10 Most Undervalued Semiconductor Stocks to Invest in

Semiconductor stocks person been a large beneficiary of the AI roar since 2022. At the aforesaid time, they are besides prone to escalations successful the US-China AI commercialized war, which dominates headlines and often brings antagonistic sentiment into the market.

One specified improvement happened connected December 9, erstwhile Reuters reported that U.S. President Donald Trump had allowed Nvidia to merchantability its H200 processors to China. According to the news, the U.S. Commerce Department was moving connected the details of the agreement. This statement would besides use to each different chipmakers. As a result, the broader semiconductor assemblage is apt to make affirmative sentiment going forward.

Here is however Nvidia reacted to the development:

"Offering H200 to approved commercialized customers, vetted by the Department of Commerce, strikes a thoughtful equilibrium that is large for America"

Despite this deal, China volition inactive not person entree to the latest Blackwell and Rubin chips that Nvidia makes. In this way, the U.S. authorities appears to person struck a equilibrium betwixt continuing commercialized with China and denying it entree to state-of-the-art technology.

Here is however Donald Trump announced the woody connected the Truth societal media platform:

"We volition support National Security, make American Jobs, and support America’s pb successful AI. NVIDIA’s U.S. Customers are already moving guardant with their incredible, highly precocious Blackwell chips, and soon, Rubin, neither of which are portion of this deal."

These developments should beryllium seen arsenic supportive of the semiconductor manufacture successful the adjacent term. With that background, we person evaluated the astir undervalued semiconductor stocks to put successful and contiguous the database below.

To place the 10 astir undervalued stocks to put in, we archetypal screened each semiconductor companies with a marketplace headdress of astatine slightest $2 billion. We past examined their guardant P/E ratios to place those trading astatine slightest 25% beneath the NASDAQ guardant P/E of 26.35. Finally, we selected the apical 10 stocks with the champion imaginable upside based connected Wall Street statement and ranked them accordingly. Additionally, we besides included information connected hedge money holdings successful these companies arsenic of Q3 2025 to supply further penetration into capitalist interest.

Why are we funny successful the stocks that hedge funds heap into? The crushed is simple: our probe has shown that we tin outperform the marketplace by imitating the apical banal picks of the champion hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks each 4th and has returned 427.7% since May 2014, beating its benchmark by 264 percent points (see much details here).