially and 27.2% year over year from October 2024’s total of $57.2 billion.

The surge comes after a solid first and second quarter. Chip sales totaled $179.7 billion in the second quarter, a 7.8% rise from the first quarter. This follows a robust 2024, during which chip sales totaled $627.6 billion, representing a 19.1% increase from $526.8 billion in 2023.

Semiconductor sales declined after the COVID-19 pandemic in 2020, and the market remained stagnant till 2022. However, the sudden enthusiasm surrounding AI since the second half of 2023 saw semiconductor sales rebound.

This year has been impressive for microchips, with enthusiasm surrounding AI fueling demand. The AI sector remains vast and largely untapped, and major tech companies are pumping in billions of dollars while increasingly crediting AI-driven demand for their revenue growth.

Industry heavyweights, such as Amazon.com Inc. AMZN, Microsoft Corporation MSFT and NVIDIA Corporation, have recently signed major AI deals that are widely expected to drive higher demand for semiconductors.

Semiconductor Equipment and Materials International (SEMI), in its Year-End Total Semiconductor Equipment Forecast—OEM Perspective report, has forecast global sales of semiconductor manufacturing equipment by OEMs to hit a record $133 billion, as reported by BISinfotech. The report also forecasts sales to reach $145 billion in 2026 and $156 billion in 2027.

4 Semiconductor Stocks With Growth Potential

Analog Devices

Analog Devices is an original equipment manufacturer of semiconductor devices, specifically, analog, mixed-signal and digital signal processing (“DSP”) integrated circuits. ADI’s product line comprises amplifiers and comparators; analog to digital converters; digital to analog converters; video encoders and decoders; embedded processing products and DSPs; MEMS and temperature sensors; RF/IF components and converters; power and thermal management ICs, audio/video converters, amplifiers, CODECs, filters and processors. Analog Devices also offers analog, digital and RF switches and multiplexers; analog microcontrollers; clock and timing products.

Analog Devices’ expected earnings growth rate for next year is 12%. The Zacks Consensus Estimate for current-year earnings has improved 5.3% over the past 60 days. ADI carries a Zacks Rank #2.

MACOM Technology Solutions Holdings, Inc.

MACOM Technology Solutions Holdings, Inc. is a provider of power analog semiconductor solutions to varied markets. MTSI develops and produces analog radio frequency, microwave and millimeter wave semiconductor devices, and components for applications in optical, wireless and satellite networks. MACOM Technology Solutions Holdings primarily serves three markets, namely, data center, industrial & defense and telecom.

MACOM Technology’s expected earnings growth rate for next year is 16.5%. The Zacks Consensus Estimate for current-year earnings has improved 3.7% over the past 60 days. MTSI has a Zacks Rank #2.

Silicon Laboratories

Silicon Laboratories Inc. is a leading provider of silicon, software and solutions for the Internet of Things, Internet infrastructure, industrial automation, consumer and automotive markets. SLAB solves the electronics industry's toughest problems, providing customers with significant advantages in performance, energy savings, connectivity and design simplicity.

Silicon Laboratories’ expected earnings growth rate for next year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 28.6% over the past 60 days. SLAB currently has a Zacks Rank #2.

NVIDIA Corporation

NVIDIA Corporation is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit, or GPU. Over the years, NVDA’s focus has evolved from PC graphics to AI-based solutions that now support high-performance computing, gaming and virtual reality platforms.

NVIDIA has an expected earnings growth rate of 55.2% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 4.5% over the last 60 days. NVDA presently has a Zacks Rank #2.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research