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.
Semiconductor
Picking top-performing semiconductor stocks in the industry can be tricky, and their performance is highly volatile since sales volumes ebb and flow. The semiconductor sector is growing rapidly as the world rapidly embraces its critical role in artificial intelligence (AI) development and applications.
Some of the best-performing stocks throughout 2023-2025, like Nvidia (NVDA +0.64%), have hailed from the semiconductor industry.
Best semiconductor stocks to buy in 2026
Here are four top picks for semiconductor industry secular growth trends:
| Name and ticker | Market cap | Current price |
|---|---|---|
| Qualcomm (NASDAQ:QCOM) | $144.3 billion | $134.17 |
| Nvidia (NASDAQ:NVDA) | $4.5 trillion | $185.94 |
| Intel (NASDAQ:INTC) | $233.7 billion | $48.00 |
| Texas Instruments (NASDAQ:TXN) | $179.2 billion | $198.78 |
1. Qualcomm
NASDAQ: QCOM
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2. Nvidia
NASDAQ: NVDA
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Nvidia (NVDA +0.64%) 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
NASDAQ: INTC
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NASDAQ: TXN
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Best semiconductor ETFs to buy right now
If you prefer not to pick single stocks, you can also buy a semiconductor exchange-traded fund (ETF) to gain exposure to the overall sector
Two top semiconductor ETFs in terms of overall assets under management (AUM) are:
1. iShares Semiconductor ETF (SOXX)
NASDAQ: SOXX
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2. VanEck Semiconductor ETF (SMH)
