3 Top Semiconductor Stocks To Buy For 2025


Image Source: PixabayAs we approach the new year, investors will be evaluating the best stocks to consider, with the technology sector certainly of interest.Semiconductor stocks will be targeted in particular, thanks to their reach in configuring artificial intelligence. That said, here are three of the top semiconductor stocks to invest in going into 2025.  

Broadcom – AVGO

YTD Performance: +116%One company leveraging the demand for AI chips of late is Broadcom (AVGO – Free Report) which is a key supplier to Apple (AAPL – Free Report). Designing custom AI accelerators for data centers, Broadcom recently announced it secured two hyper-scale data center customers which are rumored to be Alphabet (GOOGL – Free Report) and Meta Platforms (META – Free Report) or the likes of Amazon (AMZN – Free Report) and Microsoft (MSFT – Free Report).These strategic partnerships have made Broadcom’s growth narrative very appealing with the company thought to be the second-largest AI semiconductor supplier. 

Nvidia – NVDA
 YTD Performance: +176%We’ll pivot to the largest AI chipmaker Nvidia (NVDA – Free Report). While Nvidia’s Blackwell series AI chips have faced some challenges with overheating they are considered the highest-performing AI chips on the market.Furthermore, Nvidia’s H100 and H200 series chips have sparked considerable growth with the company’s total sales projected at $129.02 billion in its current fiscal 2025. This is an increase of over 1000% from the start of the current decade with 2020 sales at $10.91 billion.Zacks Investment ResearchImage Source: Zacks Investment ResearchAstonishingly, the price performance of NVDA has more than doubled the percentage growth the company has seen on its top line making it noteworthy that FY26 sales are projected to increase another 48% to $191.84 billion.Zacks Investment Research
Image Source: Zacks Investment Research

Taiwan Semiconductor – TSM
 YTD Performance: +94%Last but not least is Taiwan Semiconductor (TSM – Free Report) which is also a key supplier for Apple as the world’s largest provider of integrated circuit foundries (ICs). While Taiwan Semiconductor doesn’t manufacture AI chips directly, it provides the foundries that help other companies produce AI chips including Nvidia.What may appeal to investors is that TSM has the cheapest P/E valuation on the list at 29.2X forward earnings. Even better, Taiwan Semiconductor is expected to post double-digit top and bottom-line growth this year and in FY25.Zacks Investment Research
Image Source: Zacks Investment ResearchBottom LineWith the global market for artificial intelligence presumed to be worth trillions in the coming years, these top semiconductor stocks should be lucrative investments going into 2025. To that point, Broadcom, Nvidia, and Taiwan Semiconductor should continue to encompass this appealing growth narrative.  More By This Author:4 Best Dividend Stocks To Watch In 2025 Uncover These 5 Undervalued Tech Giants Before They Skyrocket In 20253 Non-Ferrous Metal Mining Stocks To Consider Amid Industry Concerns

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