Are these the best semiconductor stocks to watch in 2025/2026?
Explaining the significance of semiconductor companies, and a rundown of some of the best semiconductor stocks to watch. These are the five largest semiconductor stocks in the world by market capitalisation.
Semiconductor companies are those involved in the design, manufacturing, and distribution of semiconductor devices and related technology.
Semiconductors explained
Semiconductors — or microchips — are essential to the functioning of electronic devices and have recently seen particular investor interest given the rise of the AI sector. Without semiconductors, there would be no computers, smartphones, gaming, or a hundred other applications, all of which are essential to 21st century living.
OpenAI’s revolutionary ChatGPT chatbot, the growing political importance of AI development, and Nvidia’s dizzying rally are all testament to the importance of the sector. With significant growth in AI interest expected through the next decade and beyond, investing in semiconductor stocks within a diversified portfolio could be an attractive proposition.
For context, giants including Intel and ASML consider that annual global spending on semiconductors will rise to $1 trillion by 2030, up from just $570 billion in 2022. It’s also worth noting that China and the US are both attempting to harm each other’s ability to use advanced semiconductors to develop AI technology; the US through export bans of certain semiconductors and China through export bans of certain critical minerals. The two countries are also currently in a trade war where high tariffs could significantly impact the manufacturing process and profit margins of many tech companies.
Best semiconductor stocks to watch
Before delving into some of the most popular individual semiconductor shares, it’s worth highlighting that there are many popular, diversified ETFs which offer exposure into multiple companies on a low cost basis.
For example, the Vaneck Vectors Semiconductor UCITS ETF holds 25 of the world’s largest semiconductor companies and is a common choice for investors who want broad exposure to the sector without the need to conduct additional research.
In terms of individual shares, the five stocks listed below are widely considered to be the largest AI companies in the world by market capitalisation right now. However, analysts disagree on what exactly constitutes a semiconductor stock, and further, these may not be the best value opportunities.
Nvidia
Nvidia shares have been on a dizzying rally to a $4.3 trillion valuation, rising by 1,202% over the past five years. The microchip behemoth is arguably the most popular semiconductor stock in the world — though of course, popularity does not mean it is the best investment available.
Nvidia CEO and founder Jensen Huang in 2025 enthused that ‘accelerated computing and generative AI have hit the tipping point. Demand is surging worldwide across companies, industries and nations…NVIDIA RTX, introduced seven years ago, is now a massive PC platform for generative AI, enjoyed by 100 million gamers and creators.’
Fiscal Q2 results saw Nvidia’s revenue rise by 55% year-over-year to some $54.66 billion, including record data centre revenue of $41.09 billion, up by 56%.
However, there are risks. Nvidia has a huge price-to-earnings ratio, alongside significant exposure to a faltering Chinese economy and rising Sino-US export tensions.
Market cap: $4.3 trillion
Nvidia weekly candlestick chart
Taiwan Semiconductor Manufacturing Company
While Nvidia is touted as the ‘picks and shovels’ semiconductor stock for 2025, this crown could arguably belong to Taiwan Semiconductor Manufacturing Company (TSMC). Most chip producers — including Nvidia — outsource actual production to the Taiwanese company, with the country responsible for making circa 90% of the world’s most advanced chips.
TSMC shares have risen by 62% in the past year, driven by AI-chip demand, its colossal manufacturing capacity and the wide economic moat surrounding starting up any sizeable competitor.
However, Taiwan’s complex political status, including its relationship with China and the impact of US tariffs remain a long-term risk. The company recently announced plans to build a second semiconductor manufacturing plant in Japan.
Market cap: $1.24 trillion
TSMC weekly candlestick chart
Broadcom
Broadcom may not be the most fashionable name in the semiconductor world, but the company’s designs and manufacturing acumen underpins masses of data centre, networking, software, broadband, wireless, storage, and industrial markets.
In fiscal Q3 results, Broadcom saw revenue rise by 22% year-over-year to $15.95 billion, with $7.02 billion in free cash flow. This strong performance was largely driven by its infrastructure software and AI semiconductor solutions.
CEO Hock Tan is optimistic for Broadcom’s performance claiming that “we expect continued strength in AI semiconductor revenue as hyperscale partners continue to invest in AI XPUs and connectivity solutions for AI data centres."
Despite this, heightened US-China trade tensions could negatively impact performance.
Market cap: $1.66 trillion
Broadcom weekly candlestick chart
ASML
ASML is a world leader in chip-making equipment. It’s a common misconception that the company actually makes semiconductors; it does not. It designs and manufactures the lithography machines that are an essential component in microchip manufacture and is therefore indispensable within the wider supply chain. Customers include TSMC, Samsung and Intel.
In its Q3 results, the semiconductor stock delivered €7.52 billion in net sales (revenue) as gross margin reached 51.6%, both of which were in line with guidance.
The company expects to grow throughout 2026, with AI remaining a key driver of growth. However, uncertainty around US-China trade tensions may impact ASML’s growth.
Market cap: $390 billion
ASML weekly candlestick chart
Samsung (Semiconductor division)
Samsung’s semiconductor division is one of the pillars of the global chip industry and a key rival to TSMC in advanced memory and logic manufacturing.
While Samsung Electronics is best known to consumers for its smartphones and televisions, its semiconductor arm — spanning memory chips, foundry services, and system LSI — is responsible for a substantial share of the company’s total profits and global technological influence.
The division is the world’s largest producer of memory chips, including DRAM and NAND flash, which are critical components for data centres, mobile devices, and AI hardware. It also operates a fast-growing foundry business, manufacturing advanced logic chips for third-party clients. Customers include major global technology firms across computing, mobile, and automotive industries.
In its Q2 2025 results, Samsung Electronics reported revenue of ₩74.56 trillion (≈ $52 billion), with operating profit at ₩4.67 trillion (≈ $3.3 billion), marking a sharp recovery from the 2023 downturn in memory prices. The rebound has been fuelled by a resurgence in AI-driven demand for high-bandwidth memory (HBM) and solid-state storage.
Looking ahead, Samsung plans to invest heavily in its Pyeongtaek and Taylor (Texas) fabs as it races to catch up with TSMC in the 3-nanometre and 2-nanometre process nodes.
While the company faces cyclical pressures and geopolitical uncertainties surrounding chip exports to China, it remains a cornerstone of global semiconductor supply.
Market cap: $435 billion
Samsung Electronics weekly candlestick chart
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Top semiconductor stocks summed up
Given the increased adoption of AI, which is only expected to accelerate, the demand for powerful semiconductors is expected to rise and semiconductor stocks could perform very well. Despite this, potential tariffs could pose challenges for these companies.
Nvidia, Broadcom, Taiwan Semiconductor Manufacturing Company and ASML are some the best performing semiconductor stocks based on market cap. Whilst not a pure semiconductor company, Samsung Electronics also has growth potential.
These are just a selection of some of the best semiconductor stocks available. Always do your research and remember past performance is not a guide for future returns.
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