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 6 semiconductor stocks to watch in 2025

Our list of the top six semiconductor stocks to watch right now was selected based on the biggest constituents of the PHLX Semiconductor Index (SOX).  These companies are the top 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 six stocks in this article can be traded via CFDs or stock trading with IG UAE.

1. Nvidia (NASDAQ: NVDA)
 

Market cap: $4.17 trillion¹

Current focus: graphics processing units (GPUs) manufacturing

From a GPU manufacturer for gaming to a monolith in the world of semiconductors, Nvidia has grown in leaps and bounds. It’s been at the forefront of the most significant technological shift in decades – AI.

The company’s GPUs are uniquely suited for AI, particularly machine learning (ML) and deep learning (DL) applications. Its H100 and upcoming H200 data centre GPUs are critical for training large language models (LLMs).

Its financial performance has been spectacular, with its most recent earnings report indicating a 69% increase in revenue from a year ago.²

Highlights:

• Revenue of $44 billion in Q1 of its 2026 fiscal year, up 12% from the previous quarter³
• It paid a cash dividend of $0.01 per share in July 2025⁴
• Its Blackwell NVL72 AI supercomputer is currently in full-scale production across system makers and cloud service providers⁵

2. Broadcom (NASDAQ: AVGO)

Market cap: $1.32 trillion⁶

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

Broadcom’s design and manufacturing acumen underpin masses of data centre, networking, software, broadband, wireless, storage and industrial markets. It operates through a diversified portfolio of analogue, digital and mixed-signal integrated circuits.

Its business model relies on providing essential semiconductor solutions that enable connectivity and data processing in just about every electronic device you can think of.

The company has benefited from the AI boom – it reported a 25% increase in consolidated revenue from the previous year in its 2025 Q1 results.⁷

Highlights:

• Consolidated revenue of $14,916 million for the first quarter of the year⁸
• Adjusted EBITDA of $10,083 million for the first quarter – 68% of revenue⁹
• AI revenue for Q1 grew 77% year-over-year (YoY) to $4.1 billion¹⁰

3. Taiwan Semiconductor Manufacturing Company (TPE: 2330)

Market cap: ‪NT$28.79 trillion¹¹

Current focus: chip production

TSMC established the first pure-play foundry model, manufacturing chips designed by other companies rather than developing its own products. Taiwan is responsible for around 90% of the world’s most advanced chips, with companies like Nvidia outsourcing their actual production to TSMC.

Other notable clients include Apple, AMD and Qualcomm.

TSMC produces 3-nanometre technology, with plans to scale up to 2-nanometre mass production. These cutting-edge processes are critical for smartphone processors, AI chips and high-performance computing components.

Highlights:

• First quarter 2025 revenue was $25.53 billion¹²
• Gross margin for Q1 was 58.8%, operating margin was 48.5% and net profit margin was 43.1%¹³
• Advanced technologies (7-nanometre or better) accounted for 73% of total silicon wafer revenue¹⁴

4. ASML Holding (NASDAQ: ASML)

Market cap: €273.73 billion¹⁵

Current focus: EUV lithography systems

ASML has a virtual monopoly in the semiconductor industry – it holds the technology for extreme ultraviolet (EUV) lithography systems, which are crucial in advanced chip manufacturing. It’s the only company that supplies the machines needed to make the tiniest semiconductor features.

EUV lithography uses light with wavelengths of just 13.5 nanometres to etch intricate and fine patterns onto silicon wafers. Each machine capable of this costs over $200 million and takes years to create.

This means there are extreme barriers to entry for competitors, giving ASML a unique position in the market.

Highlights:

• Second quarter 2025 results indicate net sales of €7.7 billion¹⁶
• It produced a gross margin of 53.7% in Q2¹⁷
• The company expects a full-year 2025 total net sales increase of roughly 15% relative to 2024¹⁸

5. Advanced Micro Devices (NASDAQ: AMD)

Market cap: $7.41 billion¹⁹

Current focus: CPUs and GPUs

From a struggling semiconductor business to a key player in the central processing unit (CPU) and GPU markets, AMD is a semiconductor stock that’s definitely worth keeping an eye on.

Its comeback started in 2017 with the development of the Zen CPU architecture, which delivered performance the company hadn’t been able to achieve in decades.

It’s gaining significant market share in the data centre market, taking away business mostly from Intel. It also competes with Nvidia in the graphics market with its Radeon GPUs.

Highlights:

• First quarter 2025 revenue was $7.4 billion²⁰
• It grew first-quarter revenue by 36% YoY²¹
• Operating income in Q1 was $806 million²²

6. Texas Instruments Corporation (NASDAQ: TXN)
 

Market cap: $198.37 billion²³

Current focus: analogue and embedded processing semiconductors

Texas Instruments represents one of the most diversified semiconductor companies globally, with its beginnings dating back to 1930.

The company originally focused on defence electronics and engineering services, but has since evolved into an analogue and embedded processing semiconductor supplier across just about every electronic market.

Its semiconductor products, including amplifiers, data converters, power management devices, processors and more, manage power, process signals and control functions in electronic systems.

Its products are used in applications across industries, such as the automotive sector, personal electronics and communications equipment.

Highlights:

• First quarter 2025 revenue of $4.07 billion²⁴
• Its most recent earnings per share (EPS) data indicate an amount of $1.28²⁵
• Net income Q1 2025 was $1.18 billion²⁶

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 available for direct ownership
3. Choose the stock you want to buy – try our stock screener
4. Determine how many shares you want to purchase
5. Place your order
6. Monitor your investment and collect any dividends

FAQs about semiconductor stocks

Footnotes
 

1. TradingView, July 2025
2. Nvidia earnings report, May 2025
3. Nvidia earnings report, May 2025
4. Nvidia earnings report, May 2025
5. Nvidia earnings report, May 2025
6. TradingView, July 2025
7. Broadcom earnings report, March 2025
8. Broadcom earnings report, March 2025
9. Broadcom earnings report, March 2025
10. Broadcom earnings report, March 2025
11. TradingView, July 2025
12. TSMC earnings report, April 2025
13. TSMC earnings report, April 2025
14. TSMC earnings report, April 2025
15. TradingView, July 2025
16. ASML Holding earnings report, July 2025
17. ASML Holding earnings report, July 2025
18. ASML Holding earnings report, July 2025
19. TradingView, July 2025
20. AMD earnings report, May 2025
21. AMD earnings report, May 2025
22. AMD earnings report, May 2025
23. TradingView, July 2025
24. Texas Instruments Corporation earnings report, April 2025
25. Texas Instruments Corporation earnings report, April 2025
26. Texas Instruments Corporation earnings report, April 2025