Buy 5 Solid Semiconductor Stocks of 2025 With Room for Growth in 2026

Industry Overview - The semiconductor market experienced significant growth in 2025, with global sales reaching $208.4 billion in Q3, a 15.8% increase from Q2 [3]. - The market is expected to continue its upward trajectory, with forecasts predicting sales of semiconductor manufacturing equipment to hit $145 billion in 2026 and $156 billion in 2027 [6]. Demand Drivers - The surge in semiconductor sales is largely driven by robust demand from various industries, particularly fueled by the enthusiasm surrounding artificial intelligence (AI) [1][5]. - Major tech companies, including Amazon, Microsoft, and NVIDIA, are investing heavily in AI, which is anticipated to further increase semiconductor demand [5]. Company Highlights Analog Devices (ADI) - Analog Devices specializes in analog, mixed-signal, and digital signal processing integrated circuits, with an expected earnings growth rate of 12% for the next year [9]. - The Zacks Consensus Estimate for current-year earnings has improved by 5.3% over the past 60 days, and ADI holds a Zacks Rank 2 (Buy) [9]. MACOM Technology Solutions Holdings, Inc. (MTSI) - MACOM provides power analog semiconductor solutions and has an expected earnings growth rate of 16.5% for the next year [11]. - The Zacks Consensus Estimate for current-year earnings has improved by 3.7% over the past 60 days, with MTSI also holding a Zacks Rank 2 [11]. Silicon Laboratories (SLAB) - Silicon Laboratories focuses on silicon, software, and solutions for various markets, with an expected earnings growth rate exceeding 100% for the next year [13]. - The Zacks Consensus Estimate for current-year earnings has improved by 28.6% over the past 60 days, and SLAB has a Zacks Rank 2 [13]. NVIDIA Corporation (NVDA) - NVIDIA is a leader in visual computing technologies, with a focus on AI-based solutions, and has an expected earnings growth rate of 55.2% for the current year [15]. - The Zacks Consensus Estimate for current-year earnings has improved by 4.5% over the last 60 days, and NVDA holds a Zacks Rank 2 [15].