4 Stocks to Boost Your Portfolio on Solid Semiconductor Sales Growth

The semiconductor industry had a robust 2025, with sales skyrocketing on continued demand fueled by enthusiasm surrounding artificial intelligence (AI), especially generative AI. Tech stocks — led by AI-driven companies and semiconductor makers — have been a major force lifting the broader market.

A continued wave of AI investment in 2025 and this year shows that investors remain confident about the long-term profit potential of these stocks.

Given this scenario, it would be ideal to invest in semiconductor stocks, such as Analog Devices ADI, Silicon Laboratories Inc. SLAB, Taiwan Semiconductor Manufacturing Company Limited TSM and ASML Holding N.V. ASML, which have a great potential for growth this year.

Semiconductor Sales Continue to Soar

Semiconductor sales totaled $791.7 billion in 2025, a solid year-over-year jump of 25.6% from $630.5 billion, the Semiconductor Industry Association (“SIA”) reported last week.

Sales in the fourth quarter of 2025 totaled $236.6 billion, up 37.1% year over year and 13.6% sequentially. Also, global sales of semiconductors jumped to $78.9 billion in December, increasing 2.7% sequentially.

Sales were primarily driven by robust demand for logic and memory products. Sales of logic products surged to $301.9 billion in 2025, up 39.9%, while memory products totaled $223.1 billion, increasing 34.8% year over year.  

John Neuffer, SIA president and CEO, said, “The global semiconductor industry posted its highest-ever annual sales in 2025, nearly hitting $800 billion, and global sales in 2026 are projected to reach roughly $1 trillion.”

Microchips have been playing a key role in almost all modern and emerging technologies, such as IoT, 6G and AI. Also, demand in the auto industry has been driving sales. The AI sector is still huge and largely untapped, pushing major tech companies to pour billions into the space.

Specialized AI chips have become essential as their use expands from advanced data centers to everyday consumer devices. At the same time, demand for memory products like NAND flash and DRAM is picking up again, supporting more complex computing needs and AI-intensive workloads. Against this backdrop, semiconductor stocks look well placed for potential gains in the near term.

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 28%. The Zacks Consensus Estimate for current-year earnings has improved 2.7% over the past 60 days. ADI carries 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 the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 0.4% over the past 60 days. SLAB currently has a Zacks Rank #2.

Taiwan Semiconductor Manufacturing Company Limited

Taiwan Semiconductor Manufacturing Company Limited is the world's largest dedicated integrated circuit foundry. TSM manufactures ICs for its customers based on their proprietary IC designs using its advanced production processes. Taiwan Semiconductor Manufacturing Company Limited’s goal is to establish itself as one of the world's leading semiconductor companies by building upon the strengths that have made it the world's leading IC foundry.

Taiwan Semiconductor Manufacturing Company Limited’s expected earnings growth rate for the current year is 33%. The Zacks Consensus Estimate for current-year earnings has improved 15.7% over the past 60 days. TSM presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

ASML Holding N.V.

ASML Holding N.V. is a world leader in the manufacture of advanced technology systems for the semiconductor industry. ASML offers an integrated portfolio for manufacturing complex integrated circuits. ASML Holdingdesigns, develops, integrates, markets and services advanced systems used by customers, which are the major global semiconductor manufacturers, to create chips that power a wide array of electronic, communications and information technology products.

ASML Holding’s expected earnings growth rate for the current year is 18.8%. The Zacks Consensus Estimate for current-year earnings has improved 8% over the past 60 days. ASML currently carries 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