10 Fastest-Growing Semiconductor Stocks to Buy

Industry Overview - The semiconductor industry has rebounded in 2024 after a downturn in 2023, entering an AI-driven growth phase with global chip sales projected to reach approximately $728 billion in 2025, a 15% increase year-over-year, and nearly $800 billion in 2026, driven by demand for Memory and Logic chips used in AI systems [1] - Capital spending trends indicate that global investment in 300mm fab equipment is expected to exceed $100 billion in 2025, rising to around $116 billion in 2026 and $138 billion by 2028, fueled by AI compute demand and regional supply-chain diversification [2] - The semiconductor industry is expected to experience sustained double-digit growth through 2027, supported by advancements in High Bandwidth Memory (HBM), CoWoS/2.5D packaging, and capacity scaling from N3 to N2 nodes [5] Demand Dynamics - AI compute demand is a dominant force, with NVIDIA reporting Q3 FY26 revenue of $57 billion, of which $51.2 billion came from its Data Center unit, marking a 66% year-over-year increase [3] - TSMC has raised its 2025 capital expenditure guidance to $40–$42 billion, focusing on investments in N3/N2 nodes and advanced packaging, although AI demand for advanced-node capacity currently exceeds supply by a ratio of 3-1 [3] Supply Constraints - Memory and packaging are identified as the most constrained layers in the semiconductor stack, with High Bandwidth Memory (HBM) becoming critical for AI workloads; SK hynix is projected to hold a ~65% market share in HBM through 2026, with sold-out supply windows reported [4] - Micron Technology is investing $9.6 billion in a new HBM facility in Japan to expand its capacity [4] Company Highlights - Advanced Micro Devices, Inc. (NASDAQ:AMD) has shown a revenue growth of 31.83% year-over-year and a 3-year revenue growth of 11.95%, with a strong analyst consensus rating of Buy or equivalent from over 80% of analysts [9][10] - AMD's recent advancements include the training of ZAYA1, a large-scale Mixture-of-Experts foundation model on its Instinct MI300X GPUs, which outperformed several benchmarks against competitors [11][12] - MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) reported a revenue growth of 32.58% year-over-year and a 3-year revenue growth of 12.73%, with strong demand in data centers driving its performance [14][16] - MACOM's Q4 FY25 revenue reached approximately $261.2 million, with a full-year revenue of $967.3 million, reflecting a 32.6% year-over-year increase [16]