4 Stocks to Boost Your Portfolio on Steady Jump in Semiconductor Sales

The semiconductor market has grown at a rapid pace over the past two years, thanks to the continued enthusiasm surrounding artificial intelligence (AI), especially generative AI. Tech stocks, powered by AI-focused and semiconductor stocks, have primarily been giving the broader market a boost.

A steady surge in investments in AI in 2025 has already proved that investors remain bullish about the profitability of these stocks.

Given this scenario, it would be ideal to invest in semiconductor stocks, such as Analog Devices ADI, NVIDIA Corporation NVDA, MACOM Technology Solutions Holdings, Inc. MTSI and Amtech Systems, Inc. ASYS. 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 Rise in November

Global semiconductor sales totaled $75.3 billion in November, jumping 3.5% month over month and 29.8% on a year-over-year basis from November 2024’s total of $58 billion, the Semiconductor Industry Association (SIA) reported on Jan. 8. This was also the highest sales ever recorded in November.

The jump in November follows a solid start to the fourth quarter, during which semiconductor sales totaled $72.7 billion in October, up 4.7% sequentially and 27.2% from the year-ago level. John Neuffer, SIA president and CEO, said, “The global semiconductor industry posted its highest-ever monthly sales total in November, with demand increasing across all major product categories on a month-to-month basis.”

The semiconductor market has been expanding at a steady pace, with sales totaling $208.4 billion in the third quarter, up 15.8% sequentially, according to SIA.

The semiconductor rally is being driven by growing excitement around AI and the resulting surge in demand for chips. The AI sector remains vast and largely untapped, prompting major technology companies to pump in billions of dollars into the space, while increasingly pointing to strong AI-driven business as a key source of their revenue growth.

AI-focused chips are now critical as their application spreads across a wide range of industries, from advanced data centers to common consumer devices. At the same time, demand for memory products such as NAND flash and DRAM is rebounding, helping meet more specialized computing needs and power AI-heavy workloads. In this environment, semiconductor stocks appear well-positioned for near-term gains.

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 the current year is 25.7%. The Zacks Consensus Estimate for current-year earnings has improved 5.3% over the past 60 days. ADI carries 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 54.9% 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 #1.

MACOM Technology Solutions Holdings

MACOM Technology Solutions Holdings 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 the current year is 20.5%. The Zacks Consensus Estimate for current-year earnings has improved 0.7% over the past 60 days. MTSI presently has a Zacks Rank #2.

Amtech Systems

Amtech Systems is engaged in the manufacture of several items of capital equipment, one of which is patented, used by customers in the manufacture of semiconductors. 

Amtech Systems’ expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved more than 100% over the past 60 days. ASYS presently has a Zacks Rank #1.

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

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