Best Semiconductor Stocks for 2026 and How to Invest

Semiconductor stocks are shares of companies that produce the microchips and electronic components used in everything from smartphones to cars. They are part of the technology sector but are also manufacturing businesses, which means their businesses are cyclical, like any industrial business.

1. Qualcomm

2. Nvidia

Nvidia (NVDA -0.72%) has positioned itself as the platform for all types of AI, largely thanks to its portfolio and the powerful H100 Tensor Core GPU, putting it in a leading position to pursue new markets and expand revenue.

Beyond their GPUs and data centers, Nvidia also offers a variety of platforms to cater to the evolving AI landscape. Blackwell, for instance, is designed for trillion-parameter-scale generative AI. Spectrum-X is a new market offering aimed at scaling AI to Ethernet-only data centers.

Additionally, Nvidia's NIM (Nvidia Infrastructure Management) is a software solution that delivers enterprise-grade, optimized generative AI capable of running on CUDA (Compute Unified Device Architecture) everywhere.

CUDA is Nvidia's parallel computing platform and application programming interface (API) model, which allows developers to utilize Nvidia GPUs for general-purpose processing (an approach known as GPGPU, general-purpose computing on graphics processing units).

The case for Nvidia often comes down to one thing: It sits at the center of the largest technology cycle in decades. Demand for AI compute continues to explode, and Nvidia has both the hardware (H100, A100, upcoming Blackwell chips) and software ecosystem (CUDA, NIM, enterprise AI platforms) to capture that growth.

Beyond data centers, Nvidia is expanding into robotics, autonomous vehicles, digital twins, edge computing, and enterprise AI services—each of which represents a long runway for future revenue. Its gross margins remain industry-leading, and its pace of innovation gives it pricing power even in competitive markets.

Nvidia is also one of the most actively traded stocks in the world, which appeals to investors who want liquidity, tight spreads, and flexibility. For those who use options, Nvidia supports a wide range of strategies thanks to deep volume and robust open interest.

3. Intel

Intel Corp. (INTC -4.50%) is one of the most established names in the semiconductor industry, known for its legacy in PC processors and its large-scale manufacturing footprint.

While Intel has struggled in recent years with delays, market-share losses, and fierce competition, the company is now deep into a multi-year turnaround plan. This includes its “IDM 2.0” strategy, which aims to rebuild Intel’s manufacturing leadership, expand its foundry business, and strengthen its position in data centers and AI infrastructure.

Recent earnings show some early stabilization. Intel’s most recent quarter highlighted improving gross margins and positive operating cash flow, helped by restructuring and cost-savings initiatives. The company also raised revenue guidance for upcoming quarters, suggesting that PC demand and enterprise spending may finally be bottoming. Analysts remain divided, but the stock has seen periods of strong performance when sentiment improves around its manufacturing roadmap or government-supported domestic chip production.

Intel may be worth investing in if you believe in the long-term thesis of on-shore semiconductor manufacturing and Intel’s ability to regain competitiveness. A successful foundry buildout could unlock new revenue streams and diversify its business away from the volatile PC market. The risks are real -- execution remains the biggest variable -- but the upside could be meaningful if Intel delivers even part of its turnaround plan.

4. Texas Instruments

Texas Instruments (TXN -0.92%) takes a different approach from most high-profile chip companies. Rather than chasing cutting-edge processors or GPUs, TI dominates the world of analog and embedded semiconductors—chips used in power management, industrial automation, automotive electronics, and sensing applications. These markets grow more steadily and often deliver higher margins because customers rely on long product cycles and stable supply.

Recent news has been mixed. TI’s latest earnings commentary pointed to a slower-than-expected recovery in analog-chip demand, leading to cautious guidance and a sharp share-price reaction. Even so, the company continues to invest heavily in its future, committing more than $60 billion to expand U.S. manufacturing through new facilities in Texas and Utah. Analysts have noted that once the inventory correction normalizes, TI is well positioned to benefit from rising content in electric vehicles, factory automation, and long-duration industrial projects.

TI may be attractive for investors looking for a more stable semiconductor play. Its analog focus means it faces less volatility than high-end chipmakers tied to PCs or gaming. TI also generates reliable free cash flow, supports a long dividend-growth streak, and maintains a conservative balance sheet. The near-term softness could present an opportunity for patient investors who want lower-cyclicality exposure within the broader semiconductor sector.

1. iShares Semiconductor ETF (SOXX)

The iShares Semiconductor ETF (SOXX -4.11%) tracks 30 market-cap-weighted U.S. semiconductor stocks via the NYSE Semiconductor index. This ETF sported more than $16 billion in assets under management (AUM) in late 2025, charging a 0.35% expense ratio.

2. VanEck Semiconductor ETF (SMH)

The VanEck Semiconductor ETF (SMH -3.37%) tracks 25 market-cap-weighted, U.S.-listed semiconductor stocks via the MVIS US Listed Semiconductor 25 index. It had more than $37 billion in assets in late 2025 and charged a 0.35% expense ratio.