Top semiconductor stocks to watch in 2025  

What are semiconductor stocks?

Semiconductor stocks (also known as computer chip stocks) are the shares of publicly traded companies that design, manufacture and distribute semiconductor devices and related technology.

With the rise of AI, stock trading semiconductor shares has boomed. They’re a crucial element in many essential daily items.

What is a semiconductor?

A semiconductor is a material with electrical conductivity between a conductor (such as copper) and an insulator (like rubber). It allows tiny circuits to be embedded into it and can be used to conduct electricity in some instances and block it in others.

Silicon, a material used in semiconductors, is known as an intrinsic semiconductor, which means it’s neither a conductor nor an insulator, but rather, displays properties in between the two.

Semiconductors are used in every electronic you can think of – kitchen appliances, smartphones, cars, electrical switches, computers and so much more.

How are semiconductor stocks affected by geopolitical factors?

Semiconductor stocks are significantly affected by geopolitical factors due to their strategic importance and global supply chains.

Tensions between countries like China and Taiwan could have a hugely negative effect on semiconductor stocks, disrupting the manufacturing process, among other consequences. Similarly, US-China relations and the trade war directly affect semiconductor stocks’ abilities to produce, design or distribute their products at set costs, which can cause shortages and drive up computer chip prices even further.

It's, therefore, important to be aware that, while semiconductor stocks are a hot item at the moment, they can be extremely volatile, and you might lose the money you put into these shares. 

Advantages of semiconductor stocks

Stock trading semiconductor shares can have significant advantages for investors, particularly if they have a solid risk management plan in place.

• High-return potential: there is great potential to gain substantial returns on semiconductor stocks, due to them being crucial in our daily lives
• Diversification: because the semiconductor market is so varied, you can trade stocks in all phases of their production and distribution. The stocks we picked in this list cover a range of different processes in the semiconductor industry
• Lack of competition: the barrier to entry into the computer chip market is high, with monumental amounts of money and technology needed to enter. Existing semiconductor companies are, therefore, in a unique position where they aren’t likely to see new competitors, although this isn’t a definitive statement
• AI growth: with the rise in AI use, semiconductors are only going to become more important in everyday life, indicating exponential growth for the industry

Risks of semiconductor stocks

It’s just as vital to be aware of the risks of trading semiconductor stocks as you are of the benefits.

• Geopolitical risk: as we mentioned earlier, geopolitical risk is a real danger for semiconductor shares. Trade and political relations between countries that are heavily involved in the computer chips sector could cause supply chain disruptions, heavier taxes on equipment and components and lack of availability of materials
• Regulatory risk: AI is increasingly being seen as a matter for governments to get involved in, due to its countless applications, including in defence and warfare. If countries crack down on the production and distribution of AI-powered elements (like computer chips), the entire sector could see a great deal of volatility
• Technological obsolescence: with the mighty pace that semiconductor companies are setting in technological advances, it could be easy for some to fall behind if they don’t constantly focus on research and development (R&D) and innovation 

Top 5 semiconductor stocks to watch in 2025

Our list of the top five semiconductor stocks to watch right now was selected based on the biggest constituents of the PHLX Semiconductor Index (SOX). These companies are the giants in the world of computer chips and are likely to continue their domination in the coming months and years. Of course, this isn’t guaranteed.

Overview of the stocks in this article

All five stocks in this article can be traded via CFDs or stock trading with IG UAE.

All figures are accurate as of 22 October 2025.

1. Nvidia (Nasdaq: NVDA)

Market cap: US$4.40 trillion¹

Current focus: graphics processing units (GPUs) manufacturing

Nvidia has transformed from a graphics-chip maker into the dominant provider of hardware and software for artificial intelligence, machine learning and high-performance computing.

Its GPUs are now the de facto standard for training large AI models and accelerating data-centre workloads. Beyond chips, Nvidia has built a software and platform ecosystem – CUDA, cuDNN and the enterprise-focused Nvidia AI stack – that creates strong customer lock-in: many AI workloads are optimised specifically for Nvidia’s architecture.

For stock traders, that ecosystem effect means durable competitive advantages and pricing power; for CFD traders, Nvidia’s stocks often show high volatility tied to product cycles, earnings surprises and news about AI adoption.

For CFD traders, news-driven intraday moves around product announcements, partner deals and macro sentiment can create trading opportunities, but those same forces raise risk.

Highlights:

• The company’s year-to-date (YTD) stock price has seen an impressive 33.21% climb²
• In its FY26 Q2 earnings report, the company indicated revenue exceeded expectations – up 56% year over year (YoY) to US$46.7 billion³
• Its revenue outlook for FY26 Q3 is around US$54 billion⁴

2. Broadcom (Nasdaq: AVGO)

Market cap: US$1.62 trillion⁵

Current focus: enabling connectivity and data processing with products like Wi-Fi and Bluetooth chips, and network processors in data centres

Broadcom mixes semiconductor products (networking, storage, broadband) with a growing enterprise-software portfolio acquired over recent years. Its commercial strategy emphasises high-margin, mission-critical products and recurring software revenue, creating diversified cash flows less tied to cyclical semiconductor swings.

The company’s semiconductor lines supply connectivity and infrastructure components used by data centres, telecoms and storage. The software acquisitions – aimed at infrastructure automation, security and mainframe tools – provide recurring revenue and cross-sell opportunities.

For stock traders, Broadcom represents a different risk/reward profile: it’s not just a chipmaker but a technology consolidator focused on stable, often contractual revenue streams.

For CFD traders, its price moves can react to acquisition news, earnings cadence and business spending cycles.

Highlights:

• Broadcom’s stock price has increased by 45.10% YTD⁶
• The company’s partnership with Anthropic is promising, with analysts predicting a 30% upside in the next 12 months[3] partly due to this relationship

3. Taiwan Semiconductor Manufacturing Company (TPE: 2330)

Market cap: ‪NT$38.38 trillion⁸

Current focus: chip production

TSMC is the world’s largest contract chip manufacturer. It produces semiconductors for many of the biggest tech companies, including Apple, AMD and Nvidia. These companies design their chips but rely on TSMC to actually make them, using some of the most advanced tech on the planet.

Because nearly all major electronics rely on TSMC’s manufacturing, the company sits at the centre of the global tech supply chain.

For stock traders, TSMC offers steady long-term growth as demand for smaller, faster and more efficient chips rises.

For CFD traders, its share price often moves with industry cycles, new chip production announcements and geopolitical news – particularly given Taiwan’s key role in global technology.

Building new factories is extremely expensive, so TSMC’s ability to invest in cutting-edge production is one of its biggest advantages. However, its location and high capital costs also create unique risks.

Highlights:

• Its stock price has soared 36.45% YTD⁹
• As per the company’s latest earnings, quarterly revenue and net profit margin were up substantially, with the former being US$33.10 billion and the latter 45.7%¹⁰
• FY25 Q4 guidance indicates revenue of up to US$33.4 billion¹¹

4. ASML Holding (Nasdaq: ASML)

Market cap: €339.89 billion¹²

Current focus: EUV lithography systems

ASML is a Dutch company that makes the advanced machines used to manufacture the world’s most powerful chips. Its technology, known as extreme ultraviolet (EUV) lithography, is so advanced that no other company can currently match it. That means every major chipmaker, from TSMC to Intel, relies on ASML’s equipment to produce cutting-edge semiconductors.

Because ASML has such a unique position, it benefits whenever the chip industry invests in new factories or upgrades production lines.

For stock traders, it’s a strategic long-term play on the continued growth of the semiconductor sector. For CFD traders, share price movements are often tied to customer orders, global chip demand and supply-chain developments.

ASML’s challenge is meeting high demand while managing complex global supply relationships and export restrictions. Still, its near-monopoly on EUV machines gives it strong pricing power and stable long-term prospects.

Highlights:

• Another company on our list with an impressive stock price increase – 31.67% YTD¹³
• In its latest earnings report, it stated that it had made €7.5 billion in net sales, along with €2.1 billion net income in FY25 Q3¹⁴
• Its gross margin figure stood at 51.6% during the same period¹⁵

5. Advanced Micro Devices (Nasdaq: AMD)

Market cap: US$386.29 billion¹⁶

Current focus: CPUs and GPUs

AMD has undergone an impressive transformation over the past decade. Once seen as a smaller rival to Intel, it now competes strongly across multiple markets, including computer processors, gaming graphics cards and data-centre chips. Its focus on performance and value has helped it win back significant market share.

For stock traders, AMD offers exposure to several fast-growing areas such as cloud computing, gaming and AI acceleration. Its strategy is built around innovation, partnerships with major tech firms and efficient chip design.

For CFD traders, AMD’s stocks are known for being active and responsive to product launches, competitor news and overall demand in the semiconductor market.

AMD’s main challenge is keeping up its pace of innovation in a fiercely competitive industry. It relies on external manufacturers like TSMC to produce its chips, which can create supply constraints during boom periods.

Highlights:

• With the highest stock price increase on our list, AMD’s shares are up 94.64% YTD and 159.89% over the past six months¹⁷
• Its FY25 Q2 earnings indicated record revenue of US$7.7 billion and 40% gross margin¹⁸
• Diluted earnings per share was US$0.54¹⁹

How to trade semiconductor stocks with IG UAE

CFDs

1. Open a CFD trading account with IG UAE
2. Search for semiconductor stocks on the IG platform
3. Decide whether to go long (buy) or short (sell)
4. Choose your position size
5. Set stop-loss and limit orders
6. Place your trade and monitor it

Stock trading

1. Open a stock trading account with IG UAE
2. Search for semiconductor stocks
3. Choose the stock you want to buy – try our stock screener
4. Determine how many stocks you want to purchase
5. Place your order
6. Monitor your investment and collect any dividends

FAQs about semiconductor stocks

Footnotes
 

1. TradingView, October 2025
2. TradingView, October 2025
3. Nvidia, September 2025
4. Nvidia, September 2025
5. TradingView, October 2025
6. TradingView, October 2025
7. Yahoo! Finance, October 2025
8. TradingView, October 2025
9. TradingView, October 2025
10. TSMC, October 2025
11. TSMC, October 2025
12. TradingView, October 2025
13. TradingView, October 2025
14. ASML, October 2025
15. ASML, October 2025
16. TradingView, October 2025
17. TradingView, October 2025
18. AMD, August 2025
19. AMD, August 2025